Builders urge action on recession

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A campaign to protect thousands of building jobs in the recession is to be launched at the Welsh assembly later.

The Get Britain Building coalition of construction organisations and companies is warning 300,000 jobs could be lost in the industry around the UK.

A 10-point manifesto includes calls for a cut in VAT for building repairs and targets for local authorities to identify land for social housing.

Assembly members from all four parties will be speaking at the launch.

The coalition predicted 90,000 jobs could be lost at small and medium-sized builders.

A survey by the Federation of Master Builders (FMB) found 61% of its members were expecting a fall in work during the first quarter of 2009.

Richard Jenkins, Wales director of the FMB said smaller companies were the backbone of the economy but were being hit hardest by the recession.

THE BUILDERS' MANIFESTO Cut VAT to 5% for building repair and maintenanceRestore empty homes in Wales and make existing homes more efficientReturn to 'responsible lending' and mortgage interest tax reliefWelsh targets to identify land for 6,500 affordable homesAssembly and UK governments to work closely to reform planning lawGovernment co-operation on public-sector spending plansPlanners drop demands for community contributions from developersPublic sector and contractors observe guidelines on prompt paymentReform stamp duty to only cover home value above the tax thresholdReintroduce empty property rate relief<i >Source: Get Britain Building</i>

"During the last recession the UK construction industry lost over 500,000 skilled jobs - we cannot allow that to happen again.

"We are not asking the government for a financial bailout, we are simply asking the government to allow our members and manufacturers to do what they do best and keep building a better Britain," he said.

Chris Pateman, the managing director of the Builders Merchants Federation said: "We all need the government to create conditions in which people can borrow money at sensible rates or have the confidence to invest their savings in those millions of pent-up garage conversions, house extensions and roof insulation jobs that can make an immediate and quantifiable improvement to individual families' quality of life.

"And, at the same time, improve the quality and energy-efficiency of the built environment, reduce the waiting lists for social housing and take some pride in the size, scope and skills of the nation's largest industry - building," he said.

The downturn in the economy has already effected the construction industry in Wales.

In February, the Flintshire-based builder Redrow said it was planning to cut another 90 jobs after revenues for the second half of 2008 had fallen by 58%.

Last summer, the house-builder Bellway halted construction of two blocks of flats in Cardiff Bay, including one in front of the Wales Millennium Centre - close to the Senedd building, where the manifesto is launched later.

But the company has now confirmed it hopes to start building again "soon" at a 17-storey tower at Prospect Place in another part of Cardiff Bay.

Work on a development in Cardiff Bay was halted last summer

The One Wales coalition agreement commits the assembly government to increasing the supply of affordable housing by at least 6,500 by 2011.

On Tuesday, the Finance Minister Andrew Davies brought forward £15m to support around 400 more affordable homes over the next three years.

A £15m deal to allow housing associations to buy unsold homes and plots from private builders was agreed by the assembly government in February.

A spokesperson for the assembly government said it was "more than ready" to discuss the points raised by the coalition.

"We listened to their calls at the first economic summit when the industry asked us to help their cash flow problems by purchasing the newly built properties they couldn't sell in order to help boost our supply of affordable housing.

"We are working with Shelter Cymru in order to address the issue of empty homes and we have extended a pilot scheme to make homes more energy efficient.

"We are also encouraging local authorities to release land for affordable housing and we are leading by example on this.

"We have also just announced that 40 schools and colleges across Wales are to benefit from nearly £109m of capital investment from the Welsh Assembly Government over the next three years including the delivery of 12 new schools."