SOME OF Ireland’s leading players in the property and construction sector yesterday formally launched a new umbrella body called Property Industry Ireland.
Led by chairman Kieran McGowan, a former head of the IDA, and chief executive Ronan King, a former partner with BDO, it hopes to play a role in getting the industry back on its feet and creating new jobs.
As a first step, the body launched a report on the sector from economist Jim Power.
It found that construction output in Ireland related to about 5.9 per cent of our GDP in the first quarter of 2011. The European average was 11.2 per cent.
At its peak in 2006, the construction sector comprised about 22 per cent of GDP.
Mr Power said that in a properly functioning market, the property sector in Ireland should account for 12 to 15 per cent of the economy.
If this were achieved, it would result in the creation of an additional 80,000 direct and indirect jobs and output of €20 billion, he added.
Mr McGowan, who is chairman of CRH, said he had met Nama chairman Frank Daly recently to discuss its objectives.
“He told me that he looked forward to a productive relationship with this organisation,” Mr McGowan said yesterday.
He said the various players had set aside their own narrow interests in a bid to aid a recovery in the property sector, which, in turn, would boost economic recovery.
The establishment of the new body was revealed by The Irish Timeslast week.
Its membership will include developers, architects, estate agents, financiers, contractors and engineers.
Its directors include Mark Fitz-Gerald of Sherry FitzGerald and Cork-based developer Michael O’Flynn.
Mr McGowan acknowledged that there might be scepticism among the public about members of the property industry advising government on the policy measures it should undertake to restore the sector to health.
“We’re not going to get anywhere by saying who is to blame. We want to help the economy come back by doing things. The prize is huge in terms of job creation.”
The body has about 40 members at present and hopes to grow this to 150. Membership costs up to €5,000.
