Business

Stormont budget cuts could put people at serious risk of harm, construction groups warn

Northern Ireland Construction Group calls for the immediate restoration of the Executive to address the budget crisis

The Northern Ireland Construction Group has warned that some of the options under consideration by Stormont's departments could put people at serious risk of harm.
The Northern Ireland Construction Group has warned that some of the options under consideration by Stormont's departments could put people at serious risk of harm.

An umbrella body representing the north’s construction industry has called for the immediate restoration of the Executive to address the budget crisis at Stormont.

The Northern Ireland Construction Group (NICG) has described the financial situation facing departments as “critical”, warning that some of the options under consideration could put people at serious risk of harm.

The group is made up of nine trade bodies including the Construction Employers Federation, Federation of Master Builders, Royal Institution of Chartered Surveyors, Royal Society of Ulster Architects and Institution of Civil Engineers.

It says the recent budget announced by the Secretary of State, Chris Heaton-Harris, suggesting departmental budgets are being cut by just 0.4 per cent, masks the true impact, as it does not reflect the extent of pressures due to inflation, rising costs, increasing demands and pay pressures.

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In a joint statement, the NICG described the options for Stormont’s departments as “stark”, warning that it will have a significant impact on people visiting, living and working in Northern Ireland.

The Department of Education has already announced it will not be awarding any new contracts for extensions or new schools in 2023/24.

But, the group said it is particularly concerned at the continued underfunding for both the operation and maintenance of essential infrastructure: “Such assets underpin the daily functions of our society and dramatic cuts to these will have far-reaching implications.”

The umbrella body said there is “alarm” in construction circles over proposals by the Department for Infrastructure to cut costs by switching off streetlights, cutting winter road gritting, reducing water services, and resorting to ‘emergency-only’ services for road maintenance and flood risk management.

There is also concern at proposals by the Department for Communities to cut the budget for the Housing Executive and public realm schemes, while the NICG said the cut to the economy department’s budget will impact skills and education initiatives.

“The feedback on the departmental proposals from the groups we represent is alarming as they will impact on every citizen and visitor to Northern Ireland – and some of the options under consideration could well put people at serious risk of harm,” said NICG chair, Jenny Green.

“Beyond that, there are implications looming for the wider economy and, in particular, for our young people.

"The NICG understands that the budget situation is difficult, but,if allowed to continue, we will see skilled workers seek opportunities elsewhere and will reduce the scope for skills development across our workforce. This will reduce our economic output and our attractiveness for inward investment in the future.

"Political leadership is needed and NICG calls for an immediate return of the NI Executive and the Assembly.”

Meanwhile, the body representing the north’s 20 housing associations called on Chris Heaton-Harris to increase the DfC budget in order to meet the target of building 2,200 new social homes this year.

Seamus Leheny, who heads the Northern Ireland Federation of Housing Associations, said: “We are lurching slowly and surely toward a crisis in housing in Northern Ireland, with an ever increasing waiting list, and growing numbers of people living in housing stress. It is quite clear that we need to be building more homes.”