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24/06/2010
Debts Blow For Beleaguered Builders
Just days after NI's top building sector employers' organisation warned that cutting the budget for new buildings and maintaining the infrastructure would hit economic recovery - it has emerged that several companies owed £ millions by two 'bust' building firms won't get a penny back.
The news adds to the woes of the beleaguered sector and comes after the Construction Employers Federation (CEF) issued its stark warning that the construction industry continued to shed jobs during the first quarter of 2010.
John Armstrong, CEF Managing Director said: "The construction industry in Northern Ireland has experienced one of the most severe and rapid downturns in history.
"When self employed workers are included, over 20,000 people have lost their livelihoods in the industry. The workforce has reduced by a quarter in only two years."
Following this week's emergency UK budget he said: "The Northern Ireland Executive and each Government department now has to decide where to make spending cuts.
"No one underestimates how difficult these decisions will be. It is important that Ministers and officials fully understand the ramifications of further reductions to expenditure on building and maintaining our infrastructure."
The number of construction employees has now fallen for nine consecutive quarters.
There are 33,900 direct employees in the construction industry, down 27% from a high of 46,290 in the final quarter of 2007.
"Every £1 invested in construction generates £2.84 in economic activity.
"Any reduction in the budget for building and maintenance work will therefore damage the overall economy and hinder economic recovery, the top executive continued.
"We believe it is essential that the decisions on cutbacks are well informed decisions," urging that public money needs to be invested in areas that will provide long term benefits for the economy in Northern Ireland.
"Construction must be recognised as the economic catalyst that it is," he said.
To illustrate how bad things are, it has now been revealed that the administrators of Eassda Ltd of Templepatrick and Euro Construction Corp Ltd in Waringstown owes unsecured creditors £1.35m and £2.61m respectively.
Both firms were placed in administration at the behest of their bankers in November.
According to the BBC, the unsecured creditors who will not be paid include a Dunloy building contractor who is owed more than £250,000 and a Belfast architecture firm, which is owed almost £60,000.
(BMcC/GK)
The news adds to the woes of the beleaguered sector and comes after the Construction Employers Federation (CEF) issued its stark warning that the construction industry continued to shed jobs during the first quarter of 2010.
John Armstrong, CEF Managing Director said: "The construction industry in Northern Ireland has experienced one of the most severe and rapid downturns in history.
"When self employed workers are included, over 20,000 people have lost their livelihoods in the industry. The workforce has reduced by a quarter in only two years."
Following this week's emergency UK budget he said: "The Northern Ireland Executive and each Government department now has to decide where to make spending cuts.
"No one underestimates how difficult these decisions will be. It is important that Ministers and officials fully understand the ramifications of further reductions to expenditure on building and maintaining our infrastructure."
The number of construction employees has now fallen for nine consecutive quarters.
There are 33,900 direct employees in the construction industry, down 27% from a high of 46,290 in the final quarter of 2007.
"Every £1 invested in construction generates £2.84 in economic activity.
"Any reduction in the budget for building and maintenance work will therefore damage the overall economy and hinder economic recovery, the top executive continued.
"We believe it is essential that the decisions on cutbacks are well informed decisions," urging that public money needs to be invested in areas that will provide long term benefits for the economy in Northern Ireland.
"Construction must be recognised as the economic catalyst that it is," he said.
To illustrate how bad things are, it has now been revealed that the administrators of Eassda Ltd of Templepatrick and Euro Construction Corp Ltd in Waringstown owes unsecured creditors £1.35m and £2.61m respectively.
Both firms were placed in administration at the behest of their bankers in November.
According to the BBC, the unsecured creditors who will not be paid include a Dunloy building contractor who is owed more than £250,000 and a Belfast architecture firm, which is owed almost £60,000.
(BMcC/GK)
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Northern Ireland WeatherThis Evening and Tonight:Rain clearing away east by early evening with some clear spells but a few showers likely to affect the North coast and other areas towards dawn, remaining breezy and mild overnight. Minimum temperature 9 °C.
