Construction industry ready to deliver, but is the Irish government lagging behind?

By April Lara

September 16, 2024

Irish Construction industry

The Irish construction industry is poised to drive the country’s infrastructure development. However, persistent government delays in planning and project pipelines threaten progress.

According to the recently published Competitive Challenge 2024 report, while the economy operates at full capacity, the planning system remains a significant bottleneck in delivering critical infrastructure.

The Construction Industry Federation (CIF) has expressed confidence in tackling the demands of the National Development Plan (NDP). Still, it warns that without clear action from the government, Ireland could miss out on opportunities for economic growth, job creation, and long-term sustainability.

Irish construction companies have consistently demonstrated their ability to ramp up resources and deliver large-scale projects when a clear pipeline is available, according to Hubert Fitzpatrick, Director General of the CIF.

The CIF report identified ongoing issues with Ireland’s planning process, which slows down infrastructure development. Delays in securing approvals and permissions for critical projects have left many plans stuck in the pipeline, preventing timely execution.

For one, the roll-out of the National Broadband Plan, delivered by the National Broadband Ireland (NBI), has faced years of delays. The full deployment of the contract signed in November 2019 is expected to be finished by 2027. The government released a review of the programme, revealing that it ran 12 months behind schedule due to the COVID-19 pandemic and other delays.

There have also been long delays in the construction of the New Children’s Hospital (NCH), billed as the world's best children’s hospital. Structural faults are one of the causes of the project's delays, and controversies the construction firm BAM is in have also caused delays.

These delays have created uncertainty around projects necessary for the country’s economic growth and its ability to meet the demands of a growing population. Whilst the construction sector is prepared to meet these needs, the CIF insists that the government must act to clear the logjams in the planning system.

Delayed infrastructure could cause significant challenges for Ireland in terms of maintaining jobs and attracting foreign direct investments. A lack of critical infrastructure could deter multinational companies from investing in the country, particularly in industries that rely heavily on reliable energy supplies, efficient transport networks, and modern facilities. With Ireland’s economy increasingly reliant on foreign direct investment, planning delays threaten the country’s competitiveness on the global stage.

Whilst the Irish construction industry stands ready to deliver on the promises of the National Development Plan, government inaction on planning deals threatens to undermine these efforts. Addressing these bottlenecks is vital for the future of the economy, along with its sustainability goals and global competitiveness.

Suppose the government steps up and reforms the planning system. In that case, Ireland has the potential to build a future-ready infrastructure that can support its people, attract global businesses, and drive long-term economic growth.