Up to 20,000 construction jobs in Northern Ireland could be axed next year if the pace of work does not increase, the Construction Employers’ Federation (CEF) warned last night.

Since the summer, CEF estimates that 10,000 people have lost their jobs in the industry as the economic crisis deepens.

According to new figures from the organisation, 1,090 construction workers were forced to sign on the dole in November alone. Many others have left the country to secure employment or moved into different sectors.

However, CEF managing director John Armstrong has expressed concern that construction jobs hang in the balance unless Minister Margaret Ritchie receives adequate funding for social housing plans.

Mr Armstong fears that building contracts worth £20m could be shelved after the Social Development Minister claimed her housing budget had been slashed to help fund the economic aid package unveiled by Finance Minister Nigel Dodds on Monday. Ms Ritchie’s comments have been refuted by cabinet colleagues.

The CEF was broadly supportive of the Executive’s £70m aid package, praising its decision to free-up building projects worth £115m and speed-up planning applications.

But Mr Armstrong has now said: “The federation is very concerned that social house building and maintenance contracts that are already out for tender will be unable to proceed following a shortfall in the funds redistributed to the Department of Social Development.

“It is the federation’s understanding that this could amount to £20m of work not proceeding over the next three months.”

He added: “Social house building and maintenance is one of the most effective ways of getting construction spend on the ground quickly, thus keeping people in jobs.

This shortfall in funding could have a devastating effect on firms whose main activity is in the social housing building sector.”

The Executive’s economic package was unveiled on Monday to combat the effects of the credit crunch and was funded by Finance Minister Nigel Dodds redirecting money that government departments had yet to spend.

Ms Ritchie claimed she lost £30m from her budget and attacked ministerial colleagues. However, figures released by Mr Dodds last night showed that the cash taken from Ms Ritchie’s department did not come from housing projects, although she had hoped to have the cash redirected towards schemes linked to social housing.

SDLP deputy leader Alasdair McDonnell said: “Small to medium enterprises are vital to our economy and it is distressing to see so many going to the wall.

“Therefore, it is all the more bewildering why the DUP and Sinn Fein thought it was a good idea to snatch £30m from the Department of Social Development’s budget in the recent December monitoring round.

“It is clear if this money had been re-allocated in the manner in which Margaret Ritchie had intended it would have created or sustained a number of jobs and had a significant impact on the construction industry in addition to addressing housing need.”

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