Leadership

SCS disappointed no budget action on construction decline

10.12.2009
The Society of Chartered Surveyors (SCS) has said it is disappointed that no action has been taken in the budget to get a handle on the unprecedented decline of the construction industry.

Minister for Finance Brian Lenihan TD announced a cut of €960m in capital investment projects in yesterday’s Budget 2010.

The President of the SCS Ken Cribbin said such a cut will compound a further increase in unemployment within the construction industry, where 100,000 jobs are already at risk in the first half of 2010 as a number of major infrastructure projects reach completion.

The SCS had called on the Government to implement the proposals of the Construction Industry Council (CIC), which called for additional investment in infrastructure.

This investment, equivalent to €5bn per annum for three years, would save 70,000 jobs while improving overall economic performance and competitiveness, the SCS said.

National Solidarity Bond a positive
However, the SCS did welcome the announcement of a National Solidarity Bond to allow the public to invest in Ireland’s recovery.

According to Cribbin, the bond will encourage investment in infrastructure. “It is important that such an initiative be expedited to protect jobs that are under threat,” Cribbin said.

The SCS also welcomed Minister Lenihan’s proposal to undertake an immediate review of property tax: “There is a need to widen the tax base as there has been a lengthy period of over-reliance on stamp duty. Such a tax should be implemented hand-in-hand with a reduction in stamp duty rates. The SCS would welcome the opportunity to have input into this review,” Cribbin said.

The society also said it supported the Minister’s Budget announcement to undertake an ‘efficiency review’ of local authorities.

“Streamlining the number and operation of local authorities will facilitate efficiencies in management structure. Consolidating the various local authorities should lead to improvements in co-ordination and implementation of planning and development policy,” Cribbin said.