The NI Housing Executive has been praised for maximising its extremely limited funding in continuing to target new house construction in Northern Ireland.

NI Social Development Minister Margaret Ritchie has welcomed the Housing Executive's support for small and medium sized businesses in the construction sector.

Speaking in mid January, she said that the NIHE has managed to ensure many schemes will still go ahead this year, despite the capital not coming in due to the slump in house sales.

"For some time I have flagged up the fact that there would be a shortfall in the housing budget as a result of the worldwide economic downturn, resulting in very low house sales and consequently low capital receipts.

"However, it is important that, even with limited resources, we do all that we can to help kick start the economy," she continued.

"Small and medium sized businesses are the backbone of the Northern Ireland economy and I have asked the Housing Executive to prioritise work that brings real benefit to construction workers at this time.

"I am pleased that they have found a way to let these schemes proceed," she said, explaining that the Housing Executive began the year needing to raise about £80 million from house and land sales.

In the event, estimated receipts are likely to be vastly lower - around £8 million.

Therefore, much of the resultant shortfall has been covered by reallocations from the Department for Social Development and extra funding provided by the Department of Finance and Personnel and any additional funding received before the end of the financial year will be invested into the new build programme.

Overall though there was some bad news on new build schemes and Margaret Ritchie noted: "I am disappointed that a number of new build schemes have to be deferred until April.

"However, I am fully committed to meeting the Programme for Government target for new build and also the other priorities in the New Housing Agenda," she confirmed.

(BMcC/JM)