Fuel prices could cause building progess to 'stutter and stagnate' - Construction Industry Federation
Vivienne Clarke
The chief executive of the Construction Industry Federation has expressed concern that the increase in fuel prices as a result of the conflict in the Middle East will have a major impact on the cost of doing business for the sector and, as a result, will cause developments to “stutter and stagnate.”
Action was needed urgently to address the issue and mitigate the situation, Andrew Brownlee told RTÉ radio’s Morning Ireland.
“The construction industry welcomes the pause on the carbon tax and the excise reductions, we certainly called for them.
"But look, when those changes are implemented this evening, we estimate that the price of petrol has increased by about five per cent since February, but if you look at that MGO green diesel which fuels the construction industry, that's gone up by 83 per cent.
“Now the fuel support subsidy scheme is partly designed to offset the costs incurred through use of MGO green diesel, but that seems to be specifically targeted at the agriculture sector, so it's not clear to us how it's going to support the construction industry.
The initial indications the Construction Industry Federation have got is that the subsidy scheme will probably apply to large trucks, "but when you think about the excavators, the dumpers, the mobile cranes that we use to build homes and develop infrastructure, the signs are that that is not currently part of the package.
"I know government is still working on the detail, but we do really need clarity and we do need to see that included and specific acknowledgement of the fact that the construction industry is in the eye of the storm right now.”
The construction sector needed the government to recognise it was facing severe pressures because of what had happened in recent months, he said.
“I think in the construction industry we need to work collaboratively with government if we're going to tackle our massive housing and infrastructure challenges. That's the way we've worked in the past, that's the way we intend to continue to work in the future.”
