Budget 'Missed Opportunity' For Infrastructure, Says CIF

The body representing Irish builders has blasted the Budget as a 'missed opportunity' to support infrastructural expansion - with €6.2bn wiped from the State spending programme in the next four years.

Civil engineering, mechanical and electrical, and specialist contracting firms will be eroded by the government's 'failed' spending plans, according to the Construction Industry Federation (CIF).

CIF Director General Tom Parlon: "For all the talk about prioritising spending on infrastructure, the revised Capital Investment Programme announced in the budget amounts to a €6.2 billion cutback over the period 2009-2013."

He said spending is cut by nearly €2 billion in 2009 alone.

"CIF acknowledges that Government was faced with significant challenges but there was widespread agreement in the run up to the budget that priority should be given to infrastructure spending.


"With the value currently available to public sector clients, the reduction in capital spending in the budget represents a missed opportunity for the State."

Mr Parlon said, in contrast to the stumbling block for UK capital investment schemes, in Ireland there are already plans in place which would not imped advancing projects.

Projects including the upgrade of Dublin's Newlands Cross Junction, the N18 Gort to Oranmore Road, the N25 Carrigtwohill to Midleton Road in Cork and the N5 Bypass of Longford are reported to be amongst the first casualties of the cutbacks, according to CIF.

"In effect we're seeing cutbacks by stealth and many of our companies report that their pipeline of work has virtually dried up.

"Already this year, contracting companies have, on average, reduced their workforces by 25% and by the end of the year the figure will be closer to 40%," suggested the building boss.

Mr Parlon said the situation is now so grave that Irish companies are actively seeking contracts abroad.

"This scenario represents a significant loss to the Irish economy," he warned.

Mr Parlon insisted these cutbacks are occurring at a time when intense competition for work is resulting in incredible value of money for the State.

"As well as maintaining jobs and skills within our contracting companies, the State is guaranteed an excellent rate of return on this investment," he said.

The CIF boss added: "If Ireland is to recover from the current downturn we have to get our infrastructure right."

(PR/JM)