The Construction Industry Federation (CIF) is preparing to launch a campaign to counter the downturn in house sales, as building workers continue to be laid off.
Many small and medium-sized construction companies are laying off staff or winding up as a result of the slump. Kingspan Century timberframe home providers announced last Friday it was letting 24 staff go from its Dungarvan plant, because of ‘‘current market conditions’’.
A spokesman for Cleary Doyle confirmed that the contracting company was ‘‘restructuring’’. ‘‘The future direction of the company, and its restructuring, are the subject of ongoing negotiations with the unions,” he said. ‘‘In the normal course of events, where a job finishes and people are not needed, there are lay-offs.”
David Lane, south-east construction branch organiser of Siptu, said he knew of at least five companies that had laid off staff in the last few weeks.
These included three companies in Waterford - McInerney Construction, Frisby Construction and McDonald’s Construction - which shed around 60 workers. Apex Scaffolding in Carlow laid off 20 people two weeks ago, while Melvin Developments in Kilkenny let several workers go last month.
‘‘At the moment, virtually all house-building projects are at a standstill in the south-east,” Lane said. ‘‘But the same problems are affecting other areas, like the midlands and the west. Other construction companies are letting go of Irish workers - who were paid €14 an hour - and hiring non-nationals for €10 an hour. The only people who really monitor this problem are the trade unions.”
The CIF now plans to launch an information campaign to ‘‘promote positivity’’ in the housing market.
‘‘There is a need to counter the overt negativity out there,” said a CIF spokesman.
‘‘We want to point out the good value in the market in particular areas, the fact that mortgage interest relief is likely to increase this year, the €10,000 tax-free rent-a-room scheme, stamp duty saving and other facts like these. We are not out to spin anything, just highlight what is there.”
The Sunday Business Paost , 20 January 2008
