Construction BUSINESS

The Construction Industry Federation (CIF) has responded to Budget 2017, indicating that while it “welcomed” housing measures such as the new tax relief for first time buyers, a lack of increased infrastructure investment remains a significant issue.

In order to fully realise the benefits of this new tax break, increased investment is absolutely necessary to transform new housing estates into thriving communities, according to CIF Director General, Tom Parlon.

He said: “The measures introduced today are a significant step towards solving the housing crisis by addressing the chronic lack of supply in new builds. In terms of resolving, the CIF’s Irish Home Builders Association welcomes the introduction of this tax rebate scheme aimed at helping first time buyers to save deposits for starter homes.

“However, today, we are predicting that the low level of infrastructure investment across our economy will be the next crisis Ireland faces. Nearly a decade of low level investment in infrastructure now risks economic growth and confines regions outside the Greater Dublin Area to permanent lower growth levels.

“Unfortunately, Ireland has one of the lowest levels of infrastructure investment in the EU, and successive bodies such as the European Commission, the OECD, the National Competitiveness Council, and several industry representative bodies have all called for an increase in infrastructure spend.

“The Government must continue to press our case with the EU to facilitate this investment. The pay-off for the exchequer is evident as every €1 billion invested in infrastructure generates 10,000 jobs.”