PRESS STATEMENT – PRESS STATEMENT – PRESS STATEMENT

IMMEDIATE RELEASE

SDLP MLA BURNS: CONCERNED AT CONSTRUCTION INDUSTRY CRISIS

SDLP South Antrim MLA Thomas Burns has expressed his concern about the current crisis in the construction and property industry.  

Mr Burns stated, “People from all walks of life are suffering in this current credit crunch. In essence the credit crunch has become a consumer crunch.

“But this has caused considerable difficulties for those in the construction and property industry.

“Just last week I attended a public meeting of more than 100 worried stakeholders and facilitated a meeting with the committee of the Department of Enterprise, Trade and Investment.

“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,

“Banks must share the responsibility, for not so long ago they were encouraging the developers’ behaviour by offering mortgage packages of up to 125 per cent.

“Now the same banks are putting the squeeze on the property and construction industries.

“These difficulties are compounded by the fact that many homes remain out of the reach of potential buyers on account of a lack of finance.

"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.

"But people cannot buy houses because the cost of mortgages is too dear.

“Now the government needs to find an effective method of intervention by influencing banks to behave in a more socially responsible manner.”

ENDS