Tuesday, 27 January 2009 12:38

55,000 construction jobs to be lost by 2011, says CIF

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The Construction Industry Federation has predicted that up to 55,000 jobs could be lost in the sector by the end of next year unless action is taken by the Government.


 

The Construction Industry Federation has predicted that up to 55,000 jobs could be lost in the sector by the end of next year unless action is taken by the Government.

The stark figures are contained in a submission to Government, as part of its participation in the current round of social partnership talks, aimed at stabilising the public finances.

In the document, the CIF says the economic environment in which the industry operates deteriorated markedly last year.

Annual output from the sector, which was worth €38bn in 2007, or 24% of GNP, could fall by more than half, to as low as €14bn by the end of next year, unless stimulus packages are put in place, the CIF says. The CIF claims the rapid downturn will have serious consequences for direct and indirect employment in the industry.
 
Direct employment, it predicts, has fallen from 255,000 in the last quarter of last year (which was already at 2006 levels), to an estimated 190,000 now, and could fall further to 135,000 by the end of next year, unless action is taken.

The industry says that in this context, it is imperative that wage rates in the industry are reduced by at least 10% and a pay freeze is commenced.

It is also calling on Government to take steps to protect jobs and boost activity, which in turn will help the wider economy.

The current housing market, it believes, provides an opportunity for Government to acquire up to 10,000 additional houses for social housing purposes at knock-down levels.

The group is also calling for fresh incentives to assist first time buyers and a scheme to encourage home owners to retrofit their homes with insulation, a market worth up to €9bn it says.

It also suggests commercial property stamp duty rates be cut from 6% to 4%.

Calling for continued investment in 'public capital projects', the CIF claims a significant number of such scheduled projects have already been delayed, postponed or cancelled last year and this year, because of budgetary and other factors.

It also suggests that the State could harness private financial investment to for additional infrastructure and buildings.

 

(c) RTE

Last modified on Tuesday, 10 March 2009 01:35
Jeff Colley

Jeff Colley is the editor of Passive House Plus. He won the Green Leader award at the 2010 Green Awards for his advocacy work on the inclusion of energy ratings in property advertising, and a proposal to finance energy upgrades via utility bills.

He established Construct Ireland (for a sustainable future), Ireland's pioneering sustainable building magazine, in 2003. The magazine evolved into Passive House Plus in late 2012, the world's first English language magazine focused on passive house, as well as other aspects of sustainable building.

He is also a founder of Éasca, (the Environmental and Sustainable Construction Association) , an organisation set up to develop and promote a membership of approved companies offering genuinely sustainable solutions.

He writes a regular column for the Sunday Times, and has authored, co-authored and contributed to articles on sustainable building for numerous newspapers including the Irish Times, The Sunday Business Post, the Irish Examiner & the Sunday Tribune.

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