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Articles from previous editions
of the Irish Building Industry Directory
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A critical step in the path to recovery of the industry and the economy is to rebuild overall confidence in housing development and the wider housing market by dealing with the problem of unfinished housing developments. Research undertaken by my Department, working closely with local authorities, the National Building Agency and the construction industry confirms that the initial fears regarding the possible extent of the problem of unsold new or unfinished housing stock has been somewhat exaggerated. The research, published as the National Housing Development Survey (October 2010) involved the identification of some 2,800 unfinished housing developments. These developments were associated with planning permissions for approximately 180,000 housing units. Of these 120,000 units had been commenced with some 77,000 having been completed and occupied. The remainder comprises some 23,000 homes which are completed and vacant, some 10,000 units which are nearly complete and some 10,000 units at varying stages of construction, from preliminary site clearance to foundations up to wall plate level. The survey establishes a proper evidence-based context for further action by Government and local authorities in relation to unfinished housing developments. Early progress in this regard already includes:
Importantly the Expert Group has already produced a draft Best Practice Guidance Manual for Managing and Resolving Unfinished Housing Developments. On conclusion of public consultation by mid-January 2011, the final guidance will be published as a comprehensive code of practice with buy-in from developers, the financial institutions and local authorities in managing and resolving unfinished housing developments. There is every reason to be confident that several problems which may have seemed insurmountable a year ago will be substantially resolved during the course of 2011.
Energy Efficiency in Buildings During my time as Minister I have advanced amendments to the Building Regulations (Part L) in 2008 and in 2010 to ensure that the energy required by new dwellings for fuel and heating purposes has been reduced to 40% and 60% respectively of the 2005 standard for a comparable dwelling. The Part L amendments referred to simultaneously reduced permissible CO2 emissions by 40% and 60% respectively (again relative to 2005 standards). The combined effect of these upgraded requirements has brought Ireland's energy performance standards to the forefront of such standards for dwellings across EU member states. Already, Irish manufacturers of construction products and components are responding by adapting their products to develop innovative solutions to the upgraded energy performance requirements. Such firms have found that interest in innovative energy efficient solutions does not stop here in Ireland. The export potential for such products is considerable. Indeed the learning and experience associated with the mass market deployment of innovative products is also a marketable commodity. Next year will also see the implementation of the new National Retrofit Programme which will incorporate current grant programmes such as the Home Energy Saving Scheme and the Warmer Homes Scheme which have already delivered energy saving upgrades to over 100,000 homes in Ireland. The National Retrofit programme aims to deliver energy efficiency upgrades to one million existing residential, public and commercial buildings by 2016. The economic and environmental gains arising from this Government's twin focus on energy efficiency and CO2 emissions reduction in the built environment are significant. In employment terms it represents a welcome lifeline for the industry at a time when activity and opportunities are otherwise low. It is vital for your industry's survival that this trajectory continues. Of course the same principles apply to all sectors of the economy and not just construction. That is why the National Climate Change Bill is such an important priority for enactment in 2011. John Gormley, |
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Energy
Efficiency Investment is the key to Economic Recovery
2010 |
2009 saw the recession in the construction industry deepen as activity levels in the key residential and commercial sectors contracted further. Public sector investment performed in line with expectations during 2009 but will be constrained by the ongoing pressure on public finances in the coming years. The reality is that trading conditions facing the industry will continue to be difficult in 2010. It is unlikely that the prospects for the industry will begin to pick up before 2011 and this is very dependent on how the economy in general fares next year and whether the much anticipated first signs of economic recovery begin to emerge.
It is vital to remember that, even in these straitened economic times, there are opportunities available to those who seek them out. The Green Party in Government is succeeding in bringing the concept of environmental sustainability to the forefront of the political and public policy agenda and I believe that the priority afforded to environmental sustainability considerations will continue to grow and achieve equal billing with economic and social considerations in the decision making process at national level and beyond.
This transition of itself brings with it many opportunities. Nowhere are these opportunities more relevant and apparent than in the construction industry. Take for instance the highly successful Home Energy Saving Scheme which was launched earlier this year. The scheme has already attracted the interest of over 36,000 households who have to date applied for grants totalling €41 million towards the cost of energy efficiency improvements works in their homes. Savings of over €170 million are expected to accrue to these households over the lifetime of the installed measures. Other schemes such as the Greener Homes Scheme for renewable energy technologies and the Warmer Homes Scheme aimed at low income families have also generated significant activity. At a time of contraction these new areas of business are invaluable.
Boosting energy efficiency is good for the environment and makes economic sense. It is a growing area of innovation with huge commercial and employment potential. The National Retrofit Programme announced in the recent 2010 Budget will see €130 million being allocated for energy efficiency measures in buildings next year. Building on the success of the schemes already in place, this programme has the potential to create up to 5,000 additional jobs next year alone. It is important to stress that this initiative is not a once-off, temporary stimulus introduced in a time of crisis. It is part of a longterm strategy of retrofitting over one million homes by 2025. The introduction of the Carbon Tax also included in Budget 2010 will provide an ongoing stream of funding to support ongoing investment in energy efficiency improvements giving further confidence that the policy focus here is longterm and sustainable.
While investment in energy efficiency measures provides a welcome lifeline for the construction industry and is a key strategic priority on the path to economic recovery, it is by no means the only construction-related policy issue being pursued by Government at present. As Minister for the Environment, Heritage and Local Government I will oversee capital spending of €1.5 Billion during 2010, which will support key investment in Social Housing provision and Water Services infrastructure. Capital investment by other Government Departments will also continue to be significant next year, not least the ambitious schools programme planned by the Department of Education and Science.
My Department is also bringing forward improvements in the building code to ensure that the safety and quality of our built environment continues to improve over time. In this regard, several significant improvements to parts of our building code are well underway and will be introduced in 2010, notably in the case of Parts H (Drainage and Waste Water Disposal), L (Conservation of Fuel and Energy) and M (Access for All).
A further challenge for 2010 is the necessary changeover to the Eurocodes as the harmonised basis for the structural design of construction works within the EU. NSAI has taken responsibility for implementing the Eurocodes in Ireland and has been working closely with industry to prepare the way for their mainstream use. Increasingly the business opportunities for Irish firms arise in the international arena where we are already competing effectively. The timely transition to the Eurocodes standards within the domestic environment will greatly assist our capacity to maintain and improve our competitive edge and expand our business base within other European markets.
These and other initiatives, such as the ongoing reforms of the planning code, urban and rural development guidelines, the implementation of the Government Policy on Architecture 2009-2015 published earlier and a growing focus on green public procurement at national and local authority level all provide a context for progress towards developing a more sustainable built environment.
In conclusion, my message to the construction industry at this time could not be simpler or clearer. The future of the industry lies in the delivery of buildings that have minimal environmental impacts and minimal energy demands. This applies both to new building activity and to the renovation of existing stock. Construction firms that can adapt quickly and openly embrace the concept of environmental sustainability will gain a distinct competitive advantage. Such firms are best placed to survive in the short term and to thrive when recovery comes, and come, indeed, it will.
John Gormley,
TD
Minister for the Environment, Heritage and Local Government
December, 2009
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Difficult
year for the construction industry following many years of spectacular
economic growth
2009 |
2008 has been a difficult year for the construction industry following many years of spectacular economic growth. What we are seeing is the building industry adjusting to a more sustainable level of activity against the backdrop of the global economic crisis. Output across all sectors of the industry: residential, commercial and public is falling. These are challenging times for all of us especially the residential sector which has been particularly badly hit. This year has seen a dramatic slowdown in the housing market. It is now expected that new home completions this year may be less than 45,000. Completions in 2009 could be less than 30,000.
Despite the economic difficulties, this time of challenge will present business opportunities for those willing and able to adapt. The Green Party in Government has quickly built a strong momentum for change in the area of sustainable construction and I believe companies that embrace this change will be at a distinct competitive economic advantage.
Part L Building Regulations have been revised to achieve a 40% improvement in primary energy consumption and CO2 emissions in new dwellings; a 60% improvement in primary energy consumption and CO2 emissions standards will follow in 2010.
In Ireland's second Carbon Budget which I delivered to the Dail last month I announced that we now need to plan even beyond these targets and to push the boundaries of environmental performance of housing further towards the goal of achieving zero carbon emissions; it is intended to consult extensively with construction industry interests over the coming year to achieve this goal. From the start of 2009 all dwellings offered for sale or rent, both new and existing, will require a Building Energy Rating (BER) certificate. The improved marketability of housing that achieves a high BER rating should further incentivise homeowners and developers to avail of the increasing number of energy efficient building solutions available.
My Department is working closely with the Department of Communications, Energy and Natural Resources in further developing that Department's programmes for the retro-fitting of existing dwellings such as the Home Energy Saving Scheme, the Warmer Homes Scheme and the Greener Homes Scheme which is now in its third year.
Additional activity is being advanced under my Department's social housing programme. A full audit of the public housing stock will begin in 2009, to lay the foundation for a programme of retrofitting, where required, to deliver modern standards of energy efficiency. In parallel with this audit a number of pilot retrofitting projects will commence in 2009; the learning derived from these will inform the wider roll out of the programme to commence once the audit is completed.
I am determined that my Department is proactive in assisting the industry to adapt itself to meet the demands of renewable energy technologies and sustainable building approaches. In this regard the Department has earlier this year developed Acceptable Construction Details which demonstrate how typical forms of construction used in Ireland can meet and often exceed the latest energy efficiency performance standards required in the Building Regulations. These Acceptable Construction Details which have been developed in close consultation with industry, have been warmly welcomed as a valuable resource for builders, designers and trainers throughout the construction industry.
I cannot stress strongly enough the importance for industry players at this time to adapt quickly to the new environmentally sustainable operating environment, and use their knowledge and expertise to innovate further. It is they who will benefit most from the many business opportunities already emerging and certain to continue in the years to come.
Mr. John Gormley T.D.
Minister for the Environment, Heritage and Local Government
December 2008
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€80
billion for construction public projects over the next 7 years
2008 |
While the very high levels of activity of recent years will not increase year on year as before the reality is all key areas of the industry will nonetheless continue to enjoy high levels of demand for its output in coming years. In this context the rebalancing of activity now taking place within the industry is a necessary and timely development.
Addressing climate change and reducing greenhouse gases are now central to political decision-making and public policy formulation and are among the main priorities for the Green Party in Government. Building regulations are being changed to ensure heat energy demand and carbon emissions from new housing will be reduced by 40% relative to existing standards from July of 2008 and by 60% from 2010 onwards. My ultimate objective is to achieve a 'zero carbon' standard for new homes.
The drive towards sustainability is already creating new demands for environmentally sustainable products and methods of construction and these demands will continue to gather pace. Planning exemptions for micro-renewable technologies used to improve heat and energy efficiency in homes will be extended to retail, commercial and industrial premises and agricultural holdings early next year. Astute firms capitalising on the opportunities associated with the growing demand for more environmentally friendly construction products and procedures will undoubtedly prosper.
The Government is the single largest client of the construction industry. It will invest €80 billion in public capital projects over the next 7 years under the new NDP in areas such as transport infrastructure, housing, water and waste -water services. Capital investment under the Public Capital Programme for this year alone amounts to some €11.8 billion.
The clamour that value for money be obtained in the procurement of public sector construction projects is growing ever more insistent. The new regime of fixed price contracts being introduced for the entire public sector will play a central role in delivering projects more efficiently with much better estimation of final project costs at the stage when contracts are awarded.
It is now imperative that public bodies and the industry adapt to the new suite of contracts as these are now mandatory for the entire public sector. My Department is playing a major role in the initiative; to date upwards of 800 professional staff employed in the local government sector have been trained in the operation of the new contracts.
I will conclude by wishing all associated with the Irish Building Industry Directory best wishes for a prosperous New Year.
John Gormley,
TD
Minister for the Environment, Heritage and Local Government
December, 2007