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Construction industry in dire warning over lack of infrastructure spend

Another report on the construction industry claims that the Northern Ireland Executive is failing to invest sufficiently in public buildings and infrastructure.

The Construction Industry Group Report, to be presented to the All Party Group on Construction tomorrow in Parliament Buildings, shows that public sector construction output in 2010 was worth just over £1m, amounting to a spend of £590 per head, which is £145 or 16% less than the UK average.

Only Wales had a worse record, spending £544 per capita, £191 or 21% below the UK average.

The report says that if public construction output in Northern Ireland is below the UK average, there is a strong case to suggest that the current infrastructural deficit that exists will grow.

The document shows that public construction output in Northern Ireland has historically accounted for a higher proportion of overall output when compared to the other parts of the UK., but that in recent years the gap has been closing.

By 2010 the proportion of construction output that was public (40%) was approximately the same in all parts of the UK.

One of the group members, the Quarry Products Association of Northern Ireland, has warned that with reduced public spending, lack of credit and the "enormous" levels of bad debt within the construction industry, 2012 could see a significant number of companies going out of business.