Construction industry "slowly grinding to a halt" GRTU warns

A GRTU survey among 40 major building contractors has found that 85% are not comfortable with their current level of orders and 85% are concerned about a slowing down of the economy. Many of the respondents expressed concern over a slowing down of orders, delays in MEPA permit approvals, delayed payments and falling demand for housing, the GRTU said.

When asked about their employment strategies, 76 percent spoke on reducing their full time workers, part-timers and sub-contractors.

The GRTU said that 87 percent of respondents did not view public policy as being supportive of the construction industry.

GRTU Director-General Vince Farrugia said the alarm had already been raised about the recession hitting the main economies. Malta had an open economy and its economic performance was closely aligned to the performance of the major economies, more particularly those in the EU.

He insisted that the way ahead was for more capital expenditure. The government , he said, should utilise the labour and resources that were becoming rapidly available to create those infrastructural and capital investments that would help Malta compete better once the European economies returned to growth.

"The picture emerging from the construction industry survey shows that this important sector of the Maltese economy is slowly grinding to a halt at a time when export manufacturing industry, the tourist sector and the services sector will surely suffer downsizing as a result of world adverse economic situations," Mr Farrugia said.

As a result, he insisted, the government, like all other governments, should channel money into the economy rather than projecting to raise its revenue by a further €185m.