The Local Planet - The Lion is Hurt

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The Lion is Hurt

Tuesday, 30 November 2004

In this email interview, Catherine Rountree puts a variety of questions to Century Homes boss, Gerry McCaughey.

1. Tell us how you came to be involved in the timber frame business?
After finishing a B Comm. in UCD I emigrated to California in 1985. I had a conversation with my dad on a short trip home in 1988. I was convinced that the problem with the timber frame housing business was primarily lack of marketing, particularly the fact that misconceptions about the business were not being addressed. My dad told me to put up or shut up. I arrived home on December 3rd 1989 and on January 1st 1990 Century Homes came into being, run by myself, my brother Gary, my dad Brian and Jim McBride, a family friend. We had £150,000 to rent a 5,000 square foot building, buy equipment and materials and pay our way.

2. Do you use Irish raw material or products in your manufacturing process?
We use Irish products where ever possible. All our plaster board is made by Gypsum Industries in Kingscourt in Cavan. All our insulation is made by Irish company Moyisover and all our stairs and steel engineering is also Irish.

3. Why do you think we are so far behind other countries in Europe in the percentage of timber frame houses as compared to block / masonry houses?
When the British were here they fuelled the industrial revolution by the cutting down of our forests, which meant that we did not have timber as a readily available raw material. As a result the only raw material we had came out of the ground. That has gradually changed as people have realised the value of timber as a sustainable material in the construction industry.

Because there wasn’t a timber culture in Ireland many large vested interests grew up in industries that were diametrically opposed to anything that was timber based. The building control regulations were all skewed to make it more difficult for timber frame, and, in many cases, it was very difficult to find an architect or an engineer who understood timber frame.

4. I understand you have an 'Eco House'. What are its environmental advantages over other house designs?
It is a future proofed house, because you can buy the house at the size that suits your life stage. It is pre-designed to expand with you, which means that you don’t have to move house when you wish to expand.

The other major advantage is the house is so energy efficient that it only costs between ?100 - ?150 a year to heat, which is a significant annual saving.

It is also friendly in terms of the construction process and the running costs of the house. To make a comparison, a 1200 ft concrete house would produce 6 tonnes of C02 per year; this house produces only between one and two tonnes.

We donated the first ever Eco House to the Christina Noble Foundation as a home for disadvantaged children. A site was donated by South Dublin County Council and construction should be complete early in the New Year.

5. Your houses are built in the factory in kit form so minimising material wastage, lost work days, and building stress. What are your thoughts on using other renewable materials for internal walls, etc? Hemp is undergoing a lot of interest in Italy as a building material as indeed it is here with a few innovative self builders.
We are a timber frame company. Timber is the product we use but we have used hemp as an insulation material. There are a lot of very environmentally friendly insulation materials in the market such as hemp and wood fibre. The problem we have with using some of those products is that they are expensive because they are not made here and have to be imported.

6. Referring to those concrete federation commercials that were brought to an end by the Advertising Standards Authority: was the timber housing sector damaged as a result, or are there any comments you would like to make about the issue at this stage?
You know the lion’s hurt when he roars. For the last 100 years the concrete sector has never had to advertise. They are now required to go on most forms of media to promote their product, but the tactics they adopted fell foul of the Advertising Standards Authority. It shows the effect that the timber frame is having. The only effect it had on Century Homes was people recognising the impact we are having in the market. All it did was give us more creditability.

7. Do you think that the Government could do more to encourage sustainable and affordable housing in Ireland? If so, could you specify what areas you feel require attention?
I think our government has been extremely slow and reticent in advancing the benefits of modern methods of construction, not that timber is a modern method of construction it has been around long before the concrete block!

Everything that has happened in Ireland in relation to sustainability has been dragged out of the Government. Despite the fact that we are operating way above our permitted levels of C02 emissions, we are still lagging behind other countries in terms of the energy efficiency of our buildings.

The U Values set for new Irish houses at the moment are still not best practice in Europe. Irish building regulations could still be improved dramatically to improve the energy efficiency of buildings.

The biggest scandal we have at the moment is that there are houses being built in 2004 to the 1997 regulations. This is because when the Government brought in new regulations in 2002, they left a loop hole that allowed builders to continue building to the old standards if they had applied for planning permission. That should be ended immediately and all houses being built today should be to the new regulations.

8. What are your thoughts on the new emissions trading scheme and will it be advantageous to the 'renewable resource' sector?
The emission trading scheme allows our 100 largest users to continue to grow their C02 output, instead of encouraging better behavior. In effect if these companies can take 10 years to get up to these limits, and in the meantime, they are permitted to sell off the quantity of C02 they don’t produce for a fee to other countries. The companies will be paid for trading, but it will not encourage better environmental behavior.

9. Do you have any suggestions or advice for the new minister for the environment?
Firstly, I think he needs to go into his new portfolio with an open-mind. We have had too many ministers who have come into the job and been immediately indoctrinated by the concrete lobby. The minister needs to have a long hard look at the impact housing is having on our commitment to Kyoto, on fuel, poverty for the less well off, and in developing a long-term sustainable system of housing in Ireland.

He needs to come up with initiatives that will help the green technology companies in the construction industry. The new dot com in the next ten years is going to be in the area of sustainability and in environmentally friendly products. Ireland is doing itself no favours at all in terms of our approach. We are being criticized by the EU on an ongoing basis. We are not developing an environmentally friendly culture, one where we can develop companies that would export these products

10. What are your impressions of the soon to be implemented 'Energy in Buildings Directive'?
I think it is a very good idea. We have had certificates specifying the energy efficiency from light bulbs to fridges, and in motor vehicles. But the single biggest producer of C02 in the country: ie housing, had nothing to measure it. The idea has great merit and should be introduced as soon as possible. I am extremely disappointed that the government is already indicating that it will seek a derogation to introduce the directive from 2006 to 2009.

11. What are your thoughts on the Government's scrapping of the carbon tax?
I think it is diabolical and an absolute disgrace. It again shows the lack of environmental credentials that the government has, and in particular the Department of the Environment has. Quite clearly the logic given for the scrapping of the carbon tax was ridiculous. The argument that it would increase costs and hit the less well off is rubbish. The proceeds of the tax would have been redistributed to the people who need it most and need it to buy fuel for their homes. It was not brought in for one reason, to protect big business. It wasn’t done to protect the consumer or the less well off on society.

12. Is there an opportunity to replace the First Time Buyers Grant by offering financial incentives to people who build using renewable materials?
I have been lobbying for this for a long number of years. This is what should happen. If people build houses to a certain energy standard then they should be eligible for a grant. It would be of enormous benefit to the economy and to the environment.

13. You stood for the PDs in the last general election. That's a huge commitment. What motivated you and what would you have done if you had won a place? Will you be putting your name forward in two years time?
I stood because I wanted to deliver for my home county of Monaghan which has suffered from complete political inertia for decades. I want to deliver for people and improve the life in communities in Monaghan. I chose to run for the Progressive Democrats because I believe that they are the most effective political fore in Ireland to deliver results for the electorate. I am motivated by the ability to get things done. I am still very interested in politics and I haven’t decided yet if I will run again.

14. Tell us about your motivation in sponsoring Century Homes Park?
We believe that corporate social responsibility is very important. You can’t become a successful business if you do not put something back into your local community. In that sense we have been very involved in all aspects of sport. We are secondary sponsors of Monaghan Rugby Club. We are primary sponsors of Monaghan GAA supporters club. It is something that benefits all sectors of the communities from the very young kids and the players to the people who go to watch the games.

15. How do you see the future for Century Homes?
It will be upwards and onwards. We have now made our second acquisition in the UK and we still have to complete our fourth factory in Ireland. We will also develop our product in Ireland from its current open panel to closed panel, which will be a major development in the housing industry. This will mean sending the wall to the site with the insulation, the plumbing and the wiring and the plaster board fitted in the wall. The company is also at the stage of looking at making our first US acquisition in North America.

16. What are your thoughts on the development of the timber / timber - frame sector over the coming years?
Timber frame has reached a critical mass in Ireland and I believe it will take 50 % of the new Irish housing market in the next 10 years. Even if the number of new house built declines timber frame will continue to eat into the overall market share. If you look at our nearest neighbours Scotland, timber frame accounted for 63% of the housing starts last quarter. So 50% of the market is a very reasonable and achievable target, considering Scotland is so close to us geographically, climatically and culturally.

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