Councils not availing of funds for building

JUST SEVEN of the Republic’s 35 local authorities gave the go-ahead to publicly funded building projects over the last two months, figures released yesterday show.

The Construction Industry Federation said State and Government bodies had awarded new building contracts worth a total of €100 million in the first five months of the year.

The federation’s public construction activity report shows that, of the 35 county and city councils which play a key role in awarding these contracts, only seven gave the go-ahead for projects in their jurisdictions in March and April.

The biggest was the €35 million Portrane, Donabate, Rush and Lusk water treatment plant, awarded by Fingal County Council in north Co Dublin to a consortium made up of Aecom and Siac last March. This accounted for over half the total €60 million worth of publicly funded contracts awarded across the State in March and April.

The treatment plant got the go-ahead as it is needed to serve an area that has had one of the fastest population growth rates in the State over the last decade.

The federation warned that if the slow rate of contract awards continues, the Government will fall far short of its €5 billion infrastructure spending target next year.

Its commitment to spend €6 billion on development this year is likely to be met through the completion of a number of projects, including the last phases of a number of motorways.

The investment is designed to address the State’s poor infrastructure in a range of areas including communications, transport, school buildings and waste water treatment.

However, the federation says to meet longer term Government targets, State bodies must continue to bring new projects on stream, which has not been happening.

The federation’s director general Tom Parlon argued yesterday that the building industry could create up to 70,000 new jobs.

Employment in the sector has dropped to below 200,000 from its peak of 400,000 in early 2007.

Mr Parlon acknowledged that the sector had grown too large at its peak, but added that it had since fallen well below its optimum.

At the same time, he pointed out that the Republic still suffers from poor infrastructure, which has long-term implications for growth and competitiveness.

According to Mr Parlon, the Government is reconsidering what its priorities should be when it comes to planning new State-funded building projects. It is likely to focus on broadband, energy, waste management, water treatment, education and public transport.

Mr Parlon said this process had created a vacuum, “and construction jobs and construction companies are paying the ultimate price”.