BY MARK McKELVEY

The downturn in the construction industry, coinciding with the housing market slump in the past year, has forced many local business into liquidation, was described as a "crisis" this week as this serious issue was debated in Stormont.

Following extensive research, by contacting between 150 and 200 locally based contractors, West Tyrone Sinn Féin Assembly member Barry McElduff tabled a motion expressing his concern about the job losses in the construction industry that was passed unanimously.

The motion called on the Minister of Finance and Personnel to establish a working relationship with all his Executive colleagues and key stakeholders from the industry to devise a strategy aimed at creating further opportunities and sustaining jobs in this sector.

Addressing the Stormont chamber on Monday, Mr McElduff revealed that the construction industry has an annual total output of approximately £3.2 billion and employs some 85,000 people in the North alone. However in the past few months 1,500 jobs have been lost, for a variety of reasons, but mainly the slowdown in house building and the flatness of the market.

Mr McElduff said, "I assert the importance of the construction industry, which could rightly be described as the backbone of the local economy throughout the island, North and South.

"There is serious concern in the industry and fear for its short-term future. If the construction industry sneezes, the entire economy catches a cold. Building suppliers, planners, architects, engineers, plant-hire companies, surveyors, estate agents, solicitors, banks, advertisers, shops and even hot-food counters will all feel the pinch and experience the knock-on effects.

"During the past week, I wrote to builders and contractors in West Tyrone asking them for feedback on the issue. I have been told that rather than enabling development, the planning system frustrates it. It holds up major construction projects, draws out decision-making; and creates lengthy delays in the processing of planning applications.

"The system is too slow. The Assembly tries to attract inward investment and build hospitals, schools and houses. Two years is too long to wait for a planning decision. Indeed, many developers wait much longer which is crippling the construction industry.

"The industry tells me that banks need to be more flexible and lenient. In the current climate, they are slower to give out much-needed loans and constantly push for payments, showing no understanding of circumstances.

"The construction industry is facing many opportunities — as well as threats and challenges — but it remains a backbone of our economy. The Executive, departments and ministers are being called upon to intervene and to breathe life into the construction industry, to sustain current jobs and to create future opportunities.

North Antrim SDLP member Declan O'Loan, reiterated Mr McElduff's concerns describing it as a "serious situation" with jobs "evaporating'.

"There is stagnation in house construction, which has enormous consequences for developers, on whom the industry depends, and there are heavy consequences for building workers."

Providing some optimism for the future existence of the industry, The Minister of Enterprise, Trade and Investment Nigel Dodds confirmed that public sector spending is set to increase.

The DUP Minister said, "Sustained investment in infrastructure is absolutely crucial to the future of Northern Ireland and necessary to transform the Province into a successful, competitive regional economy with high-quality public services.

"The good news about the future is that the level of public-sector spending is to increase significantly with the investment strategy for 2008-11 and beyond. The investment strategy sets out the Government's infrastructure investment proposals, which offer an unprecedented opportunity for the construction industry. The 10-year strategy was agreed by the Assembly in January, and Departments have now been tasked to deliver capital investment of £1.8 billion in this financial year, £1.7 billion in 2009-10 and £2 billion in 2010-11. Most of that investment will relate to construction projects, and it represents a step increase over recent allocations and a real opportunity for the construction industry."