Housing construction has dropped by 26 per cent in Connacht and the north-west, according to figures for the first nine months of 2001 published by a leading construction firm.
However, Mr John O'Regan, director of the Patterson Kempster Shortall's office in Galway, says the medium-term prospects remain strong. He hopes the recent Budget measures will help to "restore growth" in the residential sector.
A reduction in construction output in the region is anticipated this year, Mr O'Regan continued. "The effects of the recent economic downturn, particularly post-September 11th, have been felt in the Border, Midlands and West region. Galway city, which has a high level of pharmaceutical and medical technology companies, has been less affected by the downturn than some other cities."
The industrial and commercial areas will be most affected, his company believes, and this will lead to a fall in demand for new commercial and industrial space. "However, the indications from the Government are that the public capital programme will see an increase in building activity for the health and education sectors. These increases, along with the planned infrastructural investment under the National Development Plan, should in part counter the anticipated reduction in private sector investment."
The company is aware of concerns about lack of commitment to the development plan in the region, and urges its full implementation as a Government priority.
Infrastructural deficit was also on the mind of Mr Liam Connellan, former director general of the Confederation of Irish Industry and chairman of the National Roads Authority, last week in an address to the Institution of Engineers of Ireland in Galway.
Mr Connellan, who is president of the institution, outlined the challenges of developing an appropriate spatial strategy to meet the needs of the growing population throughout Ireland.This issue was also addressed by the Galway Chamber of Commerce in its response to the National Spatial Strategy. He noted that the need for engineers was "greater than it has ever been", if Ireland was to "continue its progress up the international value-added ladder" and play an ever-increasing role in the global economy.