Building output to see 'significant' decline
Published 15/03/2010 | 14:38
Irish construction output will see a "significant" decline in the next 18 months as Government spending on public works programs is reduced, according to a Construction Industry Federation report.
The value of projects shortlisted in 2010 will be €1.5bn at most, “which bears no relationship to the Government’s own commitment to invest €5.5bn in 2011, 2012 and 2013,” the federation said in the report, published today.
The Government aims to cut spending by €6bn in the next two years, to curb a deficit that reached 11.7pc of gross domestic product last year.
The recession has seen house prices fall 40pc since peaking in 2007 and an index of construction output in February showed a reading of 40.4. A reading below 50 indicates contraction.
The length of time between short-listing a project and building work starting has “increased significantly” while the conversion of tenders into starts is “as low as 60pc,” according to the report.