Dara Calleary (Mayo, Fianna Fail)
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4. To ask the Minister for Jobs, Enterprise and Innovation the progress that has been made in implementing the recommendations of the Forfás strategy for the construction sector; and if he will make a statement on the matter. [12293/14]

Dara Calleary (Mayo, Fianna Fail)
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This year's version of the jobs action plan acknowledges that the construction sector has, by international comparison, overcorrected and is now operating below its long-term sustainable level. What is the Minister's plans for employment creation in this area?

Richard Bruton (Dublin North Central, Fine Gael)
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The Forfás report on Ireland’s construction sector was published last July and presents an outlook for the sector to 2015, based on known and anticipated demands. The report includes a number of proposed actions aimed at generating more certainty in the domestic market, removing constraints and obstacles, and ensuring that the sector is equipped and capable of delivering innovative solutions in both domestic and overseas markets. Based on European comparisons and long-term trends for Ireland over the past 30 years, the Forfás report considers that it is plausible that Ireland could sustain a construction sector equivalent to approximately 12% of GNP, compared to 6.4% of GNP in 2013.

The Action Plan for Jobs also includes a suite of measures aimed at ensuring proper planning and sustainable development, supporting the expansion of construction firms into international markets, and strengthening public confidence in the sector. Among the measures that have been implemented are measures in the 2014 budget for home renovations and living cities; implementation of public private partnerships; the roll-out of the stimulus package, for example, the funding of the new children’s hospital; the decision of the IDA to construct buildings in 2014 in Waterford, Athlone and Letterkenny; the continuing work of NAMA to support recovery in the sector; and the active support of Enterprise Ireland for construction sector firms to improve technology and export capability. The Government is also making progress with 70 major school projects in 2014 and expanding the energy efficiency retrofit programme.

The Action Plan for Jobs outlines additional actions for the construction and property sector. In addition, the Government has committed to a new strategy for the construction sector, which will be published shortly.

A more detailed set of proposals will be available to the Deputy shortly.

Dara Calleary (Mayo, Fianna Fail)
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The Action Plan for Jobs 2013 referred a great deal to the construction sector but when we put a question to the Minister at the end of January to ascertain employment creation in that sector in 2013, he was unable to provide a figure because it was not being monitored. Last July the Forfás strategy stated that a consultation and co-ordination group should be established under the auspices of the Department of the Taoiseach but that has yet to be established.

The Minister mentioned the State building programme but the procurement rules which apply to that building programme are putting construction firms out of business. I know it is not the Minister's area but the procurement rules are a serious impediment to job creation and are costing jobs. Yesterday we had the statements on the local authority housing sector on which there has been no progress, even though there is huge opportunity and huge need. There is much rhetoric and spin but a lot of things are happening in spite of the Government's strategy. When will we see focused job creation ensuring that the capital programme of every Department is fully spent and not underspent as was the case last year?

Richard Bruton (Dublin North Central, Fine Gael)
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On the employment front, construction during 2013 increased for the first time in six years, although it was a small increase. The last quarter was weak, with the previous one being stronger. Part of that may be attributable to poor weather during that quarter. There seems to be opportunity emerging. The Taoiseach has been central to co-ordinating the new strategy, which will be published. That strategy has been co-ordinated in the Taoiseach's office and will be published within weeks. The Taoiseach has sought a response from all Departments to support opportunities in this sector.

I agree with the Deputy that procurement is an important area but public procurement has been constrained by the financial difficulties the country has faced. Some of the innovative approach has been to try to fund procurement, partly off balance sheet, through the likes of the sale of the lottery franchise to fund the national children's hospital and the use of public private partnerships. Innovative approaches are being developed to fund public projects and we will see more of that in the construction plan.

Dara Calleary (Mayo, Fianna Fail)
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To pick up on the last point, the procurement difficulties have nothing to do with the financial problems we have. They relate to contracts being awarded. The procurement laws and rules are driving a lot of companies out of business. Many companies, in particular regionally-based companies which have employment potential, are not in a position to bid. I do not know if the Minister has advanced knowledge of the strategy but is there an area about opening up procurement rules to allow smaller companies, which have job creation potential and which employ people in the same way as other companies, to get a share of those contracts? Unless the procurement rules are changed there will be very little employment value in the new contracts coming down the line.

Richard Bruton (Dublin North Central, Fine Gael)
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There are a number of things which are already in the Action Plan for Jobs, such as the new director of public procurement reviewing the contract letters issued in terms of public procurement. A fresh look is being taken at whether smaller businesses, SMEs, are getting a fair crack. Equally, the Deputy will see that in the water contract, there was an unbundling of the contract to try to give more contractors an opportunity. Social clauses are being examined to see if there is the possibility to include requirements in respect of recruitment off the live register. A number of areas are trying to open up public procurement to give more opportunities to individuals and to SMEs.