The EU’s ‘Made in Europe’ proposal has the potential to prolong the housing crisis, the ESB has warned.
Amid rising global protectionism and concern about the vulnerability of global supply chains, the European Union is designing a policy to incentivise EU businesses to buy within the bloc.
However, ESB Networks has written to the Government, warning that the legislation would “represent a risk to our ability to build at the pace required to support housing, the economy and climate action”.
The energy company is responsible for connecting new homes to the grid and procures much of its cables and electrical transformers from outside the bloc.
On The Claire Byrne Show, UCD Professor Tom Phillips said the policy puts the cart before the horse.
“In terms of manufacturing, there has to be a supply and they have to ensure that the supply can also be generated in Europe,” he explained.
“Steel and other forms of large transmitters will often rely on the supply of actual ingredients or elements they need to build that are not manufactured in Europe.
“That's the dilemma they're facing.”
New homes under construction in Dublin. Picture by: Alamy.com. Professor Phillips continued that the idea behind the policy is “very good” amid so much uncertainty. However, he warned that European manufacturing would simply not be able to cope with the surge in demand.
“I think steel is a particular one,” he said.
“Analysis throughout Europe has shown that it's not really that available in Europe.
“The EU and with Ireland, in its presidency role, probably has to look at a facts based system and to look and to actually follow the chain and look at what is required by the ESB and actually work out what they have at the moment.
“You can't do it overnight; it has to be phased in to make sure that the European ability to supply the goods that are required to make those pieces can be scaled up.
“You can't just do that, you can't just switch to the point.”
In the Programme for Government, Fianna Fáil and Fine Gael vowed to build “more than” 300,000 new homes by the end of 2030.
Main image: House building in Kildare. Picture by: Eamonn Farrell/RollingNews.ie
