The Government must keep its pledge to spend billions of euro on water and electricity networks to support new house building, the Construction Industry Federation (CIF) will warn ministers on Tuesday.
State water utility Uisce Éireann has told the Government that it faces serious challenges providing the infrastructure needed for the 300,000 homes the Coalition hopes will be built here by 2030.
A CIF delegation will tell Paschal Donohoe, Minister for Finance, and Jack Chambers, Minister for Public Expenditure that building 60,000 homes a year will need “more than words” at a meeting on Tuesday.
The federation is meeting the ministers to discuss its pre-budget shopping list, which includes a call that the Government earmarks €500 million per year for the State water company to ensure it can build the new homes needed to end the housing crisis.
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In advance of the meeting, Hubert Fitzpatrick, CIF director general, welcomed the Coalition’s housing target.
“To enable development at this scale, cities, towns and regional communities urgently need billions of euro in balanced regional investment across critical infrastructure,” he pointed out.
He maintained that the building industry was ready to deliver, but needed commitments on timing and funding to provide essential infrastructure.
“We stress that in Budget 2026, multi-annual investment in water and wastewater infrastructure, the electrical grid and transportation must be prioritised,” said Mr Fitzpatrick.
He argued that further delays in providing utilities, the backbone of housing, economic growth and job creation, were not an option.
[ Ringfence €500m annually for water services, builders tell GovernmentOpens in new window ]
Mr Fitzpatrick acknowledged that Government’s revision of rules limiting rent increases in pressure zones, where demand is highest, along with changes to design standards, had boosted confidence among investors interested backing apartment building.
But he cautioned that projects still struggled with high costs and needed financial aid.
“We therefore recommend targeted measures including a reduction in VAT, capital allowances, and supports for brownfield site development,” he said.
“In particular, reducing VAT on residential property will help lower costs for home buyers and renters.”
The CIF has proposed cutting VAT on all new apartment schemes, saying it would immediately cut costs and boost supply.
“The Residential Zoned Land Tax should also be reassessed to ensure active builders are not penalised for delays beyond their control, such as planning or utility connection issues,” Mr Fitzpatrick added.
The federation dubs the Republic’s infrastructure gap “its greatest competitiveness challenge”, which demands urgent “plan-led investment”.
It argues that Government should increase investment in the national grid and electricity infrastructure.
