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BUILDINGA BETTERIRELAND

C O N S T R U C T I O N I N D U S T R Y C O U N C I L J U N E 2 0 1 0

INVESTING ININFRASTRUCTURE ANDTHE BUILT ENVIRONMENTTO SUPPORTIRELAND’S SMART ECONOMY

The Association of Consulting Engineers of Ireland46 Merrion Square,Dublin 2,Ireland

Building Materials FederationConfederation House,84/86 Lower Baggot Street,Dublin 2

Construction Industry FederationConstruction House,Canal Road,Dublin 6

Institution of Engineers of Ireland22 Clyde Road,Ballsbridge,Dublin 4

The Royal Institute of the Architects of Ireland8 Merrion Square,Dublin 2,Ireland.

The Society of Chartered Surveyors5 Wilton Place,Dublin 2

The CIC was established in 1991 to deal with issues of common inter-est to the construction industry in relation to overall policy matters. Itrepresents approximately 45,000 members across all sectors of the in-dustry, and this report has been complied with expert inputs fromeach organisation including architects, engineers, surveyors, contrac-tors and suppliers.

CONTENTS

Construction Industry Council June 2010

Foreword 1

Employment & Job Creation 3

Economic Competitiveness 5

Public Capital Programme 7

Environment & Climate Change 9

Planning & Spatial Policy 11

Transport & Communication 13

Infrastructure & Services 15

Science,Technology & Innovation 17

Sustainable Communities 19

Health & Children 21

Education & Skills 23

Community Facilities 25

Arts & Culture 27

Tourism & Leisure 29

Delivering theVision 31

Executive Summary 33

Notes 35

Credits 36

June 2010 Construction Industry Council1

F O R E W O R D

This report is an update of the ConstructionIndustry Council’s 2009 submission to Gov-ernment “Jobs and Infrastructure - A Plan forNational Recovery”.

It reiterates the CIC’s recommendations forinvestment in infrastructure and the environ-ment required to support Government’score policy “Building Ireland’s Smart Economy -A framework for Sustainable Economic Renewal”.

.

The report is issued in response to the CIC’sgrave concerns for the ongoing contractionin construction, and its impacts: not only forthe loss of jobs and skills built up over 20years, but also for its effect on the overallperformance of the economy, and our abilityto attract high-quality inward investment -and talent - to Ireland in the years ahead.

The current recession presents a historic op-portunity to redress the infrastructure andenvironment deficits which have and will con-

tinue to detract from both our quality of lifeand our economic competitiveness goingforward.

With the economy projected to return togrowth, and the population estimated toreach 5,000,000 by 2020, it is imperative thatGovernment demonstrates confidence in theSmart Economy framework by taking urgentsteps to advance the CIC’s recommendations- and its own stated policies - to invest in in-frastructure and the environment, so as toensure that Ireland is “in pole position whenthe global recovery begins”.

This investment would have immediate short-term benefits: firstly, reducing unemploymentin construction and the professions; and sec-ondly stimulating job creation and enterprisein the wider economy.

The CIC, established in 1991, represents ap-proximately 45,000 members across allsectors of construction on issues of commoninterest and policy.

This report has been complied with expertinputs from architects, engineers, surveyors,contractors and suppliers. It sets out the firststeps to compiling a needs analysis of the in-frastructure and environment works requiredto bring Ireland’s stock of physical capital upto the level expected of a twenty-firstcentury OECD economy.

Its key message is that now is the time forGovernment to demonstrate the political willto plan and invest in the future, and to leadIreland from recession to recovery. By anymeasure this would be a win-win investment.

“An advanced competitiveeconomy requires first-class infra-structure, which will deliver effi-cient and integrated transportsystems, high quality technicalconnectivity, including broadband,cost effective energy, sustainableenvironmental solutions and an at-tractive quality of life for itspeople.”

Engineers Ireland / The Irish Academy ofEngineering

�� Prioritise investment in infrastructure to restore the constructionsector to its optimum level of €18bn and 250,000 jobs in direct and in-direct employment (equivalent to 12% of 2008 GNP).

�� Maintain the Public Capital Programme at a minimum of €5.5bn perannum over the period 2011 to 2016, and increase investment wher-ever possible.

��Prioritise investment in infrastructure based on employment generat-ing potential, both in the construction phase and long-term whole-lifebenefits to society and the economy.

�� Adopt an integrated approach to planning and infrastructure deliverythrough an urgent review of both the National Development Plan andThe National Spatial Strategy.

�� Utilise innovative mechanisms to finance the delivery of infrastruc-ture, including off-balance sheet funding such as the CIC proposed in-frastructure bond.

��Ensure that revenue raised through alternative funding mechanisms,is additional to the Public Capital Programme.

�� Reinstate rolling five-year capital investment envelopes to allow gov-ernment departments plan and deliver projects effectively.

�� Review planning and public procurement procedures to reduce ten-dering costs and effect efficiencies in delivering infrastructure.

�� Use the current recession in construction to deliver first class publicinfrastructure and high quality living environments at excellent valueto the exchequer.

�� Retain vital skills in Ireland, save job losses in construction and thewider economy, and stimulate growth to lead Ireland from recessionto recovery in 2011.

Construction Industry Council June 2010 2


Construction is an important employmentgenerator in the Irish economy, both directlyin the building industry and indirectly in areassuch as professional services, retailing and themotor trade.

At the end of 2009 employment in construc-tion had reduced to under 200,000 from apeak of over 400,000 in 2007. Current pro-jections indicate that the industry will shrinkfrom €17bn in 2009 to €12bn by the end of2010 and unless urgent action is taken, to aslow as €7bn - or 6% of GDP, half of the EUaverage - in 2011.

When indirect employment is accounted for,over 200,000 jobs have already been lost as aresult of the downturn, and a further 120,000are at risk over the next 12 months.

The consequences of this collapse are im-pacting on every area of Irish life: unemploy-ment in the building trades and associatedprofessions; loss of valuable skills and humancapital built up over generations; failure ofbuilding and engineering companies and themanufacturing, services and professionalsectors which support them; reduction inoverall economic activity and its impact onquality of life and social cohesion.

E M P L O Y M E N T & J O B C R E A T I O N

Priorities

��Prioritise investment in construc-tion of key infrastructure to stemthe rise in unemployment in build-ing, the professions and the widereconomy.

��Utilise the excellent value in thecurrent economic downturn toprevent 120,000 job losses in thenext 12 months and to advance pri-ority projects in the National Devel-opment Plan.

��Retain human capital and vital skillsbuilt up over 20 years, in construc-tion, the professions and the widereconomy.

��Initiate social employment initia-tives to utilise available construc-tion skills on essential public worksprogrammes.

��Create public sector internship pro-grammes for unemployed designand construction professionals andgraduates.

��Create employment to restore con-fidence in the construction industryand the professions, and to aid eco-nomic recovery.

“Without urgent action from Gov-ernment, the CIC expects furtherjob losses in 2010 and into 2011,resulting in employment in thesector shrinking to a level not seensince 1994.”

CIC 2009 Report to Government

50

100

150

200

250

300

350

400

450

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

Indirect Employment

Direct Employment

Optimum employment level

Employment Table


E C O N O M I C C O M P E T I T I V E N E S S

Construction is an important element ofGDP in all modern economies. Ireland’slegacy of infrastructural deficits, and our pro-jected population growth in the decadesahead, adds to the economic importance ofmaintaining a strong construction sectorgoing forward.

It is estimated that Ireland should have a con-struction output of at least €18bn in themedium term, compared with the projectedturnover of €12bn for 2010.

Both the ESRI and the OECD have noted thenegative impacts of Ireland’s infrastructuredeficits, both on local economic growth andour competitiveness in the world economy.

The ESRI has calculated the positive effects ofinvestment in construction: for every €1bnspent on infrastructure, GNP is estimated toincrease by €0.4bn per annum in the yearsimmediately after the money is spent.

Addressing Ireland’s infrastructure deficits isessential to our efforts to raise competitive-ness and boost economic growth, and makingthe transition from recession to recovery.

Priorities

��Utilise investment in infrastructureto restore confidence, stimulateeconomic growth, and increaseIreland’s international competitive-ness.

��Prioritise infrastructure investmentbased on employment generatingpotential, both in the constructionphase and long-term whole-lifebenefits to society and the widereconomy.

��Prioritise capital investment priori-ties on the basis of projects’ contri-bution to the principles ofsustainable development, and arevised National Development Planand National Spatial Strategy.

��Use the current recession in con-struction to deliver first class publicinfrastructure and high quality livingenvironments at excellent value tothe exchequer.

��Prioritise investment in infrastruc-ture to restore the constructionsector to its optimum level of€18bn and 250,000 jobs in direct andindirect employment (equivalent to12% of 2008 GNP).

“If we wish to keep talentedpeople working in Ireland, as wellas attracting the most talentedpeople from around the world toour shores, we cannot afford tooffer a poor quality living environ-ment.”

Brian Cowen TD, Taoiseach


6Construction Industry Council June 2010

P U B L I C C A P I T A L P R O G R A M M E

The €5.5bn Public Capital allocation set outfor 2011-2016 in Budget 2010 is a fraction ofthe €8.5bn recommended by the ESRI in2006.

CIC research suggests that current policy isfocussed on completing existing contractualcommitments with new projects minimisedto the point that it is unlikely that even thevery reduced capital spending targets for2011 and 2012 will be delivered.

Despite suggestions that lower tender pricesare compensating for reductions in the publiccapital programme, the reality is that a signifi-cant number of vital public projects havebeen cancelled or postponed in the last twoyears.

Failure to maintain the public capital pro-gramme will have catastrophic effects on theconstruction industry, and on the widereconomy in terms of employment, continuedrecession and national competitiveness.

While it is recommended that most infra-structure investment should come frompublic funds, the CIC’s 2009 report proposedsolutions for alternative funding options.

Priorities

��Maintain - and increase whereverpossible - the level of Public CapitalProgramme spending at €5.5bn perannum as set out in Budget 2010.

��Prioritise investment in essential in-frastructure to restore the con-struction sector to its optimumlevel of €18bn per annum and250,000 direct and indirect employ-ment.

��Approve infrastructural projects foradvancement to detail design andready for tendering.

��Review public procurement proce-dures to reduce abortive costs intendering and effect efficiencies indelivering public infrastructure.

��

Utilise innovative mechanisms tofinance the delivery of infrastruc-ture, including the public capitalprogramme, and off-balance sheetfunding.

�� Ensure that revenue raised throughalternative funding mechanisms,such as the CIC proposed Infra-structure Bond, is additional to thePublic Capital Programme.

“The core rationale for ourcapital investment programme isto ensure that we have the req-uisite public infrastructure to facilitate a return to growth sup-porting sustainable job creation.”

Minister Martin Mansergh, TD


Worldwide, fossil fuel consumption has in-creased by almost 500% in the last halfcentury. The bulk of this energy is consumedwithin buildings, with much of the rest usedfor the transportation of goods and people.

As the world reaches a peak oil moment,how we plan the buildings, towns and infra-structure required for Ireland’s projectedpopulation growth, and increased urbanisa-tion, must be considered from the perspec-tive of environmental sustainability.

Also, to protect the economy from furtherenergy supply shocks - Ireland is 90% relianton imported oil and gas - it is imperative thatthe State invests in renewable energy sup-plies to reduce costs, lower CO2 emissions,and provide greater energy security.

As stated in the ‘Smart Economy’ the successof our economy is inextricably linked to howwe manage our environment and how Irelandbrands its ‘green image’ to competitive advan-tage, for example in food production, tourismand the built environment generally.

Priorities

��Review the National DevelopmentPlan and National Spatial Strategyvis-a-vis the principles of sustain-able development.

��Plan for increased urbanisation andhigher population densities todeliver sustainable development,reduce energy consumption andcombat climate change.

��Advance policy objectives toachieve the targets set out in theNational Climate Change Strategy2007-2012.

��Increase investment in energy infra-structure to achieve 40% of all elec-tricity from renewable sources by2020.

��Undertake flood risk assessmentsand plan for the protection of infra-structure and urban areas againstflood damage due to rising sealevels and climate change.

��Advance the retro-fitting of1,000,000 homes and all publicbuildings to achieve higher environ-mental performance and reducedenergy costs.

E N V I R O N M E N T & C L I M A T E C H A N G E

“Ireland is uniquely positioned interms of renewable energy re-sources. We have the best windand ocean potential in the world,and we need to move now toensure that this potential is har-nessed to the country’s benefit inthe years and decades ahead.”

Minister Eamon Ryan, TD


P L A N N I N G & S P A T I A L P O L I C Y

In 2000 the world entered the “UrbanCentury.” For the first time the majority ofthe global population lives in urban areas. InIreland the percentage living in cities and townshas grown from 32% in 1926 to 60% in 2008.

International research summarised in the Forfás 2009 report “Cities: Drivers of NationalCompetitiveness” tells us that the majority ofthe world’s enterprise, innovation and highereducation is located in cities, and cities arenow the drivers of the global economy.

This points to the importance of enhancingthe quality and attractiveness of Ireland’scities, towns and villages as a central compo-nent of the drive towards economic competi-tiveness and sustainable development.

Planning is about vision; it is about asking our-selves what kind of Ireland do we want, forour children, and our children’s children?

As the economy returns to growth and thepopulation increases towards its projected2020 level of 5,000,000 real planning for thefuture is vital. We need to revisit the NationalSpatial Strategy and National DevelopmentPlan as a matter of urgency and plan for in-creased urbanisation - and population densi-ties - which are required to maintain Ireland’scompetitiveness in the world economy.

Priorities

��Plan for greater urbanisation and anincrease in population densities tomeet demographic projections for2020 - 2050.

��Revisit the National Spatial Strat-egy in the light of current economicrealities and a revised National De-velopment Plan.

��Improve national competitivenessand delivery of NSS objectivesthrough integrated developmentand delivery of hard and soft infra-structural provision.

��Reinforce the principles of sustain-able development in spatial policyand statutory development plans topromote economic competitivenessand environmental quality.

��

Improve the delivery of best prac-tice in planning and sustainable de-velopment through implementationof the Planning and Development(Amendment) Bill 2009.

��Effect improvements in the opera-tion of the planning system todeliver better outcomes and effi-ciencies.

“Planning is about vision: it isabout asking ourselves what kindof Ireland do we want, for our chil-dren, and our children’s children?”

Paul Keogh, President, RIAI


T R A N S P O R T & C O M M U N I C A T I O N

Despite major investment in our road infra-structure and considerable progress over thelast decade, significant gaps remain in thenation’s transport infrastructure.

The strong connections which exist betweenDublin and other cities now highlight the factthat regional cities and NSS urban areas arestill not adequately connected, particularlyalong the Atlantic corridor.

The Renewed Programme for Governmentsets out the proposed level of public capitalexpenditure on new Transport 21 projects.This investment must be maintained, if not in-creased, to rectify transport infrastructuredefects.

In planning for the future, the principles ofsustainable development must be addressed:investment needs to be focused, not only interms of its social and economic benefits, butalso its environmental impacts.

The delivery of transport and communicationinfrastructure effectively and economically re-quires greater urbanisation and increasedpopulation densities, with investment focusedon areas served by public transport and awayfrom those areas more reliant on private motoring.

Priorities

��Advance Transport 21 to improveroad and public transport networksto meet the projected growth andtraffic flows between principalurban areas particularly along theAtlantic corridor.

��Plan for increased urban densitiesto provide for the economic deliv-ery of both the national road andpublic transport infrastructure re-quirements.

��Continue investment in the actionsoutlined in the Sustainable Traveland Transport Action Plan 2009 andpromote a modal shift away fromprivate motoring.

��Reinforce the principles of sustain-able development through increas-ing the capacity of the publictransport network

��Prioritise investment in broadbandinfrastructure in cities and urbanareas with access to quality labour,and fourth-level education and re-search capability.

��Plan for increased urban densitiesto provide for the economic deliv-ery of high capacity informationtechnology infrastructure.

“The quality of transport infra-structure is a key consideration indetermining the competitivenessaspect of any location”



I N F R A S T R U C T U R E & S E R V I C E S

The National Development Plan 2007-2013set out to address the deficits in the nation’sphysical infrastructure, but current economiccircumstances have reduced investment inthe NDP considerably below what was envis-aged in the 2007 plan.

The capital investment targets in the WaterServices Sub-Programme of the NDP hasbeen reduced significantly, notwithstandingthat increased investment in water services -including network rehabilitation - is urgentlyrequired.

National waste policy over the past ten yearshas delivered significant improvements in re-cycling, but delivery of energy recovery proj-ects has slowed, making EU targets increas-ingly difficult to attain.

In addition, Ireland faces a growing demandfor infrastructure on account of the pace ofurbanisation and projected populationgrowth for the decades ahead.

As a result, Ireland lags behind other OECDcountries in regard to the quality of its publicinfrastructure and physical environment,placing enterprise and industry at a serious disadvantage.

Priorities

��Address water supply quantity andquality deficits and complete waterservices strategic plans in accor-dance with the Water Supply Act.

��Increase investment in energy infra-structure to achieve 40% of all elec-tricity from renewable sources by2020.

��Continue ESB, Eirgrid and Bord Gáisinvestment in extending and up-grading the national electricity andgas distribution and transmissionnetworks

��Follow through on Governmentcommitments to introduce domes-tic water metering and charging,and accelerate investment innetwork rehabilitation.

��Increase investment in water recov-ery, including recycling and alterna-tive treatment systems.

��

Prioritise infrastructural projectson cost-benefits analysis based onemployment generated, rates ofreturn and ability to add to the pro-ductive potential of the economy.

“Demand for water should bemanaged in a sustainable mannerwith an emphasis on conservation,loss reduction, metering and aneconomic charge for water.”



T E C H N O L O G Y & I N N O V A T I O N

The Government Strategy for Science, Tech-nology and Innovation 2006-13 sets out avision for Ireland as an internationallyrenowned hub for excellence in researchwithin an innovation-driven culture.

However, a recent report from the HigherEducation Authority estimates that up to 40%of the State’s third level infrastructure is substandard, and in need of major capital invest-ment to bring it up to the OECD standards.

In addition, R&D cutbacks in higher educationinstitutions and reduced grants to industryhave had a negative impact on essential post-graduate research.

The European Commission has stated that3% of GDP should be invested in R&D.Ireland’s recent economic downturn has rein-forced the need to foster an economy builton innovation if the country is to move fromrecession to recovery.

The “Smart Economy” framework sets out theneed to develop the innovation componentof the economy through investment in humancapital, with a corresponding commitment toinvestment in the physical capital required forscience, technology and innovation to thrive.

Priorities

��

Implement recommendations inthe report of the Innovation Task-force and other Government com-missioned studies.

��Maintain public capital investmentprogramme in research and innova-tion to generate economic growthand inward investment.

��Audit third level building stock vis-a-vis current standards, and priori-tise investment to deliverinfrastructure to OECD qualitystandards.

��Restore the Gateway InnovationFund (GIF) to stimulate Gatewaydevelopment in the context of arevised National Spatial Strategyand National Development Plan.

��Prioritise broadband infrastructureinvestment in urban areas withaccess to quality labour, and fourth-level education and research capa-bility.

��Continue development in key flag-ship projects including the DigitalHub and National Digital ResearchCentre.

“ We don’t know how long thiscrisis is going to last... when it isover, those who have invested increativity and innovation will findthemselves ahead of the pack.”

Ján Figel’, EU Commissioner


S U S T A I N A B L E C O M M U N I T I E S

Projected population growth, household for-mation and demographic change betweennow and 2020 require urgent planning toprovide for Ireland’s future housing needs.

It is estimated that housing output for 2010 willbe in the order of 10,000 units, whereas theCSO and ESRI project demand going forward inthe order of 40,000 units per annum.

In this context, the current over-supply willreduce dramatically - particularly in urbanareas - as confidence returns and the pro-jected economic recovery takes hold.

Notwithstanding the current economic crises- and NAMA - the task of creating high quality,integrated neighbourhoods remains one ofthe greatest challenges facing Ireland today.

The implementation of Government’s policystatement on housing “Delivering Homes, Sus-taining Communities” requires urgent evidencebased research - how many homes will be re-quired? what type of homes will they be?where will they be located? how will theprinciples of sustainable development beapplied to planning for growth? Now is theopportunity to address these issues.

Priorities

��Compile a register and mapping ofthe national housing stock, in termsof location, type, condition andcompliance with regulations andenergy rating criteria.

��Audit statutory plans to assess theadequacy of existing plans in thecontext of current population pro-jections and a revised NationalSpatial Strategy.

��Increase investment in socialhousing to eliminate lists through acombination of new-build and inno-vative private rental leasing initia-tives.

��Initiate pilot housing projects thatdemonstrate best practice in urbandesign, energy efficiency and theprinciples of sustainable develop-ment.

��Increase investment under thepublic capital programme, particu-larly in the areas of regeneration,special needs and social housing re-habilitation programmes.

��Implement a national retro-fittingand energy upgrade programme forall state and privately-ownedhousing stock.

“Sustainable communities areplaces where people want to liveand work, now and in the future, ...they are safe and inclusive, wellplanned, built and run, and offerequality of opportunity and goodservices for all.”

EU Bristol Accord


H E A L T H & C H I L D R E N

Healthcare is an important element of gov-ernment policy and capital expenditure, asset out in “Quality and Fairness: A HealthSystem for You”. Healthcare provision is seennot only in terms of treating illness, but alsoas a barometer of social wellbeing and qualityof life.

A recent ESRI healthcare report highlights theneed for ongoing capital commitments. Invest-ment in our healthcare buildings must addressissues such as historical deficits, our growingpopulation, higher environmental standards,improved regulations, changes in clinical prac-tice and medical technology.

It must also address infrastructural and ca-pacity issues across the entire health estate.For example, a recent Oireachtas reportnoted that of the 500 primary care centrestargeted by the HSE in 2000, only 200 - orapproximately one third - have been deliv-ered to date.

Notwithstanding the current economic situa-tion, it is essential to plan for future needsacross all healthcare programmes, so as toallow a more agile response when economiccircumstances improve as projected in theyears ahead.

Priorities

�� Implement the Health Capital Plan,which provides for the procurementand construction of major health-care projects nationwide.

��Upgrade existing healthcare infra-structure to address risks and defi-ciencies, and to comply withemerging environmental andhealthcare standards.

��Release beds in acute hospitals byinvesting in long-stay residentialunits in local communities to delivernew models of care, and reducedcosts in use.

��Prioritise investment in primarycare facilities nationwide to directprovision of care away from acutehospitals into the community.

��Explore alternative funding sources,including identification of surplusproperty assets to be used tosupport investment in new infra-structure.

��Maximise opportunities in planningnew projects to achieve operationalefficiencies and revenue savings,which can contribute to capitalcosts.

“Our health care system mustreflect our national values: ourconcerns for equity, our commit-ment to diversity, our determina-tion to end poverty anddisadvantage.”Minister Micheál Martin TD


E D U C A T I O N & S K I L L S

The Department of Education’s website indi-cates that 1,100 schools are currently seekingmajor capital works. With pupil numbers pro-jected to rise in the years ahead, it is esti-mated that Ireland will require a further 625schools to meet 2020 projections.

This excludes renovation of the existingstock, and removal of the large number ofeducationally and environmentally unsustain-able pre-fabs.

International research indicates that schoolbuilding quality has a direct impact onteacher morale, community satisfaction, andeducational outcomes. Yet Ireland’s invest-ment in education – currently 4.7% of GDP –compares poorly with the OECD average of6.2%, and our expenditure on construction islow - €750 psm compared to €1,800 psm fortypical government office buildings.

Ireland is facing a crisis in the school buildingprogramme: an urgent increase in publiccapital investment is required, not only fornew construction but also to bring the exist-ing stock up to current educational and envi-ronmental standards.

Priorities

��Audit primary and secondaryschools nationally and identify defi-ciencies in terms of education bestpractice, current statutory regula-tions and building energy rating.

��Implement a National School Build-ing Plan to upgrade the entire edu-cation estate to 21st centurystandards by 2015.

�� Prioritise public capital investmentto deliver OECD standard projectedprimary and secondary school infra-structure.

��Explore alternative procurementarrangements to support deliveryof necessary investment in newschool infrastructure to meet 2015and 202 projected demand.

��Review design briefs vis-a-viscurrent international best practiceand emerging standards, includingthe role of school buildings in thecommunity.

��Review building space standardsand construction budgets to em-phasize long life and design quality,and to deliver whole-life cost effi-ciencies to the exchequer.

“... education at every level is boththe cause and the consequence ofnational renewal... it is down to atest of national will to invest in thefuture; to rediscover those thingsfor which this country has beenrightly celebrated.”

Lord David Puttnam


C O M M U N I T Y F A C I L I T I E S

Ireland’s stock of public buildings - govern-ment and local authority offices, garda sta-tions, courthouses, libraries, coastguardstations, fire stations, etc. - is an essential in-gredient of the state’s physical capital andlocal community infrastructure.

The economic and social value of these stateassets must be protected, so that the benefitsto their communities are optimised goingforward. However there is currently no regis-ter of the stock of buildings in public owner-ship, what condition they are in, and what isrequired to bring them up to current stan-dards.

Revisions to building regulations require allexisting public buildings to be retro-fitted andupgraded to comply with current standards,including energy efficiency. And the 2005Disability Act requires all public buildings tobe universally accessible, so that services areequally available to all.

Investment in this ‘soft’ infrastructure playsan essential role in promoting regional devel-opment, local economic growth and employ-ment; both directly in small-scale const-ruction projects, and their knock-on impactson many sectors of the wider economy.

Priorities

��Audit public buildings nationwideand identify deficiencies in terms oflocal community requirements andcurrent statutory regulations.

��Prioritise investment in capital in-frastructure to deliver 21st. centurystandard garda stations, court-houses, fire stations, local areaoffices, libraries, harbours, etc.

��Advance procurement and deliveryof major capital projects, includingThe National Archive, The NationalLibrary, Thornton hall, MunsterPrison, etc.

��Prioritise a retro-fit programme toupgrade all public buildings tocurrent standards and regulations,including energy efficiency and theDisability Act 2005.

��Review design standards and con-struction budgets to emphasisedesign quality and achieve whole-life cost efficiencies.

��Explore alternative procurementmethods to support delivery of in-vestment in new built infrastruc-ture, and to achieve cost efficienciesfor the exchequer.

“A sustainable community is wellserved with public, private, com-munity and voluntary services thatare appropriate to people’s needsand accessible to all.”

EU Bristol Accord


A R T S & C U L T U R E

In today’s global economy, the creative indus-tries are one of the fastest growing sectors.Currently estimated at 7% of the world’sGDP, it is projected to rise by 10% per yearfor the foreseeable future.

Recent research highlights the importance ofour arts and culture infrastructure to theknowledge economy, and in attracting inwardinvestment and the talented workforce todrive these high technology industries.

Ireland’s stock of cultural infrastructure isalso a key driver of tourism: in major citiesinternationally, cultural tourism is estimatedto be responsible for as much as 40% of allannual visitor arrivals.

Notwithstanding major investment in the lastdecade, funding continues to delay key proj-ects and there are ongoing roadblocks to thedevelopment of community arts and culturedevelopments in the regions.

In addition to new work, there is a need forongoing capital investment to renew largenumbers of historic buildings with creativere-use solutions that ensure the ongoing sus-tainability of these national heritage assets.

Priorities

��

Undertake an audit of the nationalarts and cultural infrastructure andidentify deficiencies in terms of in-ternational standards and statutoryregulations.

��

Prioritise a works programme toupgrade all arts and cultural build-ings to current standards and regu-lations, including energy efficiencyand the Disability Act 2005.

��

Prioritise investment to deliver 21stCentury arts and cultural infra-structure to improve quality of lifeand attract inward investment, in-cluding tourism revenue.

��

Advance procurement and deliveryof major capital projects, includingThe National Museum, The Na-tional Gallery, The National ConcertHall, Abbey Theatre etc.

��

Advance investment in the NDPculture sub-programme to upgradecultural facilities in the NSS Gate-ways, to provide regional access tothe arts and to develop tourism

��

Explore alternative procurementarrangements to support invest-ment in new public building infra-structure and achieve costefficiencies for the exchequer.

The strategic rationale for invest-ment in the Culture Sub-Pro-gramme lies in the need to protectand showcase our cultural her-itage, both for the benefit ofpeople today and of future gener-ations.

National Development Plan 2007-13



T O U R I S M & L E I S U R E

The Smart Economy Framework sets out ob-jectives to invest in the State’s sport andleisure infrastructure, not only to improvequality of life but also to develop tourism.

Tourism is one of the most important areasof the global economy and the National De-velopment Plan notes the importance oftourism as a major instrument of regional de-velopment. Ireland’s tourism sector has thepotential to contribute significantly togrowth, not only in towns and cities but alsoin rural parts of the country where othersources of investment are limited.

A commitment has been made under theNDP to upgrade facilities under the TourismDevelopment Programme. Yet, recent reportsindicate that there is no register of our stockof sport and leisure buildings, what conditionthey are in, and what is required to bringthem up to current standards.

The success of Ireland’s tourist industry is in-extricably linked to the quality of our physicalinfrastructure and our environment, bothnatural and man-made. Failure to deliverworld-class environments and visitor facilitieswill have negative impacts on tourism and, byextension, on the economy as a whole.

Priorities

��Audit the national tourism andleisure infrastructure to identify de-ficiencies in terms of internationalstandards and current statutoryregulations.

��Develop tourism and leisure mas-terplans to identify flagship projectswith the greatest potential for localeconomic growth and job creation.

��Advance procurement and deliveryof capital projects under the 2008Sports Capital Programme toupgrade Ireland’s regional and na-tional sporting infrastructure.

��Advance the design and procure-ment of priority projects under theNDP Tourism Development Plan.

��Continue investment in the LocalAuthority Swimming Pool Pro-gramme to increase public partici-pation and promote public health.

��Explore alternative procurementarrangements to support deliveryof investment in infrastructure andachieve cost efficiencies for the ex-chequer.

"...the Government is acutelyaware of the need to continuallyinvest in Ireland’s tourism productoffering if we are to sustaingrowth in visitor numbers into thefuture."

Minister Martin Cullen, TD


D E L I V E R I N G T H E V I S I O N

The 2009 CIC submission to Government“Jobs and Infrastructure - A Plan for National Re-covery” makes the economic, social and envi-ronmental case for a construction stimuluspackage: to save jobs in the industry and as-sociated sectors; to stimulate the widereconomy; and to create the infrastructureand environment required to support theGovernment’s “Smart Economy” frameworkpolicy.

.

As outlined in this report, there are urgentdemands for investment across all sectors.The CIC urges Government to review theseas the basis for an ambitious capital invest-ment programme going forward.

It is recommended that most of the invest-ment should come from public funds.However, the CIC has also proposed anumber of alternative funding solutions,where collaboration with the private sectormay represent the best option for the ex-chequer in terms of quality, effectiveness, de-livery and value for money. Full details are setout in the 2009 CIC report.

“The lesson from the past is thatproviding a clear sense of directionby setting out a long-term visionand a set of goals, and by priori-tising the resources needed toachieve them, secure immediategains from increased confidenceand a determination to deliver.”

Brian Cowen TD, Taoiseach

Nevertheless, as the 2009 report argues, in-vestment from these alternative sourcesshould be additional to the public capital pro-gramme, and not seen as an opportunity toreduce existing state allocations.

The report also stresses that investment ininfrastructure should be focused on the deliv-ery of both short, and long-term, value to theexchequer; projects should be prioritisedbased on sustainable needs, return on invest-ment, employment potential, and ability toget to site quickly..

This requires an urgent review of both theNational Development Plan and the NationalSpatial Strategy, to achieve an integrated ap-proach to the planning and delivery of key in-frastructure.

In summary, the CIC, recommends that Gov-ernment demonstrates a commitment to apublic capital budget of at least €5.5bn perannum for the period 2011 to 2016, and toincrease the amount whenever possible.

It also urges Government to utilise today’seconomic downturn to achieve efficiency inthe delivery of infrastructure at historicallylow costs and excellent value for money.

This investment would save a possible totalof 120,000 job losses over the next twoyears, and retain vital skills in Ireland, both inconstruction and the wider economy.

The key message is that now is the time forGovernment to demonstrate the political willto plan and invest in the future, and to leadIreland from recession to recovery. By anymeasure this would be a win-win investment.


E X E C U T I V E S U M M A R Y

Since 2007, the construction sector has ac-counted for half of the decline in jobs in theIrish economy. In the absence of politicalcommitment to investment in infrastructureand the environment - and advancing currentproject pipelines - a further 120,000 jobs willbe lost in the next two years.

The CIC urges Government to consider theimpacts, both social and economic, of thisloss of employment and vital skills in one ofthe key sectors of the Irish economy.

The CIC also questions the wisdom of with-drawing investment in infrastructure at thevery time when a construction stimuluswould lead the wider economy from reces-sion to recovery, and fill the infrastructuregaps which have impacted on both ourquality of life and economic competitiveness.

A window of opportunity now exists to planand build the projects identified in thisreport, which are urgently needed and guar-antee a long-term return to the State.

Postponing key projects - and the lead-inplanning and design work necessary for thetimely delivery of these projects in the future- is neither sustainable nor consistent withGovernment policy on job creation, eco-

nomic recovery or the “Smart Economy”.

The CIC’s 2009 report noted that for every€1bn invested, the actual cost to the Govern-ment is €490m, and vital infrastructure is de-livered for public benefit. Conversely, every€1bn cut from the capital programme costsgovernment €510m in reduced tax receiptsand increased welfare payments, and withoutany infrastructure gain.

In summary, the facts are:

In its 2006 review of the NDP, the ESRI rec-ommended an ongoing public capital pro-gramme of €8.6bn. Planned exchequerinvestment for 2011 has been reduced to€5.5bn.

CIC research on current project pipelines in-dicates that expenditure in 2011 and 2012will fall well short of these reduced targets,effectively winding down the NDP.

Despite the decline in tender prices, reduc-tions in the capital budget of this magnituderepresent a significant diminution in the infra-structure investment targets in the NDP.

The current absence of lead-in planning anddesign will affect the State’s entire infrastruc-ture development programme going forward.

Investment would not only create employ-ment, it would reduce the Exchequer’s socialwelfare bill and help revive confidence andactivity in the wider economy.

The Construction Industry Council is callingon Government to reaffirm the importance ofthe construction sector by investing in the pri-ority actions set out in this report.

“Every €1bn cut from the capitalprogramme costs the Government€510m in reduced tax receipts andincreased social welfare payments,without any infrastructure delivery.”

CIC 2009 Report to Government

�� Prioritise investment in infrastructure to restore the constructionsector to its optimum level of €18bn and 250,000 jobs in direct and in-direct employment (equivalent to 12% of 2008 GNP).

�� Maintain the Public Capital Programme at a minimum of €5.5bn perannum over the period 2011 to 2016, and increase investment wher-ever possible.

��Prioritise investment in infrastructure based on employment generat-ing potential, both in the construction phase and long-term whole-lifebenefits to society and the economy.

�� Adopt an integrated approach to planning and infrastructure deliverythrough an urgent review of both the National Development Plan andThe National Spatial Strategy.

�� Utilise innovative mechanisms to finance the delivery of infrastruc-ture, including off-balance sheet funding such as the CIC proposed in-frastructure bond.

��Ensure that revenue raised through alternative funding mechanisms,is additional to the Public Capital Programme.

�� Reinstate rolling five-year capital investment envelopes to allow gov-ernment departments plan and deliver projects effectively.

�� Review planning and public procurement procedures to reduce ten-dering costs and effect efficiencies in delivering infrastructure.

�� Use the current recession in construction to deliver first class publicinfrastructure and high quality living environments at excellent valueto the exchequer.

�� Retain vital skills in Ireland, save job losses in construction and thewider economy, and stimulate growth to lead Ireland from recessionto recovery in 2011.


NOTES


CREDITS

CoverNavan Civic Space, Navan, Co. Meath,Photo: Paul Tierney

Page 6Sean Treacy House, Buckingham Street, Dublin 1Photo: PKA

Page 8M4 Airport Interchange Bridges, DublinPhoto: Ros Kavanagh

Page 10Father Collins Park, Belmayne, Co. DublinPhoto: Anthony Woods

Page 12Eyre Square, GalwayPhoto : Ros Kavanagh

Page 14LUAS terminus, Clondalkin Dublin 12Photo: RPA

Page 16Water tower at Sillogue, Co. DublinPhoto: PKA

Page 18Elm Park, Merrion Road, Dublin 4Photo: Bucholz McEvoy

Page 20Herberton - Fatima Mansions Regenerations,Dublin 8Photo: Metropolitan Workshop

Page 22National Blood Centre, James's Street, Dublin 8Photo: Scott Tallon Walker

June 2010 Construction Industry Council 36

Page 24Loreto Community School, Milford, Co.DonegalPhoto : Ros Kavanagh

Page 26Westport Fire Station, Westport, Co. MayoPhoto : Ros Kavanagh

Page 28Lewis Glucksman Gallery, University CollegeCorkPhoto : Paul Keogh

Page 30Thomond Park, LimerickPhoto : Press 22

Page 32Dunshaughlin Pastoral Centre, Dunshaughlin,Co. MeathPhoto : Richard Hatch Photography

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