Thursday 21st October 2010 – FOR IMMEDIATE RELEASE
The unexpected cuts to capital expenditure in Northern Ireland could mean the already struggling construction industry grinds to a halt warns the Federation of Master Builders (FMB) Northern Ireland.
Maire Nawaz, Director of FMB Northern Ireland said:
“The construction industry in Northern Ireland has been severely affected by the economic situation and is still in recession. Nearly 55 percent of respondents to the FMB’s State of Trade survey for quarter three indicated that conditions had declined since the second quarter, meaning that Northern Ireland posted the most negative results in the UK for the fifth quarter in a row.”
Nawaz continued:
“As many homeowners have reduced spending on their homes many SME construction firms have had to look to the public sector to supply work to keep them going. The 37 percent cut in capital expenditure means that many of the planned infrastructure projects, such as schools, hospitals, roads and so on, that would have kept these companies going will be axed and along with them many thousands of jobs as construction companies struggle to stay afloat. The reduced spend on infrastructure will also have a detrimental impact on inward investment and therefore the longer term recovery of the Northern Ireland economy.”
Nawaz concluded:
“FMB NI is calling on the Northern Ireland Assembly to reallocate its spending to ensure that investment in infrastructure projects continues and provide work for many construction companies that are struggling to survive.”
