Yesterday's Budget has been broadly welcomed by the body representing Irish builders.

The Construction Industry Federation (CIF) lauded a number of key initiatives, announced by the state, to help tackle employment levels in the sector.

However, the CIF has warned new taxation measures will impact overall spending.

Federation Director General Tom Parlon (pictured) said: "This is a very tough budget and it includes a range of spending and taxation measures that will impact on consumption within the economy.

"There are a number of welcome measures in terms of the maintenance of employment within the construction industry although further clarification is needed on some of these measures."

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Capital expenditure in the order of 5% of GNP - that will see increased spending in schools, water and waste services infrastructure - has been welcomed by the CIF.

However, Mr Parlon said: "The total is €400m less than last year and we need to see where the cuts are."

A cut in stamp duty rates for commercial property will help attract investment into the current stock, according to Mr Parlon, who suggested the move would address the competitive disadvantage arising from the 9% rate.

"The CIF does welcome the Minister's initiative in launching a revised housing loans scheme to be administered by a small number of local authorities on a regional basis countrywide.

"The scheme will provide for a revised maximum loan for first time buyers subject to loan to value of 92%," he said.

The introduction of a proposed equity loans scheme has also been welcomed by the CIF.

"These measures should help address the lack of liquidity, whereby first time buyers could not access adequately finance to complete the purchase of their homes," he said.

"However, we must await the final details on these schemes before accurately accessing their impacts," suggested Mr Parlon.

"The increase in mortgage interest relief for first time buyers is welcome and will help further improve the affordability of housing for first time buyers," he added.

(PR/JM)