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25/09/2024

Government Commends NESC Report

The Government has praised the National Economic and Social Council (NESC) report titled 'Boosting Ireland's Housing Supply: Modern Methods of Construction' (MMC).

The report highlights Modern Methods of Construction (MMC), which involves the offsite manufacturing of buildings and their components, followed by transport, assembly, and fabrication on site. According to the findings, MMC has the potential to enhance Ireland's housing supply and assist in achieving climate goals by promoting more sustainable practices and the circular reuse of materials in construction.

The report finds that there is scope to use the Government’s Capital Works Management Framework and procurement process to drive greater housing market adoption of MMC. The report argues for an increase in the targets and funding for new public housing using MMC under an expanded Social Housing Accelerated Delivery Programme (ADP).

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The report also examines finance and recommends the creation of a dedicated forward-funding arrangement for MMC in housing that would lever increased investment in offsite manufacturing for MMC in housing. Tilting environmental, social and governance (ESG) investment towards MMC in housing is recommended alongside expanding the role of Ireland’s credit union sector to deliver a dedicated financial mechanism to pool financing from Approved Housing Bodies (AHBs) for new MMC housing developments. In addition, the report argues for more funding for dedicated apprenticeship and internship options for MMC to facilitate further upskilling for MMC roles.

Speaking on the report, Dr Dáithí Downey, Policy Analyst at NESC said: "Ireland can produce many new social and affordable homes using MMC that meet the diverse needs of all generations and create communities that are great places to live." He argued that "we must invest more to boost new public housing using MMC," and noted how "this investment will address the supply deficit and meet our housing needs, help grow our industrial and manufacturing sector in MMC for housing and underpin efforts to meet the goal of decarbonising our housing system."

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