CIF says Budget's investment cut 'a blow to jobs'

Builders' lobby group the Construction Industry Federation (CIF) said the decision to cut nearly €1bn from the Government's capital investment programme is "a blow to jobs (that will) significantly impact the Exchequer".

The CIF said money would be lost through lost tax income and increased social welfare payments.

However, the CIF has welcomed the continued availability of full mortgage interest for first time buyers who purchase their new homes in 2010. Brian Lenihan said mortgage interest relief would be abolished in 2017.

Speaking after the Minister’s Budget speech, CIF director general Tom Parlon said: "The Government’s decision to target the capital investment programme is regrettable in light of the huge loss of employment already in the construction sector and the impact this is having across the wider economy."