World Bank Report 2015 | Ireland’s poor construction regulations are the biggest drag on our ranking

by Bregs Blog admin team

WB

By BRegs Blog Admin. Team on 29th October 2014

The World Bank ‘Doing Business’ Report 2015 was published earlier today. The good news is that Ireland’s overall ranking has improved- we have moved up 4 places to 13th out of 189 countries*. See Ireland’s overall ranking here.

However Ireland’s ranking for “Dealing with construction permits” in the  report goes down from 117th to 128th – a drop of  11 places in one year.

Could BC(A)R S.I. 9 be to blame?  

Doing Business 2015′  is the 12th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it across 189 economies—from Afghanistan to Zimbabwe.

PAGE 9.pdf [Converted]

Fig1.4. page 9 WB report “Ireland Economy profile 2015”

When compared to other mid-population countries Ireland is 40th (between Jordan and Bolivia) on a table of 63 which has Libya and Eritrea at the bottom and Hong Kong and Singapore at the top.

Among OECD High Income Countries the comparison is even more stark. Ireland is down at 29th of the 31 countries listed for ‘Construction Permits’, worse than every country except Poland and the Czech Republic. On this comparison the UK is ranked up at 5th place with Denmark at 1st. (Link to OECD High Income data)

In this sector the UK is placed 17th this year, well over 100 places ahead of Ireland on these construction indicators.

These latest statistics will be of concern to the Government particularly for their impact on stimulating the construction sector. Ireland’s  ranking in last year’s World Bank ‘Doing Business’ report  “Dealing with construction permits” was specifically mentioned as one key area for improvement by Minister Richard Bruton in January of 2014.

It should be noted that these figures only take partial account of the additional costs associated with the Building Control (Amendment) Regulations introduced earlier this year and they do not take account of new water connection costs. As Building Control is now privatised in Ireland the associated impacts on costs and delay incurred have not yet been fully captured in this survey.

The report gives guidance on how reforms may stimulate performance (see link below) and this must be something the Government needs to address as a matter of urgency if we are to improve on our performance in 2016.

For the full report on Ireland download the PDF here: IRL World Bank Economy Profile 2015: Ireland

*World Bank Rankings for 2014 have been adjusted for change in methodology.

Useful Links:

World Bank  rankings:

World Bank ‘Doing Business’ Report 2015

‘Ease of Doing Business’ Data on Ireland

‘Ease of Doing Business’ Data on UK

Link to Reform Simulator:

Other posts of interest:

Collins & O’Cofaigh | “the 38 steps” and the complexity of our regulations

World Bank Rankings [2014], Ireland & SI.9 – Look Back 1

S.I.9 – Where are we now? 27 October 2014

Commencement Notices – Update | 22 October 2014

€ 5 billion | The extraordinary cost of S.I.9 self-certification by 2020

A ‘perfect storm’ for housing? 

Residential construction down in 2014 Q1+ Q2: (CSO statistics)

How much would 100% independent inspections by Local Authorities cost?

The cost of a Solution to BC(A)R SI.9?

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