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Dail Éireann · 2024-04-23

National Development Plan

FG Bernard Durkan · Kildare North

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Summary of this debate

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First is the availability of the workers we need to translate spending plans into delivery of homes and projects and the labour and skills shortages in our economy. The second issue, with which the Deputy will be familiar and which has been a real challenge, is the impact of inflation on the delivery of important projects.

We made a number of changes to the level of capital we are making available to Departments in the coming years and to our public sector frameworks for contractors and professionals to deal with the risks created by inflation. I would have to identity inflation as the biggest challenge we have faced, given the cost of raw materials we need to deliver homes has increased in the way it has, with a knock-on effect on many buildings our country expects us to deliver.

Built by scoring every sentence in the debate on how distinctive its language is, then quoting the highest-scoring ones back word for word and in the order spoken. Nothing is paraphrased or invented — if a sentence appears here, it was said in the chamber. Drawn from 308 words across 6 contributions by 2 speakers.

Most used terms in this debate

How often each word appears across the whole debate, ranked by how distinctive it is to this debate rather than common to all parliamentary language.

projects 7
inflation 4
delivery 6
drill 2
anecdotal 2
compare 2
progress 4
challenge 3
impact 4
jurisdictions 2
professionals 2
made 5

The full debate

All 6 contributions, start to finish, in the order they were made. The one you came here for is highlighted.

FG Bernard Durkan this contribution

This question seeks to ascertain the extent to which the Minister has identified issues likely to impact or impede the rapid development of the various aspects of the national development plan.

FG Paschal Donohoe

I thank the Deputy for his question. We have identified a number of constraints in delivery of the national development plan. To facilitate an exchange with the Deputy, I will pick two. First is the availability of the workers we need to translate spending plans into delivery of homes and projects and the labour and skills shortages in our economy. We are looking to address that through progress being made in the Department of further and higher education in relation to apprenticeship plans. While progress there will always take time, it is the best chance we have to ensure we have the workers we need to deliver the projects we need. The second issue, with which the Deputy will be familiar and which has been a real challenge, is the impact of inflation on the delivery of important projects. We made a number of changes to the level of capital we are making available to Departments in the coming years and to our public sector frameworks for contractors and professionals to deal with the risks created by inflation. With a little bit of good luck, I hope in the time ahead to begin to see those inflationary pressures decrease to a lower level than they have been at in recent years. Those two are important challenges in the delivery of the national development plan.

FG Bernard Durkan

I thank the Minister for that reply. Are they the most important challenges or are there others in the wings that might have a similar impact? Is the Minister certain adequate progress has been made in dealing with the issues to which he referred?

FG Paschal Donohoe

I would have to identity inflation as the biggest challenge we have faced, given the cost of raw materials we need to deliver homes has increased in the way it has, with a knock-on effect on many buildings our country expects us to deliver. That, by some way, has been the biggest challenge we will have had in recent years. While I am hopeful it will improve, we should not be naive in assuming improvement will happen quickly. It will take time to begin to see the cost of building projects stabilise. That is why we have made additional capital funding available across this year and the next two years. It is also why we have made changes, as I mentioned to the Deputy earlier, in how we agree the delivery of important projects with developers and service professionals like architects.

FG Bernard Durkan

I ask the degree to which the Minister's Department, or any other Department, is in a position to drill down into the causes of inflation and where it most seriously impacts negatively on the work the Minister is trying to do? Are there positive signs it is being controlled? In line with the progress in other jurisdictions, will the Government do something similar?

FG Paschal Donohoe

We are in a position to drill down into it. Unfortunately, the answer has been both simple and very difficult. The cost of inputs has gone up so much, including wood, steel and other things we needed in recent years to turn our money into projects the country wants. It has got far more expensive to build. In terms of indications that it is beginning to improve, at this point any evidence I have is anecdotal from talking to officials about delivery of projects. I have received anecdotal feedback that tendering processes are having more companies coming to participate in them. That is a good sign. How do we compare with what is happening in other jurisdictions? In truth, we compare favourably. The reason we do so is that we are in a position to invest more to offset the impact of some of these issues. The best example of this is where we are in housing, a big feature in the questions and answers we have had this evening. We are one of the few countries in Europe building more home this year than last.