Engineers call for construction funds

The Institution of Engineers of Ireland (IEI) has urged the Government to take advantage of the downturn in the construction industry to accelerate key elements of the National Development Plan (NDP), including the national roads programme.

Urging that the necessary funds be included in the forthcoming Budget, the IEI said the fall-off in construction industry inflation, along with the fact that construction firms now had capacity, meant the Government could press ahead with the development plan.

The IEI said this would "help to maintain economic growth and minimise unemployment".

In its pre-Budget submission to the Minister for Finance, Mr McCreevy, the institution said that, despite the short-term budgetary difficulties, "implementation of the NDP in full and on schedule is critical to Ireland's medium- and long-term competitive success".

The institution's director-general, Mr Paddy Purcell, said many engineering firms currently had "employees waiting idly for work to be released by the public sector" and he warned that, if engineering staff have to be made redundant, the potential to deliver the remainder of the NDP would be reduced.

This would ultimately result in increased costs to the Exchequer he argued.

In its submission, the IEI also cited recent warnings by Intel and Microsoft about the need for Ireland to produce more engineering graduates, and recommended that the Budget provide €300,000 Exchequer support for the joint Department of Education and Science/Industry programme to promote engineering as a career option in second-level schools.

"It will be pointless sinking hundreds of millions of euro into capital and other investment in second-level science facilities and third-level engineering and science facilities if students are not encouraged to take up engineering and science as a career," the institution warned.

The IEI also said the Budget should reduce the Withholding Tax to a lower rate and allow this tax as an offset against preliminary tax liabilities.