The Construction Industry Federation (CIF) has urged 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, on August 26, 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, timebound 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.
He added: “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 €2billion 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.
FOUR PRIORITY AREAS FOR BUDGET 2026:
Amid global economic uncertainty and domestic housing demand, a proactive government response is required. Ireland’s economic and social development depends on an enabled, innovative, and well resourced construction sector. CIF urges government to respond decisively in Budget 2026 by implementing the above measures, unlocking the sector’s full capacity to deliver housing, infrastructure, and climate resilience for the years ahead.
Infrastructure and Housing
STRATEGIC INFRASTRUCTURE DELIVERY
Ireland’s infrastructure performance remains a key national competitiveness challenge. The Programme for Government has recognised this, and Budget 2026 must:
• Accelerate and reform the National Development Plan (NDP) 2026 2035 to address delivery constraints and prioritise enabling infrastructure with multi-annual capital funding budgets.
• Establish a cabinet committee on infrastructure and a dedicated infrastructure division within the Department of Public Expenditure to drive delivery, reform capital project prioritisation, and embed value for money.
• Introduce separate budgets for road maintenance and new road construction to ensure long-term investment consistency.
• Significantly increase investment in energy infrastructure, especially to secure electricity supply for FDI-driven projects, and fast-track interconnector development.
UNLOCKING HOUSING SUPPLY
The construction industry must be enabled to deliver at least 60,000 homes annually to meet demand. Key measures include:
• Ring-fenced investment of €500 million per annum in water and wastewater infrastructure, specifically to advance critical projects such as the Greater Dublin Drainage (GDD) and Water Supply Project (WSP).
• Establish a national heatmap aligning zoned land with serviced sites to guide infrastructure investment.
• Introduce tax reforms to support apartment viability, repurposing of existing buildings, and brownfield site remediation – including VAT reductions, stamp duty incentives, and reform of the Residential Zoned Land Tax (RZLT).
• Extend and enhance schemes such as Croí Cónaithe, AHB Cost Rental Schemes, the First Home Scheme, and Help-to-Buy to maintain delivery momentum and buyer access.
Skills and Workforce
Development Meeting housing and infrastructure targets will require urgent investment in workforce planning. CIF recommends:
Reinstatement of the Apprenticeship Incentivisation Scheme and Redundancy Rebate Scheme to support employers. Full implementation and resourcing of the Single Integrated Apprenticeship System, including parity in funding between craft and consortium-led apprenticeships.
Ensure all schools can offer technical subjects and scale up public awareness campaigns such as the careers in construction initiative.
Enabling the Green and Digital Transition
The sector is committed to delivering sustainable infrastructure but requires targeted supports. Priorities include:
• Establishment of a national HVO (Hydrotreated Vegetable Oil) hierarchy and broader incentives for low-carbon construction machinery.
• Creation of soil hubs and funding for soil treatment technology to support circular economy principles.
• Greater investment in Construct Innovate Standardise project and the development of a national construction materials testing laboratory.
• Establish an MMC innovation fund to support modern methods of construction and regional manufacturing growth with continued investment for SMEs to move towards digital construction.
Competitiveness and Productivity
To retain firms and workers in the residential and infrastructure sectors, Budget 2026 must:
• Provide multi-annual budget certainty to stabilise public procurement cycles, particularly for MMC manufacturers.
• Address rising insurance costs and conduct a review of constructionspecific administrative and cost burdens, particularly for SMEs and family-run businesses.
• Accelerate delivery of a crossdepartmental action plan for competitiveness and productivity within 12 months.
Click here to read the Construction Industry Federation Budget 2026 Submission in full
