Architects call for cut in VAT rate

More than 1,000 architects and architectural technicians – about 40 per cent of the total number in the profession – have lost…

More than 1,000 architects and architectural technicians – about 40 per cent of the total number in the profession – have lost their jobs since January 2008,the Royal Institute of the Architects of Ireland said today.

It called on the Government to reduce the VAT rate on construction professionals’ services in tomorrow’s budget in an effort to stimulate employment for architects, engineers and surveyors.

RIAI director John Graby said that if urgent action was not taken by the Government, then, based on current trends in construction activity, the unemployment situation among architects “is likely to get even worse still”.

“In reality, what we have witnessed is that a whole generation of the best trained architectural professionals the country has ever seen, have been or will soon be let go. This represents a massive loss to the state and our community in general in terms of the investment made in their education and training."

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Mr Graby noted that the EU had granted permission for member states to cut VAT on repairs and refurbishment of private homes to 5 per cent.

"As a minimum step to ensure more sustainable building going forward, we would urge the Government to at least reduce the VAT on architectural and other construction professionals’ services to the same rate that applies to the rest of construction.”

The RIAI also called for the development of a research and development facility for the construction industry, along the lines of the former An Foras Forbartha.

"If our commitments to preventing climate change are to be delivered on, then how we design and make our buildings is a critical factor and we need to put resources into research to ensure that Ireland is leading the drive in this area," Mr Graby said.