Construction Industry Federation Releases

BANKS MUST PROVIDE LOANS FOR MAJOR OFFICE PROJECTS IN DUBLIN - CIF

Banks must start providing loans for major commercial office space in Dublin City Centre before foreign direct investment runs out of options, according to the Construction Industry Federation (CIF).  The CIF were speaking after Barry O’Leary, the chief executive of IDA Ireland warned of a shortage of office accommodation for multinational companies looking to set up here. 

“There clearly is a shortage of modern office buildings in Dublin City Centre,” said CIF Director General Tom Parlon.  “As Barry O’Leary said there are currently only about four of five modern office buildings available in Dublin City Centre.  While there is still a lot of vacant office space around Dublin, this space is spread out.  Foreign companies who are looking to set up an operation in Ireland generally want to have their operations located on the one site. 

“Dublin is the prime location for investment and if the IDA continues on their recent successes it is likely that we will soon run out of this type of accommodation very soon. Buildings of this type take at least 18 months to be constructed, probably longer for major projects.  So if we don’t address this issue soon then it could be too late to meet the needs of other multinational companies looking to locate in Dublin.

“We have many different civil construction members who would love to build developments of this nature in Dublin.  The problem is they can’t get loans from the banks.  There is just no money being made available for projects of this nature. 

“Obviously a large office project would create hundreds if not thousands of jobs as well, taking many construction workers off the dole and allowing them to earn wages that will contribute salaries to the Exchequer.  So investment of this kind would not only help attract more multinationals to the country, but it would also provide a boost to the State coffers during the construction period. 

“We have been repeatedly asking the banks to make finance available for these type of projects.  So far we have not seen any movement on their part.  Hopefully as important agencies like the IDA join us in making points about the shortage of office space in Dublin, we might see some credit becoming available for office construction again,” Mr. Parlon concluded.