Planning permission decline points to building slump

THE last quarter of 2010 saw planning permission being granted for just 63 dwellings in Clare, according to CSO figures.

In the final three months of 2005 permission was granted for 165 new dwellings and 60 other new buildings. In the last three months of last year, however, permission was given for just 63 dwellings and 31 other buildings.
The figures indicate the downturn in construction-related activity in the Mid-West and Conor O’Connell, secretary of the Mid-West branch of the Construction Industry Federation said it’s a very difficult time for the industry. “No matter how good an applicant is, they are getting turned down for mortgages. There’s also a slowdown in the roll-out of public projects even though we’d all know of a school that needs a new classroom or improvements.”
He said that the Ennis Wastewater Treatment plant is an example of the kind of public project that should be prioritised. As well as planning-permission figures, he said other indicators show the construction industry is in the doldrums.
“In the month of March, only one house in Clare registered with Homebond and the vast majority of people with new houses usually register. There were 26,000 people in the Mid-West working in construction but only about one in three of those is still working in the industry.”
Councillor Joe Cooney works in construction and feels there has been a further decline since the start of 2011.
“I doubt that one in three are still working, I’d say it’s less than that. Since the new year, things have got quieter and there has been less happening. I would say if you looked at those planning applications, some of them would have been looking for an extension of time.”
He said many young people who had worked in construction have emigrated and that many others are unemployed.
Across the country, planning permission was granted for 2,159 houses in the fourth quarter of last year, compared to 3,457 in the fourth quarter of 2009, representing a year-on-year decline of 37.5%.
On an annual basis, total permissions in 2010 fell by 27.6% compared to 2009. One-off houses accounted for 48.1% of houses granted permission in 2010 in comparison with 32.5% the previous year.
Other parts of the Mid-West also suffered in the last three months of 2010, with not one dwelling given permission in Limerick City and permission granted for 16 other developments.