Building Firms 'Going Under', Says MLA

A south Antrim MLA has warned construction firms in the Province are 'going under', and has called on the NI Government to better influence lending giants, who have contributed to sector difficulties.

Thomas Burns has said he is concerned about the current construction industry climate.

The SDLP MLA attended a recent public meeting, held by the Department of Trade, where over 100 stakeholders met to discuss the on-going crisis in the sector.

Mr Burns said the so-called 'credit crunch' is affecting a wide scope of people, none more so than those experiencing "considerable difficulties" in the construction and property industry.

"This sector has been a significant driver in the economy of Ireland both North and South but now it is in crisis. However this crisis is not entirely of the industry’s own making," said Mr Burns.


The Assembly member said banks must face up to their part in the property debacle.

"For so long ago they (the banks) were encouraging the developers' behaviour by offering mortgage packages of up to 125%.

"Now the same banks are putting the squeeze on the property and construction industries," he said.

Difficulties have now been compounded by the lack of affordable housing, prohibiting many from purchasing a home, according to Mr Burns.

The MLA said: "Banks are benefiting from the Bank of England liquidity scheme but in circumstances where all of us, as taxpayers, are essentially underwriting liquidity for the banking sector, should it not be doing more to ensure greater liquidity in the construction and property sector?"

"Businesses in that sector in Northern Ireland are going under. Many feel that they will be made to walk the plank soon by banks, partly because of the lack of liquidity in circumstances where house prices are falling," he added.

Mr Burns has called on the government to find a solution to the problem, by intervening to make banks more socially conscious.

(PR)