House building cost increases
Fitzpatrick and Quinn challenged the sharp rise in the house-building cost index, especially the 2.08 per cent increase, and asked what was driving it. Barrett said the index excludes many costs, acknowledged skilled-labour and blocklayer shortages linked to a lack of apprentices, and said an apprenticeship scheme was being arranged; he maintained that the trend should be judged over the full year.
(Cavan-Monaghan) asked the Minister for the Environment the percentage increase in the house building price cost index for the months of February, March and April, 1979.
Comment on this
The percentage increases in the house building cost index were as follows: 1 February 1979 to 1 March 1979, 0.29 per cent; 1 March 1979 to 1 April 1979, 2.08 per cent; 1 April 1979 to 1 May 1979, 0.17 per cent.
Comment on this
(Cavan-Monaghan): Would the Minister agree that that shows a dramatic increase in the cost of house building and that the trend seems to be now that the increase has taken off again; that those are substantial increases taken in conjunction with the increases for December and January?
Comment on this
Anyone would agree that the increases are alarming, depending upon the extent of the alarm one would want to express. Could the Minister give any explanation as to why the prices have increased by that amount?
Comment on this
The index is really ignoring the labour and material costs which would normally not exceed 65 per cent of the total price of a house. It does not include items such as overheads, profits, interest charges, land development and so on.
Comment on this
In relation to the labour content in the factories the Minister referred to, I should like to know if the Minister is aware of extreme skilled labour shortages in any of the sectors of the building industry which would contribute?
Comment on this
Throughout the building industry at present there is a shortage of skilled labour, particularly blocklayers.
Comment on this
In view of that would the Minister consider the position highly alarming as it undoubtedly will result in extreme increases in costs?
Comment on this
It is highly alarming but the main reason for the shortage of blocklayers is because no apprentices were taken on in the previous four years.
Comment on this
What I have stated is true. In conjunction with AnCO we are making provision for a proper apprenticeship scheme.
Comment on this
(Cavan-Monaghan): Does the Minister agree that the increases now disclosed show a reversal of the position about which he was boasting a few moments ago, that the price increases had slowed down towards the end of last year?
Comment on this
They did and I should like to confirm that they slowed down in the last two quarters of last year.
Comment on this
Ten or 15 minutes ago the Minister told the House that the reduction in the price index trend for the third and last quarter would be maintained but now he has told us the exact reverse.