The construction industry must seriously consider employing foreign labour to sustain growth rates, according to the annual review from construction consultants PKS.

"The resource constraints currently suffered by the industry must be overcome as soon as possible if we are to be able to deliver the ambitious targets within the National Development Plan," it said.

"There is a grave danger that without radical and sustained focus on the problem of skill shortages and other blockages, that the National Development Plan will not be delivered within the time scale laid down."

PKS has forecast the volume of new construction will rise by 10 per cent in 2000, with a 5 per cent growth in housing, 18 per cent in civil engineering and 14 per cent in general construction.

There will also be increases in public sector construction with educational building up 64 per cent in volume and health building up 72 per cent.