Executive suffering 'delivery sclerosis', Assembly told

The Executive needs to shake off its "delivery sclerosis", the Assembly was told tonight.

Urgent decisions must be made with the North’s construction industry facing thousands more job losses by next summer, Mark Durkan (SDLP, Foyle) warned.

Stormont unanimously passed a motion calling for ministerial action on the housing crisis.

SDLP leader Mr Durkan claimed there had been “delivery sclerosis” in the Executive.

“Just as we all complain about planning control and approval, our financial control doesn’t lend itself toward production,” he added.

House prices in the North are expected to fall 40% from their 2007 peak by the end of next year, a recent Ulster Bank Quarterly Economic Review warned.

With thousands less developments planned, a speaker in the Assembly blamed banks for fuelling an unsustainable land price boom.

Sean Neeson (Alliance, East Antrim) said: “Now that the Executive is meeting again, and we welcome that, I believe that the Executive has to take responsibility to bring forward some of the major projects that are in the pipeline.

“Urgent decisions are needed in that regard.”

He called for more social housing to be built.

“The banks have contributed very, very greatly to the present crisis,” he added.

He added the value of land increased substantially at an unsustainable rate.

According to Finance Minister Nigel Dodds, up to £86.5m (€101.2m) will be available to help bring forward major infrastructure projects for the beleaguered construction industry in the North.

Although it has not been decided where the money will go, Mr Dodds said yesterday he had decided to accelerate funding for investment in the local economy over the next two years.

Builders have been pressing for development contracts like a new hospital for women and children and road improvements to be brought forward.

The construction industry had warned thousands more faced losing their jobs by next summer because of the house-building downturn and the shortage of government work.

Health Minister Michael McGimpsey has expressed frustration at not being able to build a new hospital at the Royal in west Belfast sooner because of lack of money.

Deputy First Minister Martin McGuinness (Sinn Fein, Mid-Ulster) told the Assembly investment in infrastructure had increased from £1bn (€1.18bn) just over five years ago to almost £1.4bn (€1.65bn) last year and ministers planned to continue the upward trend.

“This is the measure of progress we have made and a clear signal of the Executive’s ambition to go further,” he added.

“I want to emphasise again our concern for the well-being of the construction industry.

“Not only is it vital in helping us to deliver the investment strategy, it also has a critical role in working in partnership with us to unlock the potential for procurement to play an active and effective role in the process of tackling patterns of socio-economic disadvantage.”