THE CONS TRUCTION SECTOR
IN IRELAND
Market study
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THE CONSTRUCTION SECTOR IN IRELAND
December 2017
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CONTENT
1. Preface ... 3
2. Economic Context ... 4
3. Construction – General Overview ... 6
4. Main Sectors ... 8
4.1 Commercial Sector 8 4.2 Residential Sector 9 4.3 Transport Infrastructure 12 5. The Government Plans ... 14
5.1 Rebuilding Ireland 14 5.2 Construction 2020, A Strategy for a Renewed Construction Sector 16 5.3 Infrastructure and Capital Invest 2016-2021 16 5.4 Dublin City Development Plan 2016-2022 18 5.5 National Planning Framework: Ireland 2040 - Our Plan 20 6. Associations and Federations... 23
1. PREFACE
Our intention with this report is to give a brief overview of the development of the Irish construction sector, in order to provide you with an initial introduction into the market.
We will look at the Irish Economy from 2008 through to the present time, examining the Irish construction sector before and after the economic recession.
We will later take a more in depth look at the key areas within the sector – Residential, Commercial and Transport Infrastructure and how the government plans to develop the market in the coming years.
The macroeconomic indicators, the need for new houses and offices space, together with the plans of the Irish Government, give a clear indication that numerous opportunities lie ahead for companies supplying the construction sector.
If you are active in the sector and want to capture a share of this positive momentum, we believe it is now time to take action and explore what the Irish market has on offer for your company.
FLANDERS INVESTMENT & TRADE December 2017
2. ECONOMIC CONTEXT
With a GDP growth forecast of 4.9% in 2017 (3.9% in 2018), a significant expansion of the labour market, employment expected to grow by 2.6% in 2017 and an unemployment rate that should average 6.2% in 2017 (5.6% in 2018), the Irish economy is set to remain solid over the coming years.
Source: Central Bank of Ireland, Quarterly Bulletin, QB4 – October 2017
The high growth of the Irish economy is mainly driven by domestic factors, in particular by a strong domestic demand, that grew robustly in 2016 and has maintained a considerable positive momentum in 2017.
According to The Economic and Social Research Institute: “the improving household balance sheets and falling unemployment are expected to support solid consumption growth over the forecast horizon.
Upward trends in underlying investment activity, particularly construction, look set to continue into 2017 and 2018 according to a variety of indicators”.
This is not the first time Ireland shows its economic strength. From 1995 – 2007, Ireland was referred to as the ‘Celtic Tiger’ and experienced growth figures between 5 and 6% during that time frame. The impressive and rapid growth in the Irish economy was short-lived and led to a later collapse which entered Ireland into a severe recession in 2008 and an economic depression in 2009.
During the recession there was a distinct decline in construction activity. From 2011 until the end of 2013 the European Union and the International Monetary Fund (IMF) provided financial assistance to Ireland and in December 2013, Ireland successfully completed the EU-IMF financial assistance programme. The majority of conditions under the recovery programme were met and investors’ confidence was restored.
Although Ireland is not back to the position it was at the height of the Celtic Tiger in 2007, it is now experiencing a rebirth. An article in The Economist referred to Ireland as the ‘Celtic Phoenix’, rising from the ashes.
3. CONSTRUCTION – GENERAL OVERVIEW
An average annual growth of 9% for the construction sector is forecasted for the coming years, reaching around 20 billion in output for 2020.
A report1 published at the end of 2016 by KMCS, shows that after the peak in 2007, with an output of over
€38 billion, representing around 24% of GDP, the output of the sector dramatically fell to just over
€9 billion in 2012.
We started to see a small recovery taking place in 2013, then accelerating in 2014 with output rising to
€11 billion (7.1% of GNP). Also, in 2015 this positive trend continued, with an output of approximately
€12.5 billion, which represented an increase of 14% over 2014.
Last year, and in particular, during the second quarter of 2016, the volume of output in building and construction increased by 6.3% when compared with the preceding period.This reflects increases of 10.5%
and 8.1% respectively in the volume of residential and non-residential building work. The volume of civil engineering work increased by 4.2%. The change in the value of production for all building and construction was +6.2%. Comparing year 2016 to year 2015, the rise in the volume of output reflects year-on-year increases of 31.5% and 9.4% respectively in residential and non-residential building work, while the value of civil engineering work increased by 8.7%.
Source: Construction Market Overview & Outlook Q4 2016, KMCS
1Construction Market Overview & Outlook Q4 2016, KMCS http://www.kmcs.ie/KMCSConstructionMarketOverview2016.pdf
In the second quarter of 2017, the volume of output in building and construction increased by 1.9% when compared with the preceding period as shown by the CSO Production in Building and Construction Index.
This reflects increases of 27.7% and 1.1% respectively in the volume of residential building work and non- residential building work. Output in civil engineering decreased by 2.6% in the quarter.
Although we are looking at a strong growth in the coming years, it’s important to recognise that the sector is also facing some challenges and gaps: the shortage in skilled craft workers and professionals, the lack of speculative investments, the funding for large scale developments and the already felt impact of the Brexit referendum.
Another important aspect is that since the crash in 2008, the drop in the construction of private and public residential units has precipitated the crisis to a point where there is an increasing lack of supply of houses.
To tackle this issue the Irish Government launched the €5.35 billion ‘Rebuilding Ireland - Action Plan for Housing and Homelessness’2, in July 2016. The situation looks more positive for the commercial sector. A report published by Aecom, Ireland Annual Review for 20173, shows that strong demand for offices will see the commercial office sector boom continuing across the Dublin market, particularly in the city centre.
Although the Irish economy is facing several challenges relating to infrastructure projects, and funding is needed to increase the development of the commercial and residential sectors, the solid economic recovery is set to continue over the coming years and will have positive implications on the growth of the construction sector.
2 The Government Action Plan for Housing and Homelessness www.rebuildingireland.ie
3 Aecom Ireland Annual Review 2017, AECOM https://aecomtls.azurewebsites.net/annualreview/
4. MAIN SECTORS
4.1 COMMERCIAL SECTOR
The growing construction industry output and the increasing economic activity is shaping a new Dublin. In particular the capital’s business district, which is fast becoming home to the world’s leading businesses giants who continue to expand and invest in Ireland. The building of commercial office space and fit-outs in the greater Dublin has grown in the past years and is now extending into the urban centres; hospitality and retail activities are increasing and the Industrial Development Agency (IDA) continues to attract multinationals who keep on investing in Ireland, particularly in the ICT and Life Sciences sectors.
According to the Society of Chartered Surveyors Ireland (SCSI), although the growth rate in 2016 was more moderate compared to 2015, the Irish commercial property market continued to perform strongly in 2016, with growth recorded across all sectors. The office sector investments for Dublin City and County Dublin in 2016 show that these are the strongest performing centres in the country. The main regional urban areas, such as Cork, Galway and Limerick also saw positive commercial activity.
In terms of Office Outlook for 2017, as confirmed by SCSI: ‘’Investment sentiment in the Irish commercial office sector remains strong for 2017. While supply of prime office accommodation is low particularly in Dublin City centre, there is a substantial supply of new office space in Prime Grade A accommodation coming to market over the coming three years which will serve to retain activity and demand in the sector4’’.
To have a better overview of this year’s commercial and retail sector trend, we refer to an analysis from CIS (Construction Information Services), which states that an overall decrease of 2% is recorded in the value of projects on-site in Q1 2017 when compared with the same period last year. However, the Dublin market continues to perform strongly with a 7.5% increase in the value of projects on-site. Of the 137 projects which went on site in Q1 2017, only 32 were new builds with the remainder represented by change of use, extension or renovation/refurbishment.
4 SCSI – Residential and Commercial Property Review and Outlook 2017 https://www.scsi.ie/documents/get_lob?id=1136&field=file
Source: CIS Construction Market Review Q1 2017
In general, the volume of projects granted planning in Q1 2017 in the commercial and retail sector has remained relatively static whereas the volume of projects submitted for planning has increased by 8% over the same period last year
Source: CIS Construction Market Review Q1 2017
4.2 RESIDENTIAL SECTOR
During the recession years, the residential sector has seen a drastic drop in construction of private and public residential units, contributing to current soaring house prices, mainly in the greater Dublin area. This sector has been slow to recover from the economic crash.
In 2015, Irish housing completions stood at 12,666 – still well short of the 25,000 estimated necessary to meet natural demographic demand. In comparison, housing completions equalled 93,419 in 2006, 78,000 in 2007 and 51,700 in 2008. The subsequent economic downturn caused a rupture across the industry. Many workers were lost and finance for developments dried up. In addition to that, compounding the problem
is a mismatch in housing supply, with high availability in sparsely populated areas and an acute lack of availability in densely populated areas.
In an interview5 with the Irish Independent the former Minister for Housing, Planning and Local Government Mr Simon Coveney, described the housing situation as a national emergency. As we will analyse in the next chapter, the response of the Government has been the ‘Rebuilding Ireland: An Action Plan for Housing and Homelessness’, an initiative that plans 25,000 new homes to be built every year until 2021 and over €5.35bn to be spent on 47,000 social housing units by 2021.
In this respect, it’s necessary to consider also the purchasing power of the Irish people and the costs of these new homes. In November 2016, the Central Bank announced revisions to its mortgage lending rules which were initially introduced in 2015 in order to provide considerable financial and economic stability.
The revisions, which eases mortgage deposit restrictions, will in particular allow greater access for first time buyers to purchase homes.
In terms of Residential property sector, the 2017 report on residential and commercial property from Society of Chartered Surveyors shows the performance of the residential and commercial property market for last year. To quote the SCSI, ‘’the number of residential units granted with planning permission has continued to increase during 2016. A total of 12,046 units were granted with planning permission during Q1 to Q3 2016.
This represents a 33% increase on the same period in 2015 and a 125% increase on the same period in 2014.
By the end of Q3 2016, the number of units granted planning permission in the Rest of Leinster and Connacht/Ulster regions had already exceeded the 2015 annual totals. […] The level of development activity is continuing to grow year-on-year. While the Dublin Region had the greatest increase in 2015 with 129%
growth on 2014, highlighting the low base at which it was starting, there was a 27% year-on-year increase in development activity in 2016 (Q1-Q3).’’
5 http://www.independent.ie/business/personal-finance/property-mortgages/emergency-powers-will-bypass-planning-to-ease-house-crisis-34721261.html
In a recent interview6 the Construction Industry Federation (CIF) Director of Housing & Planning Hubert Fitzpatrick, tries to clarify the future new homes sector. Mr Fitzpatrick affirms ‘’we are seeing a significant increase in building activity, we have anticipated we could hit 18,000 completions in 2017, which would be more than 40% increase on where we would have been two years ago. We will have a higher level of completions coming through in the latter half of 2017 than we did in 2016, and a lot of that will be driven by initiatives such as the Help-to-buy scheme, which kicked-started commencement of new units post announcement’’.
With particular regard to the action plan Rebuilding Ireland, Mr. Fitzpatrick comments ‘’Clearly the initiative included in Rebuilding Ireland are now having an impact. We did state that it could be up to 2018 before we would see the real impact of the new completions as a result of the initiatives that were included in that particular programme’’.
In general, looking at the indices of total production in building and construction for the residential sector by year, we notice a positive increase as shown on the figure below:
Source: CSO
In October this year, after the announcement of the budget for 2018, the Construction Industry Federation7 has summarised in four main points how the budget will affect the housing and residential sector:
up to €750 million of the Ireland Strategic Investment Fund available for commercial investment in housing finance. The funds announced will be made available to a new vehicle to be known as Home Building Finance Ireland or HBFI. HBFI CIF Economic & Policy Research 3 will increase the availability of
6 The interview has been conducted by Ms Carol Tallon for Construction, the official magazine of the Construction Industry Federation. Published in the July/August 2017 Edition.
7 BUDGET 2018 – Analysis for Construction - https://cif.ie/2017/10/12/budget-2018-analysis-construction/
debt funding on market terms to commercially viable residential development projects whose land owners want to build homes
‘Rebuilding Ireland’: an extra €500 million for the direct building programme which will see an additional 3,000 new build social houses by 2021, increasing the existing Rebuilding Ireland target of social housing homes to 50,000, of which 33,500 will be delivered through construction
additional Exchequer funding of €75m for a second phase of the Local Infrastructure Housing Activation Fund (LIHAF), which will also support the local authority delivery of affordable housing. When combined with the local authority matching contribution, this fund has the potential to provide approximately 5,000 homes at more affordable levels by 2021
the Help to Buy Scheme has been retained
4.3 TRANSPORT INFRASTRUCTURE
Figures show that Ireland, as a proportion of GDP, invests considerably less in transport infrastructure compared to the other EU28 states. While increased demand for transport is driven by economic growth, investment in the sector is still constrained.
A deep underinvestment in Irish infrastructure is highlighted as stated by the CIF “in the mid-term review of the Public Capital Programme, of the estimated additional €5.14 billion allocated, €2.2 billion went to housing. Of the remaining balance, only €1.15 billion could be spent on productive social infrastructure.
The remainder was spent on depreciation of existing assets. Based on the government’s recent Summer Economic Statement announcement, the CIF has identified only €350 million available per year up to 2021 for new and essential infrastructure projects’’.
A solution identified by the CIF would be the establishment of a National Infrastructure Commission to advise the political and civil system on the delivery of world-class infrastructure and of a budget to allow the smooth running and the protection of the investment projects. The Capital Plan, which will be analysed in the following chapter, is an important Government measure that must anticipate economic, population and technological changes in the economy over the long-term.
According to a report from Engineers Ireland, the country’s current under-efficient transport infrastructure will not facilitate the ambitions of Ireland’s National Planning Framework and cannot cater for the projected increase in the island of Ireland’s population. Increased capital investment and other measures are required immediately to eradicate congestion and fulfil the State’s obligations to the health and well- being of its citizens. Embracing new technology in digital information systems and vehicular assets will in turn lead to a more sustainable transport infrastructure. There is a need to prioritise specific transport projects in the areas of air, rail and road to improve the connectivity of Ireland’s transport network.
An investment of €3.6 billon under the Capital Investment Plan 2016 - 2022 will enable a number of major public transport projects to proceed, and it will also fund additional capacity to meet existing commuter needs. Under the Capital Plan, construction of a metro link between the City Centre, Dublin Airport and Swords will commence in 2021.
Source: Infrastructure and Capital Investment 2016-2021
Currently, there are some important projects that need to be put in place, for example the Metro North, the M20 motorway from Cork to Limerick, more investment in the light rail system, the River Shannon water pipeline, a rail link to Dublin airport, etc. but mostly, we can’t forget the importance of investing in the regional cities. As stated by the President of Consulting Engineers of Ireland Mr Tom Horan “the country will not thrive in the long run if a focus is maintained only on Dublin […] a long-term commitment is required to build our regional cities of Cork, Limerick, Galway and Waterford as realistic counterweight to Dublin and as attractive centres for growth8’’.
In conclusion, the overall opinion is that an implementation and more efficient allocation of capital investment on the infrastructure, transport and communication sectors is vital for the future of the country and a national oriented, long term strategy for this industry has to be build and put in action.
8 Irish Building Magazine, Professional Groups’ Leaders Discuss Infrastructure Investment, 2017
5. THE GOVERNMENT PLANS
5.1 REBUILDING IRELAND
In July 2016, the Irish Government launched its ‘Rebuilding Ireland - Action Plan for Housing and Homelessness9’.
This Plan is a clear response to the housing shortage and the homelessness problem in Ireland. The goal is to increase and expedite the delivery of social housing units, boost private housing construction and improve the rental market.
The mix of public housing completions and social housing rental models produced a high level of mixed community type housing up until about 2008 when around 11,000 units were delivered. Then, the economic contraction and the collapse in 2008 brought a severe decline in the number of house completions within the private and social sectors especially in the main cities and urban areas where they have continued to be needed.
The Irish economy has recovered quickly, with an increasing population and employment. However, those two factors mean also a significant increase in the need for new homes to meet the demands of a growing and working economy.
According to the new Minister for Housing, Planning, Community & Local Government, Mr Eoghan Murphy, the multi-stranded, action-oriented Rebuilding Ireland Action Plan aims to reverse the chronic under-supply of new homes that is making new home purchase and rents increasingly unaffordable and is driving additional households into homelessness. It is designed to address all tenure types - social, private and rental - and to tackle homelessness comprehensively, by setting ambitious targets to, inter alia:
• Double the annual level of new homes built to 25,000 by 2020;
• Deliver an additional 47,000 social housing units in the period to 2021;
• Make the best use of the existing housing stock;
• Lay the foundations for a more vibrant and responsive private rented sector
The success of this ambitious objective would be the result of a collaborative process involving Government departments, local authorities, housing agencies, voluntary bodies and the construction sector for a total scale of investment of around €5.5 billion in social housing and housing infrastructure.
A fundamental factor to be considered is also the Population Distribution in the Country: approximately 30% of the total population lives in Dublin and, as a result, the most significant accommodation pressures
9 Rebuilding Ireland is an initiative of the Government of Ireland. More information about the Action Plan can be found at the following website www.rebuildingireland.ie
are being experienced in this area. Balancing demand and supply in and near Dublin and other areas of high demand such as Cork, Limerick, Galway and Waterford, is a major objective of this Action Plan.
The interactive Housing Land Map10 provides users with details of residentially zoned lands, local authority owned and Land Aggregation Scheme sites, publicly owned sites with potential for housing development, and active private housing construction sites in the Dublin region. It represents a vital initial step in the new State Housing Land Management Strategy being developed under Ireland 2040, the National Planning Framework which will be discussed in a later section.
Rebuilding Ireland was published just over a year ago and on 14 June 2017 a new Government led by current Taoiseach (Prime Minister) Leo Varadkar was elected. The Plan is still a high priority for the new Government which had recently launched a Public Consultation in order to analyse the progress of the actions and reflect on what additional measures may be required.
10 The Interactive Map is available at the following website www.rebuildingireland.ie/news/rebuilding-ireland-land-map
5.2 CONSTRUCTION 2020, A STRATEGY FOR A RENEWED CONSTRUCTION SECTOR
In 2014, the Irish Government published a long-term Strategy for the construction sector starting from all of the errors that have been made in the past, with the aim of creating a renewed and vibrant construction industry for the future of Ireland.
The plan is focused on all aspects of the construction sectors, including returning the economy to full employment by 2020, and in doing so, replacing all of the jobs lost during the crisis.
In essence “the Strategy aims both to increase the capacity of the sector to create and maintain jobs, and to deliver a sustainable sector, operating at an appropriate level. It seeks to learn the lessons of the past and to ensure that the right structures and mechanisms are in place so that they are not repeated”.
‘Construction 2020’, laid out an action plan where among the priorities identified in the strategy are actions to improve the availability of development finance and innovations in Government procurement, to find the correct approach to the Housing problem, to improve regulations, to ensure that appropriately-skilled workers are available as the levels of construction activity increases and to create sustainable planning and communities. In total it sets out 75 action points, a road map that is focused on finding solutions to the main issues in the construction sector.
5.3 INFRASTRUCTURE AND CAPITAL INVEST 2016-2021
In September 2015 the government launched the six-year ‘Infrastructure and Capital Investment Plan 2016–
202111’, which set out a €42 billion framework for infrastructure investments in Ireland.
According to the information provided from the Department of Public Expenditure and Reform, since its approval and publication in 2015 the plan has been reviewed and “an additional €5.14 billion in Exchequer capital investment was originally allocated in the Summer Economic Statement (SES) in June 2016 for increased public capital investment over the period of the Capital Plan. A further €1.5 billion has been allocated by Government, as set out in the 2017 SES, over the period 2019-202112’’.
As initially planned, the €27 billion Exchequer component of the Capital Plan (as shown in figure below), supplemented by a new €500 million phase of the PPP programme, is primarily targeted at addressing priority needs in transport, education, housing and health care. Investments will be made in public transport, including commencement of a metro project in Dublin, new and upgraded schools, Primary and Continuing Care health facilities, and new social housing will be delivered. Investments will also be made to
11Infrastructure and Capital Investment Plan 2016–2021, Department of Public Expenditure and Reform, September 2015. www.per.gov.ie/wp- content/uploads/Capital-Plan-Final.pd
12 http://www.per.gov.ie/en/capital-investment-plan-2016-2021/
mitigate risks from flooding. There will also be continued large investment in job creation and export rich enterprises such as manufacturing, services, agriculture and tourism.
Source: Infrastructure and Capital Investment 2016-2021
The remaining €14½ billion non-Exchequer component of the Capital Plan will be delivered by the State companies, which include ESB, Irish Water, and Ervia (formerly Bord Gáis Éireann). These investments will primarily be targeted at energy infrastructure development, including renewable energy and smart metering, and on the enhancement of water and wastewater infrastructure as shown in the following figure.
Source: Infrastructure and Capital Investment 2016-2021
As stated in the official document, in regards to the construction sector, although this Capital Plan comes against the backdrop of some recovery in the construction sector, important challenges and risks remain for that sector which emerge from the impact of the serious financial and capacity losses it experienced
during the financial crisis of 2009. For this reason the Government has introduced a wide ranging set of policy measures to encourage competition, alleviate some costs associated with tendering for public contracts and help ensure the financial stability of bidding firms.
As the Irish economy continues its strong recovery, the plan prioritises spending on areas of greatest needs for the Country. In summary, the investment objective of the plan include high quality of infrastructure and transport (for the road network and public transport as well as the construction of a metro in Dublin), improving education facilities to meet the demographic demand for school places, enterprise support, good and sustainable quality of housing, investing in modern and efficient healthcare provision, create a low carbon, climate-resilient and environmentally sustainable economy by 2050, etc.
During the announcement of the Budget for 2018, Minister of Finance Paschal Donohoe, has confirmed the increased capital spending (including spending on schools, hospitals and roads) by €790 million. This rise will bring the spending on projects to a total of €5.3 billion in 2018.
5.4 DUBLIN CITY DEVELOPMENT PLAN 2016-2022
The Dublin City Development Plan (2016-2022) was adopted by Dublin City Council during a Special Council meeting on 23rd September 2016 and came into effect on 21st October 2016. The official definition states that the plan‘’sets out policies and objectives to guide how and where development will take place in the city over the lifetime of the Plan. It provides an integrated, coherent spatial framework to ensure the city is developed in an inclusive way which improves the quality of life for its citizens, whilst also being a more attractive place to visit and work’13’.
13 www.dublincity.ie/main-menu-services-planning/city-development-plan
Source: Dublin City Development Plan 2016-2022 Written Statement Volume 1
Priorities, future projections and insights arising from the positive growth that is happening in Dublin are some of the main reasons why the Government has started this ambitious project. The preparation of this plan included pre-draft consultation with communities throughout the city, infrastructure providers, sectoral groups, statutory agencies and adjoining local authorities; over the course of the City Development Plan preparation process around 2,000 submissions were received from the general public and other stakeholders.
The Written Statement14, gives a clear explanation and overview of the main goals of the plan, setting out the core strategy and the aims of the Council for the proper planning and sustainable development of the city. According to Mr Owen P. Keegan, Chief Executive of Dublin City Council, the strategy of the new Plan is focused mainly on the principals of sustainable communities, enterprise and creativity. It seeks to create a quality, connected and resilient city. The main objective is to create a city that will facilitate economic growth, enterprise and employment generation, socially inclusive neighbourhoods (including much needed new homes) in a coherent, sustainable manner for the benefit of the city, the region and the country.
14 Dublin City Development Plan 2016–2022, Written Statement
http://www.dublincity.ie/sites/default/files/content/Planning/DublinCityDevelopmentPlan/Written%20Statement%20Volume%201.pdf
Spurce: IBEC
The Government and in particular Dublin City Council, sees the current return to economic growth as an opportunity to create a vision for the city not only for the six-year lifetime of the development plan, but for the next 25 to 30 years. The vision for the city presented in the Written Statement is ambitious and describes the future of Dublin as one of the strongest, developed and solid capitals in Europe.
It states that “within the next 25 to 30 years, Dublin will have an established international reputation as one of Europe’s most sustainable, dynamic and resourceful city regions. […] It is the core strategy of this development plan to achieve the vision in a manner that is consistent with the guidance, strategies and policies at national and regional level. In particular, the National Spatial Strategy 2002 – 2020 (NSS), the Regional Planning Guidelines for the Greater Dublin Area 2010 – 2022 (RPGs) and the government’s Smarter Travel – A Sustainable Transport Future 2009 – 2020, all guide and direct the fundamentals of the City Council’s housing, settlement and retail strategies, which in turn are integrated into the overall development plan vision and core strategy for 2016 – 2022’’.
5.5 NATIONAL PLANNING FRAMEWORK: IRELAND 2040 - OUR PLAN
In September 2017, the Irish Government published “Ireland 2040 – Our Plan15”. At the beginning of the year, the Government consulted with people across Ireland through a national campaign asking for views and opinions about making a plan for Ireland. Thousands of submissions were received, reviewed and considered before a draft plan was drawn up.
Today, according to the draft document recently published by the Department of Housing, Planning and Local Government, the goal of the Plan is to ‘provide a National Planning Framework to guide national, regional and local planning and investment decisions for the years ahead, building on and co-ordinating
15National Planning Framework - Ireland 2040 Our Plan, Department of Housing, Planning and Local Government. http://npf.ie/wp- content/uploads/2017/09/Ireland-2040-Our-Plan-Draft-NPF.pdf
the existing regional and local authority planning processes. Regional Spatial and Economic Strategies (RSES’s) and City and County Development Plan16’.
Source: Ireland 2040 Our Plan Draft National Planning Framework
The main objectives of the National Planning Framework are to guide the future development of Ireland, taking into account a projected 1 million increase in the country’s population, the need to create 660,000 additional jobs to achieve full employment and a need for 550,000 more homes by 2040. With particular regard to the increasing population of 1 million expected in the coming years, the objective is to prevent the build-up in the capital thanks to the development of other cities around the country. In terms of overall population growth 25% is planned for Dublin, 25% across the other four cities combined (Cork, Limerick, Galway and Waterford). The goal is to enable all four cities to grow their population and jobs by 50-60%
and become cities of greater scale, (i.e. growing by twice as much as they did over the previous 25 years to 2016). The remaining 50% of growth to occur in key regional centres, towns, villages and rural areas, will be
16 Department of Housing, Planning and Local Government, What is “Ireland 2040 – Our Plan” ?, www.npf.ie
determined in the forthcoming regional plans as for example the Regional Spatial and Economic Strategies (RSESs).
Source: Ireland 2040 Our Plan Draft National Planning Framework
Undoubtedly, this increase in numbers and the willing to spread the populations around the country means necessarily the development of a better national infrastructure grid in terms of mobility, communications, energy systems and essential public and community services and facilities. Brexit will also necessitate the improvement of ports and airports to facilitate faster transit times between Ireland and the EU.
This Framework seeks to ensure that, in addressing future change, Ireland will continue on a path of economic, environmental and social progress that will improve its prosperity, sustainability and well-being.
The final version of the National Planning Framework is expected to be finalised in December 2017, and will be accompanied by a 10-year National Investment Plan that will provide funding for long-term capital projects set out in the framework.
6. ASSOCIATIONS AND FEDERATIONS
Association of Consulting Engineers of Ireland (ACEI) – www.acei.ie Building Materials Federation (BMF) – www.ibec.ie/bmf
Construction Industry Federation (CIF) – www.cif.ie
Construction Information Services (CIS) – www.cisireland.com Construction Industry Register Ireland (CIRI) – www.ciri.ie Construction IT Alliance (CITA) – www.cita.ie
Construction Industry Council – www.constructionindustry.ie Central Statistics Office (CSO) – www.cso.ie
Engineers Ireland – www.engineersireland.ie Enterprise Ireland – www.enterprise-ireland.com Environmental Protection Agency (EPA) – www.epa.ie
Hardware Association Ireland (HAI) – www.hardwareassociation.ie Health & Safety Authority (HSA) – www.hsa.ie
IBEC – www.ibec.ie
Irish Concrete Federation (ICF) – www.irishconcrete.ie Irish Concrete Society (ICS) – www.concrete.ie
Irish Planning Institute – www.ipi.ie Irish SME Association (ISME) – www.isme.ie
NSAI (National Standards Authority of Ireland) – www.nsai.ie Property Industry Ireland – www.propertyindustry.ie
Royal Institute of the Architects of Ireland (RIAI) – www.riai.ie Society of Chartered Engineers of Ireland (SCSI) – www.scsi.ie Sustainable Energy Authority of Ireland (SEAI) – www.seai.ie
Disclaimer
The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this document. It is collected with the greatest care based on all data and documentation available at the moment of publication. Thus this publication was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or other specialized advice. Flanders Investment & Trade (FIT) accepts no liability for any errors, omissions or incompleteness, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned.
