Speaking following a call for more money to be put into the construction sector, the Minister highlighted the current level of investment in public sector construction projects and said: “The construction industry makes a vitally important contribution to the economy of Northern Ireland. It is therefore of particular concern to the Executive that the housing sector has faced such a serious downturn in recent months. We all feel the impact of this downturn in some way whether it be family members losing their jobs, falling house prices or difficulties in accessing mortgage funding.
“However, I believe that whilst the private housing market is experiencing real difficulties, the local construction industry has benefited significantly from investment by the public sector, which has been continuously increasing.
“During this financial year alone, it is expected that Government will spend in excess of £1.4billion on infrastructure projects. As recently as 2003 Government spending was only £676million. This represents a dramatic increase in expenditure which has only been achievable by the devolved administration recognising the importance of investment in infrastructure and working with the construction industry to deliver.”
During this financial year, road projects worth £420million are under construction. These include the Westlink and M2 widening scheme; £265million in hospitals and health care facilities including the Royal Critical Care Unit and redevelopment at Altnagelvin; £216million in waste water infrastructure including the Belfast Sewers Project and 10 waste water treatment plants throughout Northern Ireland; £83million in colleges of further education including new facilities at the Northern Regional College and South West college; £233million in schools including new Grammar schools in Ballynahinch & Newry and a new Integrated school in Omagh.
The Minister continued: “This level of expenditure is making a real impact on local communities in Northern Ireland. As a direct result of this investment local people will have improved facilities and at the same time the construction industry has benefited from the increased expenditure.
“Whilst the public sector in Northern Ireland is already a major investor in construction, making a contribution in excess of 40% of the total spend, it is even more important in these difficult times that the public sector maximises the funds available for infrastructure investment.”
Departments have indicated that over 60 projects, with an aggregated value in excess of £400million, are either are to be advertised before the end of this financial year or are already at various stages in the procurement process. These projects include, amongst others, the South Eastern Regional College in Bangor at £10million and 10 schools ranging in value from just under £2million to Magherafelt High School at over £11million. In addition to this £400million Roads Service are also scheduled to commence the procurement of the new A5 western corridor from Aughnacloy to Londonderry which will represent an investment of over £600million.
Public sector investment is set to continue to increase over the remaining years of the Investment Strategy. The gross capital investment planned for the next two financial years is expected to be in excess of £3billion.
The Minister concluded: “It is vitally important that Government ensures that all of these projects move forward to the market place as quickly as possible. For this reason, I have established a Construction Industry Forum - Procurement Task Group. This group provides a strategically focused interface between representatives from Government and the construction industry. The group has already made good progress on ensuring that those projects that are scheduled to move forward to the market place before the end of this financial year are progressing.
“However, Government’s efforts must continue and I am committed to ensuring that projects scheduled to go to the market early next financial year also move forward as quickly as possible. I have therefore asked the Task Group to also monitor, and report to the industry, progress on all major projects programmed for spend next financial year. This hopefully will go some way to provide the industry with confidence that significant Government investment is set to continue.”
Notes to Editors:
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