Michael McGrath (Cork South Central, Fianna Fail)
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1070. To ask the Minister for Housing, Planning, and Local Government if an analysis has been carried out by his Department on the impact on productivity in the construction sector as a result of Covid-19 restrictions and social distancing; the impact in terms of input costs; the way in which that will impact the viability of housing and apartment projects; and if he will make a statement on the matter. [8003/20]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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As most construction sites only commenced remobilisation from 18 May 2020, in light of the Government Roadmap for Reopening Society and Business, it is too early estimate with any accuracy the potential costs of the safe working practices required in line with the Return to Work Safely Protocol; COVID-19 Specific National Protocol for Employers and Workers, and their impact on the viability of housing and apartment projects.

While practically all housing relation construction activity had ceased from 27th March 2020, as the Deputy will be aware, a number of construction projects delivering urgent essential homes were activated during the period of restrictions. One of the key criteria to achieve designation under the above process was that where works were proposed, the Contractor employed by the local authority or the Approved Housing Body was required to confirm that they could undertake the works in accordance with HSE and Government COVID-19-related public health guidelines and recommendations. Another criteria was that these projects were, for the most part, practically complete, with minor final snagging, landscaping, paving and external works to be completed.

The activation of these sites gave both the construction site teams and the contracting body- either the local authority or Approved Housing Body- an opportunity to practically implement some of the concepts that were being prepared across the board by the Sector working with Government on standard operating procedures and to feedback to their representative organisation. It also allowed for a level of readiness to commence other activity on non-essential sites. While the earlier activation might also provide some slightly earlier indication of the additional costs arising, the real impact on programmes, costs and productivity will vary from site to site and the stage of development (commencement or near completion).

This view has been underscored in recent correspondence which I have received from Property Industry Ireland (PII), which indicates that it will be some time before such an exercise is possible, and noting that the sector is very conscious of the impact of any increase in costs on its competitiveness and so there is an incentive for the sector to examine ways in which to minimise or reduce costs.

The Construction Sector Group, chaired by the Department of Public Expenditure and Reform, and established to ensure regular and open dialogue between Government and the construction sector in the context of the delivery of the National Development Plan, will provide a useful forum for the engagement on the wider industry impacts of COVID-19 arrangements. This Group’s remit includes working with industry and government bodies to benchmark and improve productivity and environmental sustainability and to modernise public works delivery.

My Department has sought to support the current measures by encouraging planning authorities, where possible, to adopt a discretionary approach in relation to construction working hours conditions attached to planning permissions so as to assist the splitting of shifts for separating trades and activities required to achieve physical distancing on construction sites in accordance with relevant public health/ health and safety advice and protocols, while seeking to balance this with the need to ensure output and productivity by the sector.

Within this broader frame, my Department will monitor any specific viability issues arising for the housing sector. This is an area which my Department has actively considered in recent years and measures have been brought forward such as the standardisation of documentation and innovative production methods for social housing programmes and statutory planning guidance on building heights and apartments to improve viability by lowering costs, while ensuring a quality urban environment. My Department will also continue to participate in Construction Sector Group discussions on wider industry issues, including productivity and innovation.