Twin challenges posed by a serious manpower shortage and the threat of unofficial industrial action could upset the construction industry's ability to deliver the National Development Plan, the Construction Industry Federation (CIF) has warned.

Speaking at a press briefing in Dublin, Mr Liam Kelleher, the CIF director general, said the labour shortage was "posing a significant problem for the construction industry", which could jeopardise the current buoyant phase of construction activity.

Mr Kelleher said a skills shortage existed in all the main craft sectors of the industry and within the areas of site and project management. With employment within the industry predicted to jump by over 30,000 by April 2003, significant action by Government departments, State agencies, social partners, the CIF and contractors would be required, he said.

He questioned the ability of existing training structures to provide the necessary number of new apprentices over the next few years. Although 6,000 new apprentices are due to take up places this year, there remains a backlog of over 2,000 apprentices who remain unable to complete "off the job" training because of a lack of spaces.

Last night, the Fine Gael spokeswoman on Enterprise, Trade and Employment, Ms Nora Owen, condemned the Government for failing to enable the apprentices to complete their training. She said: "Resources are required by the colleges and the FAS training centres to ensure that apprentices can fulfil their education phases as well as the practical phases of their apprenticeship training."

The CIF called on the Government to create a high-level task force on construction manpower and education and training to address the problem.

Other proposals which the CIF recommended include: a promotional campaign to attract foreign workers; an increase of apprenticeship places in the training centres; a redefinition of craft skills in agreement with the social partners; the introduction of adult construction apprenticeship schemes and accelerated apprenticeships; urgent development, promotion and expansion of the the construction skills certification scheme; and a programme to increase the number of construction management courses.

Mr Kelleher said Government should give the same priority to training within the construction industry as it had to the information technology sector a few years ago.

Mr Kelleher said there was concern among employers in the construction industry about the rising levels of unofficial industrial unrest last year. He said a whole range of groups who were not members of the official trade union movement had disrupted the industry's ability to deliver deadlines in 1999. This matter needed to be addressed and the CIF was urging legislative measures to help prevent illegal picketing activity.

Figures released by the CIF show the construction industry expanded 13 per cent last year. The total value of construction activity in 1999 was approximately £11.5 billion.

The general contracting sector doubled its output in 1999 from the 1995 figure. There was 20 per cent growth in the commercial/ retail area, while the rate of growth in tourism has fallen to 4 per cent. The civil engineering sector grew 20 per cent in 1999. It is estimated that there will be an 18 per cent increase in volume in 2000, mainly due to the public capital programme in roads, sanitary services and the telecom/energy sectors.

The housing sector is estimated to have reached 46,500-47,000 units in 1999, an increase of nearly 5,000 on the 1998 figure.