ISLAND builders have expressed concerns that the credit crunch could hit local trade – but most claim to have been unaffected so far.
Core Construction owner Neil Lamb said he had heard worried talk. ‘When I’m down at the builders’ merchant I hear other tradesmen chatting, saying they find business is getting a lot tighter,’ he said. ‘I think it is definitely having a bit of an effect. It is certainly slowing down a bit at this point.’
He thought the effects of financial difficulties in the UK would be noticeable in Guernsey in the near future. ‘In the next six months, we will feel it a lot more over here,’ he said. ‘I feel people will be a bit scared to do big building projects.’
He said banks were being a little irresponsible in their lending habits.
‘It’s naughty of them to lend people money to buy a dwelling, then not lend them money now to do it up. Now those people are sitting on a dead duck.’
He added that a small firm such as his, with only five employees, was less under threat because it did not take on the sort of big project that people might now avoid.
‘We are only five people so we don’t need massive jobs to keep us going, but there are people who are struggling.’
Goddard Builders partner Dave Goddard confirmed that smaller businesses such as his were all right at present. ‘As far as small businesses are concerned, we are still busy, still ticking along,’ he said.
And Norman Piette chief executive Tony Gallienne dismissed the worries.
‘We haven’t noticed – business is as buoyant as it was prior to the credit crunch,’ he said.
‘We see no signs of a let-up in building activity, either this year so far or in the near future.’
He said the core of Guernsey’s economy was the finance industry and that there was a reliance on it to gauge whether Guernsey would be affected by what is going on elsewhere.
‘Some make concerned noises while some are more optimistic than others,’ he said. ‘Given our finance industry, we are probably more immune to the volatility seen elsewhere in the world, but we saw Fortis nearly going under – we will have to wait and see.’
Guernsey Building Trades Employers’ Association president David Duquemin said it was difficult to anticipate what might or might not happen.
‘It is hard to predict – nobody could have predicted what has happened in the last couple of weeks with the banks,’ he said.
He added that the impact on the island could be delayed.
‘Guernsey tends to follow the UK in these trends, but perhaps about six months behind.’
He said business would be partly reliant on how comfortable people and banks felt with their money.
‘It has a lot to do with confidence, how much banks are willing to lend people.’
He too said he had not noticed any effects so far.
‘I have not heard of any projects being abandoned,’ he said.
Article posted on 6th October, 2008 - 2.29pm
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