Northern Ireland Programme for Government signals growth opportunity for construction

Ciaran McNamara, an infrastructure expert, and Catherine Burns, a construction specialist, at Pinsent Masons were commenting following the publication of the programme on 3 March.

The programme sets out immediate priorities in nine focus areas. This is the first Programme for Government from the restored Northern Ireland Executive so “will be welcome clarification on the political, social and economic areas of focus for the Northern Ireland Government”, the experts said. For the construction sector, significant themes include “growing a globally competitive and sustainable economy”, “providing more social, affordable and sustainable housing”, and “reforming and transforming public services”.

McNamara said: “The document provides a high-level overview of the government’s intentions but is light in detail and will need to be followed by significant policy and legislative commitments to deliver for businesses and investors in Northern Ireland.”

As well as recommitting to public sector infrastructure projects – including the expansion of Ulster University’s Magee Campus, the redevelopment of Casement Park, the Western Transport Corridor A5 road project and the All-Island Rail Review – the industry will also welcome plans to build 5,850 new build social homes and the proposal for a new £235 million Transformation Fund, managed by a new Public Sector Transformation Board tasked with transforming the model of delivery of public services.

“There remains however, a lack of clarity and a clear pipeline of work upon which the construction sector in Northern Ireland and those investing into the country will be able make investment decisions against,” Burns said. “Whilst the programme notes a commitment to investing £26 billion of public funding in the next decade, industry will want to see what priority investment decisions are going to be taken over the next one to three years.”

The industry awaits further details from respective government departments, including the department of infrastructure, about the main priorities for government spending over the next three years. The reality is, however, that many of the proposed projects will not have reached final investment decision by the next election in 2027, and there remains the risk that projects will remain undeveloped, McNamara said.

However, “there is plenty of room for optimism”, he said. “Northern Ireland holds a unique place post-Brexit, and we are starting to see increased foreign investment into the region. With increased economic activity will come the need to address long term infrastructure needs. Thankfully we have a productive construction sector who, in quiet times in Northern Ireland have established themselves in the UK, Ireland and internationally. With the right government commitments, we could see a return to more vibrant construction sector, which will have wider benefits to the Northern Ireland economy.”