Lack of projects is hurting construction

Wednesday 28th December 2011, 2:29PM GMT.

UNDER-INVESTMENT in capital projects is damaging for the local construction industry, building firms have said.

Some of the island’s largest construction companies were speaking in response to Treasury and Resources minister Charles Parkinson’s summing up in the Budget debate.

He said that the lack of spending demonstrated that the States was utterly failing to comply with its fiscal policy on capital investment.

‘The fact is we are spending nothing like 3% of GDP per annum on capital investment,’ he said. ‘While that may be very helpful in terms of cash flow and short term budgetary implications, the implications for the construction industry today are damaging and the long-term consequences for the island’s infrastructure could be severe.’

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1
nobby

December 28, 2011 at 7:12 pm

Let’s spend, spend, spend.

Wait a moment, are we supposed to be saving money?

I think the construction industry will only be happy when we give them money for doing nothing – not far of it now with the extortionate charges they’ve bene making of late.

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2
nocon

December 28, 2011 at 10:51 pm

Maybe the construction industry should club together, finance a project and liase with The States to get the money paid during the project, in phases.

I think a new wing on the PEH, two new schools, a new Courts building and proposals for Airport, Harbours, Leale`s Yard, Data Park and new Mental Health Facility in the pipeline is enough to keep the Industry in work for a few months. The last five years has been very kind to the construction industry considering the financial situation in the world today. Do the same as everyone else and tighten your belts.

I think if you add up the cost of each of these projects you will find it`s more than the 3% per annum of GDP.

Oh wait, I forgot the Local Industry hasn`t enough expertise to make qoutes for these larger projects have they, because The States have to keep taking on outside companies to do the work?

Happy days are here again, well soon anyway.

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3
blogger

December 28, 2011 at 11:28 pm

Nobby, not everyone in construction charges extortionate rates. If you really want to see extortionate rates then go and see a dentist or advocate to name but two examples.

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4
j

December 29, 2011 at 8:29 am

There has been a huge amount of spending on major construction projects over teh past 10 years. Unfortunately the majority of it has been farmed out to UK contractors with imported labour and materials.

Maybe if the states had spread out their projects and employed locals this wouldn’t have been an issue.

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5
jim

December 29, 2011 at 7:48 pm

We as an island spend a huge amount on large projects. Let’s just favour some local labour first. I have seen so many companies let alone States departments employing from the UK then expecting local companies to pick up the pieces, leaking roofs, shoddy finishing’s … If the UK don’t want us to export our LVCR goodies then let’s not import our construction teams. Save the monies on legal arguments and offer some incentive to local firms to build on their already excellent services. Buy Guernsey, Build Guernsey, Sell Guernsey.

If we bring in teams from the UK they don’t even leave a tax contribution before they leave. Local labour pays a good chunk of their earnings back into the tax coffers, so if a local company is 10% more expensive, than a UK competitor, it will still be less expensive for Guernsey as the tax collection back will be greater than the higher initial tender.. Plus it keeps our workers employed and just as important skills up to date.

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