Dodds Recommits Government To Construction Investment Strategy

Northern Finance Minister Nigel Dodds met the Construction Employers Federation (CEF) this week to discuss the Investment Strategy for Northern Ireland (ISNI) and the outlook for the construction industry.

The Minister and John Armstrong, Managing Director of CEF, reviewed overall progress on the delivery of ISNI and discussed current industry pressures resulting from the slowdown in construction activity, particularly within the housing market.

The Minister took the opportunity to state his belief that while the construction industry was currently experiencing uncertainty, he was hopeful that Government's continued focus on infrastructure delivery would go some way to compensate for this.

He said: "The Construction Industry is one of the largest industries in Northern Ireland with an estimated output in 2007 of over £3.4bn and a workforce in excess of 75,000 people.

"Government spending on construction has been increasing significantly over recent years. In the past four years, the total public sector spend on construction has risen from £676m to in excess of £1.2bn. This means that the public sector represents about 40% of the total turnover of the industry.

"I will be working closely with my Ministerial colleagues in order to ensure that Government works in partnership with the construction industry at all levels to deliver ISNI effectively. I am hopeful that increased investment by Government will offset some of the current pressures on the construction industry."

John Armstrong discussed the seriousness of the impact of the housing market downturn on the construction industry. He said "The rate of house price inflation experienced in the early part of 2007 was unsustainable. However, despite house builders having reduced their prices significantly in recent months, construction of houses has continued to slowdown significantly.

"The lack of liquidity in the mortgage markets has meant that potential house buyers have not been able to afford to finalise purchases. Of further concern is the impact the downturn in house building appears to be having on the wider economy."

He added: "House builders are now offering the best value on the market and with the banks starting to offer more attractive mortgage packages it is a good time to buy new build."

John Armstrong welcomed the Minister's commitment to the delivery of ISNI and stated: "The Civil Engineering and General Contracting sectors are currently operating well below full capacity and their forecasts for the next two years are not positive.

The industry therefore commends the Minister's commitment to effective delivery of the ISNI and we look forward to continuing to work with Government on the detail of Departmental Capital Investment Programmes through the Construction Industry Forum for Northern Ireland.