Written answers
Thursday, 8 February 2024
Department of Public Expenditure and Reform
National Development Plan
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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173. To ask the Minister for Public Expenditure and Reform if he will consider the establishment of a state-run construction company to assist in achieving the National Development Plan goals and particularly the urgent need to address the housing crisis and critical infrastructure development. [5956/24]
Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware the Land Development Agency was established in 2018. The Land Development Agency’s (LDA) main purpose is to maximise the supply of affordable and social homes on public land in a financially sustainable manner. The LDA is a commercial, State-sponsored body that has been created to coordinate land within public control to provide affordable and social homes and build communities across the nation.
The ESRI published its report titled 'The National Development Plan in 2023: Priorities and Capacity' on 12th January 2024. The ESRI report acknowledges that it is clear that an accelerated NDP will create levels of labour demand in the construction sector where supply is simply unavailable. The report goes on to say that the effect of injecting additional demand is likely to lead to construction wage inflation and the drawing of labour away from other sectors.
In light of the ESRI report the question of establishing a State backed construction company would need careful consideration, notwithstanding the length of time it would take to establish such an entity in terms of legislation. It would also have to compete with private sector companies in an already constrained employment market and be funded by the taxpayer.
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