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The Construction Industry Federation (CIF) has urged the Government to back promises with funding to deliver water and electricity infrastructure in Budget 2026.
A delegation from the CIF met with Minister for Finance, Paschal Donohue TD, and Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD, today (Tuesday, 26th August 2025), as part of the pre-budget process.
Hubert Fitzpatrick, Director General of the CIF, said: “The Revised National Planning Framework target of 50,000 new homes per year is welcome, but delivering on it requires more than words. To enable development at this scale, cities, towns, and regional communities urgently need billions of euros in balanced regional investment across critical infrastructure.
“Irish construction companies are ready to deliver, but they need a fixed, time-bound roadmap with a decisive funding commitment to ensure the timely rollout of essential infrastructure. We stress that in Budget 2026, multiannual investment in water and wastewater infrastructure, the electrical grid, and transportation must be prioritised. These utilities are the backbone of housing, economic growth, and job creation. Their delivery cannot be compromised, and further delays are not an option. Investing in infrastructure is an investment in our future prosperity and should not be viewed as simply a cost.
“We welcome the revised allocations in the National Development Plan, but delivery and implementation are now vital, and the Infrastructure Unit in the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation must actively monitor and ensure these allocations are spent in a timely manner. The increased funding allocations to Uisce Éireann, ESB, and Eirgrid are welcome. However, more detail is required on where the additional €2 billion funding allocated to Uisce Éireann to support housing delivery will be spent. It is critical that this additional funding is ringfenced and spent on new capital infrastructure projects only and not used for debt write-downs or operational purposes.”
‘Unlock delivery at scale’
In addition to infrastructure priorities, CIF’s Budget 2026 Submission also outlines targeted recommendations to address the housing crisis and unlock delivery at scale. The federation is proposing targeted tax incentives to address the market failure in apartment delivery.
Hubert Fitzpatrick said: “Meeting the Government’s revised housing target will require all housing types, with apartments playing a vital role. Recent measures, including the revision of the Rental Pressure Zones, changes to Apartment Design Standards, and various planning reforms, have given more confidence to international investors, but apartment projects are still struggling with high delivery costs, and therefore, some financial measures are required.
“To increase apartment completions to the required level, we need to attract both domestic and international investment. We therefore recommend targeted measures, including a reduction in VAT, capital allowances, and support for brownfield site development. In particular, reducing VAT on residential property will help lower costs for homebuyers and renters.
“We propose reducing the VAT rate on all new apartment schemes as a measure that would immediately reduce the cost of apartment delivery and increase housing supply. The Residential Zoned Land Tax should also be reassessed to ensure active builders are not penalised for delays beyond their control, such as planning or utility connection issues.
“We welcome the opportunity today to engage with Government on behalf of the construction industry, as we work to deliver the housing and infrastructure Ireland urgently needs to support sustainable growth into the future.”
The federation’s Budget 2026 submission makes recommendations across infrastructure and housing, skills and workforce development, enabling the green and digital transition, and competitiveness and productivity.
Read the Construction Industry Federation Budget 2026 Submission
Read the Construction Industry Federation Budget Submission (summary)