Construction body calls for 'major changes' in budget to combat rising costs
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The head of the Construction Industry Federation (CIF) in Cork says builders will seek “major changes” in the next budget to deal with escalating costs in house building and commercial developments.
The construction industry body is calling on the Government to address development charges, Vat, special levies, and water connection in its next budget in order to ease cost pressures.
“Many aspects of private-sector development are now challenged due to the significant material cost increases,” said CIF’s Cork boss Ger O’Leary.
One of the main areas where the industry is struggling in is the delivery of private apartments. Mr O’Leary claimed there has been no private apartment building delivered in Cork city since the Elysian was completed in 2008. He said:
The CIF did not go into further detail on the changes it is looking for, but at a dinner hosted by the federation it warned that delays in investment for infrastructure in the construction sector will “lead to more extensive and wider economic and societal problems".
Mr O’Leary added that the funds were not there to spend on infrastructure after the recession and this has led to “some of the pinch points” that the construction industry faces in housing and transport.
The Government recently announced that an extra €160m could be paid to builders working on roads, healthcare facilities, schools, and other key infrastructure this year alone. This is aimed at softening the blow of surging inflation.
While the industry has been focusing on the impact of Brexit, the pandemic, and the war in Ukraine, Mr O’Leary indicated that sustainability must be a priority as well going forward.