Surveyors: Capital spending limit 'will lead to job losses'

The Society of Chartered Surveyors has criticized the decision by the Government in today's Budget to limit the capital spending programme to 3.6% of Gross National Product.

The SCS said 200,000 construction jobs had been lost in the last three years and reducing the capital spending programme "would lead to further job losses".

The SCS said direct Exchequer funding for new public building and civil engineering works had been cut back during the last two Budgets and the collapse of the construction sector had spread to the wider economy.

However, SCS President Peter Stapleton said the society welcomed the fact that the National Pension Reserve Fund would be used to finance infrastructural projects and the society would work closely with the Government to ensure that this new funding mechanism would offset the ongoing cuts in direct funding.

Mr Stapleton said: "While great strides have been made to complete Ireland’s infrastructure jigsaw, the last pieces need to be put in place. We are pleased that government will harness the power of the National Pension Reserve Fund and use this period of low tender prices to finish the national public infrastructure project.

"Nonetheless, more direct investment is needed to secure jobs in the short-term and position Ireland to return to growth in the long-term."

The SCS welcomed the substantial curtailment of Stamp Duty for residential property sales which "will provide a kickstart to the current very inactive market" and which will stimulate and improve the volume of transactions.

The society also welcomed the Government's decision to introduce an energy efficiency initiative for domestic houses.

"This measure will cut consumers energy costs while at the same time increasing employment," Stapleton concluded.