Dodds Reinforces Government's Commitment to Delivery of Investment Strategy

Finance Minister Nigel Dodds met the Construction Employers Federation (CEF) today 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.

Notes to Editors:

1. Details on the Investment Strategy can be obtained from:
   
Strategic Investment Board Ltd
Clare House
303 Airport Road West
Belfast
BT3 9ED
Tel: 028 9081 6181
Fax: 028 9081 6181

2. http://www.sibni.org
   The Construction Industry Forum for Northern Ireland (CIFNI) provides a strategically focused interface between representatives from Government and the construction industry, where both parties can consider matters of mutual interest. The Chairman of CIFNI is the Director of Central Procurement Directorate, Department of Finance and Personnel.
   
   CIFNI is comprised of officials drawn from the Government Construction Clients Group (GCCG), industry representatives drawn from the colleges of the Construction Industry Group (CIGNI) and Trade Union officials nominated by the Northern Ireland Committee of the Irish Congress of Trade Unions.
   
   CIGNI membership includes professional bodies, contractors, specialist sub-contractors and suppliers and is the umbrella body which represents all sections of the industry on CIFNI.
   
   Further details on CIFNI can be obtained from:
   
Construction Initiatives Branch
Central Procurement Directorate
Clare House
303 Airport Road West
BELFAST
BT3 9ED
Tel: 028 9081 6850

3. http://www.cpdni.gov.uk
   
4. The Construction Employers Federation is the only certified employers organisation for the construction contracting industry based in Northern Ireland. It has a membership of approximately 1,300 companies of all sizes and across all sectors of the construction industry from civil engineering to general construction, house building and maintenance and repair companies. Federation member companies account for just over 72% of Northern Ireland’s total construction output. CEF headquarters are on the Malone Road, Belfast. Telephone: 9087 7143.
5. Media enquiries only to DFP Communications Office on 028 9052 7644 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned