Prop-arazzi

NI CONSTRUCTION & PROPERTY JOBS PLUNGE

The number of workers employed within Northern Ireland’s residential construction industry plunged by around 70 per cent in the year to end-June, according to the results of an indicative survey carried out by the Construction & Property Group.

The powerful new industry body, set up in response to the ongoing crisis in the construction sector, said a poll of 50 of its member companies shows that more than 1,550 jobs have been lost among them since June 2007.

Brendan Cunnane, the Secretary / Treasurer of the Construction & Property Group said today:

“The results of our straw poll show just how serious the situation has become. Using our figures, we believe that tens of thousands of jobs have already disappeared or they are most certainly at risk. We have reached a position where building on many sites across the province has completely ground to a halt. This is having a major impact on the local economy and it is imperative that all participants in the sector act collectively to get this key area of the local economy moving again.

“Otherwise there is a real fear that there will be total market failure in Northern Ireland and a sustained period of recession. In particular we are asking the Assembly, Executive and the local banks as key enablers in the sector to work with us and resolve these issues by finding a zone of possible agreement to move forward.”

“We need to urgently seek a solution to inject life back into the sector and restore employment and market confidence.”

The Construction & Property Group was created following a series of public meetings during July, bringing together developers, builders, contractors, suppliers and those involved in the professional services affected by the crisis in the residential construction sector.

Its main goal is to highlight the turmoil in the property and construction sectors and to engage with the Assembly and Executive and to work in collaboration with the major banks to introduce liquidity into the housing market to avert total market failure.

The group constitutes a cross section of the property development and construction industries across Northern Ireland and has also drawn interest from a number of professional services that supply and advise the property sector.

Since its inception the group’s meetings have been attended by over 400 individuals representing some of the largest and well know property development and construction companies in Northern Ireland.

Brendan Cunnane said:

“It is critical that everyone involved in the house building sector pull together to seek a way out of this crisis. We are seeking to avoid further turbulence and we have proposals which we would like to discuss with the elected representatives and the banks that have the potential to correct the market and set it on an even keel.

These include:

• A  commitment from all the major financial institutions that they will not take any steps which would further destabilise the market;
• A serious effort being made by the local financial institutions to reintroduce liquidity into the market by ensuring that affordable mortgages are available, particularly to first time buyers;
• The reintroduction, and adequate funding, of co-ownership by the Executive;
• An urgent review of the comprehensive spending review by the Executive to ensure social housing investment and shared equity schemes are more available to low income house seekers.
The group is now looking to increase its membership and is calling on those involved in the construction industry across Northern Ireland to join the group.

A delegation from the group recently met with the Assembly’s Enterprise, Trade and Investment Committee and has also held meetings with representatives from all the major parties.

This entry was posted on Thursday, July 31st, 2008 at 9:31 am and is filed under Construction and Property Group.