asked the Minister for the Environment the increase in employment, if any, in the building and construction industry since mid-June 1977; and, in the event of there having been an increase, how much of that increase is accounted for by (a) the general up-turn in economic activity during 1977 as a whole; and (b) by the special measures outlined by the Government.
Ceisteanna—Questions . Oral Answers . - Building and Construction Industry Employment .
26.
: Information in the form requested by the Deputy is not available. However, indicators of activity in building and construction point to a considerable improvement in the employment position in the industry over the past year. For instance, the index of employees in building and construction published by the Central Statistics Office, and based on returns from firms in the private sector of the industry employing five or more persons, shows an increase of 9 per cent for April 1978 over April 1977. Total employment on road works increased by 800 between June 1977 and April 1978. The latest unemployment figures show that there were 1,576 fewer building and construction workers on the live register in February 1978 than there were in February 1977. I am satisfied that, when more up-to-date figures are available, the employment position will have further improved, having regard to the seasonal nature of activity in the industry.
I have no doubt that the improvement in employment in the industry is due almost entirely to the measures taken by the Government since taking up office. The main aim of the extra public investment since July 1977 has been to create jobs and the specific measures taken saw the creation of an estimated 1,670 direct jobs up to the end of 1977 and the target for 1978 is a further 4,940 direct jobs. I would emphasise that these are direct on-site jobs and do not take into account off-site jobs estimated at about 2,000. As well as these specific job-creation measures, other measures taken by the Government, such as the introduction of the £1,000 grant for first-time owner occupiers of new houses and the increased maximum loan and income limits for SDA loans, are creating considerable extra employment in the private housing sector.
Home sales of cement, which give a reasonably good indication of the general state of the industry, were down 2.5 per cent in the first half of 1977 relative to the corresponding period in 1976. These sales have recovered significantly since mid-1977. Sales for the past 12 months show an increase of 10 per cent relative to the preceding 12 months.
Public capital and current expenditure affecting the industry, which in 1978 represents an increase of 23 per cent over 1977, is the main factor contributing to the improvement in the state of the industry. Overall output is expected to increase by about 7.6 per cent in 1978 relative to 1977. Taking productivity and job losses into account, total direct and indirect employment in the industry by the end of 1978 may be some 8,000 higher than in April 1977.
: How does the Minister explain the downturn in house building in the local authority sector in the first three months of this year in view of the facts and figures he has just given?
: As I stated, many local authorities are not keeping up to the stage they should in order to maintain their number of houses in relation to the amount of money being made available to them. That does not necessarily mean that they are not going to catch up with the number of houses equal to last year's figure or that of the previous year before the end of this year. There may be specific factors in their areas. It is disappointing but it is not because of lack of money made available to them.
(Cavan-Monaghan): Is there any significance between the market drop in the number of completions and the avowed policy of the Government, as expressed in their White Paper and enunciated by the Taoiseach, the Tánaiste and the Minister for Economic Planning and Development, that local authority houses will be cut? Is it not obvious that the number is being cut in pursuance of that policy and that it is working well?
: No Minister said the figure would be cut down. Ministers said it would be a matter for critical examination. They were referring to the manner in which the money would be spent because of the vast amounts involved. Nobody made a statement like that made by the Deputy.
: I should like to ask the Minister if he has received any representations or if it has come to his knowledge that in the local authority house building sector many contractors who were previously contractors building private houses have reverted back as private contractors? Is he aware that contractors with local authority contracts who are also house contractors and developers in their own right have fallen behind in their own timetables for local authority houses because, it could be reasonably inferred, they recently shifted some critical labour such as I referred to away from local authority houses to their own sites?
: I have no evidence of that.
: The Minister could profitably review that area as one of the reasonable and rational explanations as to why there has been such a downturn. He might find some very interesting answers from that area.
: I should like the permission of the House to deal with the remaining questions put down to me on the Order Paper.
: We give the Minister permission to finish.