10 October 2008

Rhoda Grant, Highlands and Islands regional Labour MSP, says there are fears the full effect of the housing slump will be felt by Christmas and that it is time for action to help the Highlands buck the downturn in work for builders.

Following a number of recent exchanges in Parliament about the growing problems facing builders Mrs Grant says taking action now could significantly benefit our own local economy and stem the flow of job losses for skilled tradesmen.

"Evidence given by Tulloch as part of the rural housing inquiry to the rural affairs committee in Holyrood paints a very worrying picture.

"Tulloch has been one of our major housing suppliers and has employed a lot of people throughout the region for many years.

"To see the extent of their business slowdown, which will be mirrored in other building firms in the region, is of real concern," said Mrs Grant.

In evidence to the committee Neil Cameron a Director from Tulloch said that the number of joiners employed in Inverness by Tulloch had fallen from 50 to six.

He feared the full impact of the slow down in their industry may not be truly felt until Christmas and recovery may not be until 2010.

However Mrs Grant, the spokesperson for housing for Labour in the Highlands, says the industry could be given a boost.

"Action is needed and if the Scottish Government made a significant investment now into the affordable housing market we could kill two birds with one stone.

"We have heard from housing associations that the building costs per square metre have dropped in some areas by a third.

"Any investment in housing would mean the money could go further.

"More money in the system would keep the construction industry going and give good value for money for affordable housing meaning more for the outlay," she said.

"The Scottish Government has announced this week it has released £9 million pounds of the £100 million it had identified in the budget for housing and land banking across the country.

"This is to be welcomed but it is not new money and it is not enough.

"There is a very small window in which we can stimulate the building industry before we see companies down size to a point that there is no longer competition for these contracts.

"Then prices for building will be pushed sky high and we will get much less for our money."

She added: "While the global financial situation is obviously having an effect, the Scottish Government must also shoulder a fair bit of the blame for the slowdown in the local housing economy.

"Since the SNP took control of the Scottish Government they have slowed down and squeezed housing association funding significantly.

"The SNP also campaigned against the housing stock transfer in the Highlands which would have seen millions upon millions of pounds released for housing stock improvement and development.

"The amount they have put into new council house build is insignificant when compared to what they have done to limit cash elsewhere.

"Had the SNP not taken these disastrous policy decisions, then there would now be alternative work opportunities for the joiners and other trades now finding they are potentially without work.

"At a time when the private markets have slowed down, it is all the more important to maintain public investment."

Rhoda Grant concluded:

"The confident talk of the SNP that they would build huge numbers of new and affordable houses seems more and more hollow by the day.

"They now have no chance of doing that and that means more homelessness.

"It is sad to see local tradesmen losing out in part because of the short term decisions of the SNP Government.

"They need to bring forward new money, not just a tiny drop from an already identified budget.

"Tulloch is an innovative company and they will bounce back I am sure, but the government need to do more to support house building if that is to happen quickly."