Housing crisis and high tax deter builders from returning

High income tax rates and the housing crisis are deterring skilled construction workers from returning to Ireland, the boss of one of Ireland's biggest construction firms, John Sisk & Son, has warned.

Stephen Bowcott said that while Sisk doesn't have any problem encouraging white-collar professionals to return from Australia, Canada or the UK, on-site workers such as bricklayers or plumbers are less likely to make the move home.

"For white-collar workers, we've very little difficulty," the managing director said, "but for blue-collar staff taxation has made it difficult."

He said the housing crisis makes returning home an even more daunting prospect for blue-collar emigrants, and that they typically won't be in a position to secure a mortgage large enough to buy a house around the main cities. Sisk itself employs more than 700 people.

Lobby group Property Industry Ireland and Ibec have recently estimated that an additional 80,000 workers are needed in the sector just to meet current housing demand.

There are currently about 138,000 people employed in the construction sector, according to the Central Statistics Office. Mr Bowcott said that while there is a skills shortage in Ireland, boosting productivity is a key challenge and ambition, and would go some way towards addressing the staff deficit.

He also said it was essential that more apprentices start working in construction.

"The industry needs to train them, not just for next year or for two years' time, but for 10 years from now," said Mr Bowcott.

He was speaking as family-owned John Sisk & Son said its profits soared 73pc to €24.7m last year as it continued to be a profit-led, rather than a turnover-led, business. Its revenue declined 5pc to €792.2m.

The company worked, and is working on, major projects in Ireland such as the €70m refurbishment of Pairc Ui Chaoimh in Cork, the new DIT campus in Grangegorman, the Center Parcs resort in Co Longford, the redevelopment of the Curragh racecourse, the Luas extension and Capital Dock in Dublin.