THERE was perhaps some good news last week from the Secretary of State when it comes to construction and infrastructure. This comes after some less encouraging news.
The official figures for construction output in the second quarter of the year were released the week before last and showed that the total volume of construction output was 2.5 percent lower than in the corresponding quarter of 2017. The volume of infrastructure work was 7.3 percent lower.
New public infrastructure work effectively flat-lined compared to the quarter before, while in the 'other work' sector, public spending on new projects was the only sub-component to record a decline.
Then last week, we had the RICS and Tughans survey which pointed to a marked decline in infrastructure and public sector work during the third quarter of the year. The survey also reveals that local construction surveyors are the least optimistic in the UK about the next 12 months.
It would appear that this lack of investment and lack of confidence reflects to the continued absence of decision-making in government here and will add to concerns in the industry of a continuing drag on construction output in the future. Anecdotal evidence from surveyors certainly points in this direction.
Infrastructure investment not only provides short-term economic stimulus, it's critical to securing inward investment in the long term by increasing regional connectivity and competitiveness.
We need to see further progress on critical road network upgrades (vital for economic development in the north/west), the North-South interconnector (a project designed to secure the region's energy supply), the Belfast Transport Hub (a multi-modal transport development with additional commercial and retail space) and the Casement Park redevelopment (a sports stadium in the heart of economically deprived West Belfast).
Given the impact a lack of decision-making is having on our economy, RICS welcomes Secretary of State Karen Bradley's announcement last week that further flexibility will be granted to senior civil servants to take decisions in the public interest in Northern Ireland in the continued absence of local ministerial authority. The fact is that Northern Ireland's economic interests have been damaged by the protracted period of stasis in region decision-making, and action is much needed.
We remain convinced that Northern Ireland, its businesses and its people, are best served by locally accountable ministers taking decisions based on the interests of those they represent. Giving further powers to the Civil Service is not an ideal position, but it is necessary to defend our economic interests.
The proposals and guidance must be read in a broad manner which affords senior civil servants the latitude they need to take the decisions necessary to maintain our current position and advance critical projects. If interpreted in a narrow way, we have concerns that Northern Ireland's economy will continue to suffer.
Limitations on approving significant new policy, for example, could mean that Local Development Plans being advanced by councils across the region, and critical for modernising our stagnant planning environment, are held up at the final approval stage. Further limitations on significant public spending will undoubtedly impact the local construction and infrastructure sectors further.
In short, we welcome the proposals from the Secretary of State but believe that more will need done to safeguard Northern Ireland's interests in the period ahead. Without action, future reports on infrastructure activity will show further decline and the economic and social impacts will be felt by many.
:: Susan Mason is acting director of RICS Northern Ireland, the principal independent body representing professionals employed in the land, property and construction sectors. In Northern Ireland, the organisation represents over 3,000 cross-sectoral members comprising of chartered and associate surveyors, trainees and students.
