Public Expenditure and Reform | Are delays incurred in the delivery of housing projects responsible for inflationary costs

To ask the Minister for Public Expenditure and Reform if delays incurred in the delivery of housing projects are responsible for inflationary costs; if he foresees opportunities for intervention in this regard; and if he will make a statement on the matter.

REPLY

As the Deputy is aware, my Department is responsible for policy on allocating public funds across each area of Government spending and ensuring that expenditure is managed in line with these allocations by Departments.  In this way, officials from my Department engage with their counterparts on proposals in relation to a variety of expenditure measures including in relation to housing, however, queries in relation to housing policy are in the first instance for the Minister for Housing, Local Government, and Heritage who has policy responsibility in this area.

Whilst I do not have the information necessary to be able to comment on whether delays incurred in the delivery of housing projects are causing an inflationary effect, as this would be more appropriate to the Department of Housing, I am confident that work underway in my Department progressing Modern Methods of Construction and improving levels of productivity and innovation in residential construction should help to alleviate some of the pressures that are unfolding in today’s construction industry.

The Construction Sector Group within my Department is working with the industry to strengthen the residential construction supply chain, to introduce modern methods of construction and promote innovation using digital and manufacturing technologies. The progress of these initiatives are monitored monthly and detailed progress reports submitted to the Government periodically.