Architecture Now / News / Davis Langdon PKS Say Implementation Of Public Capital Programme Is Critical

« Prev. | Next »

“Government is under-spending by 25% on construction projects – and this may harm economic recovery,” says Davis Langdon PKS.

Irelands leading construction consultancy firm Davis Langdon PKS (DLPKS) has warned that the current under-spend in the Capital Investment Programme may have serious consequences on the construction industry for the future should the trends continue.

Launching its Summer Review 2010 of the construction industry, Davis Langdon PKS say that according to the exchequer figures to June 2010, capital spend is 25% behind the profiled expenditure at the budget stage. With the Public Capital Programme (PCP) consisting of over half of the estimated construction output for 2010, at €6.5 billion, this is of grave concern for the industry and for the 150,000 people directly employed in it.

The latest Exchequer figures returns for the end of June indicate that capital spend is well behind the profiled expenditure at budget stage. For example:

· Education is -35.8%;
· Environment is -32.3%;
· Health -25.5%;
· Transport is -29.1%;
· Other is -12.7%;
· Total is -24.8%.

“Davis Langdon PKS predicted in January that the overall construction output for 2010 would be €12billion, which is down 37% on 2009, but the signs are that this figure may actually be worse if the capital programme is not implemented in full,” said Norman Craig, Davis Langdon PKS’s Managing Director. “Private capital expenditure is also likely to be behind arising from the restricted availability of finance and a general lack of confidence in the industry, and this again is a major worry.”

Posted: 28/07/2010 13:30:12

« Prev. | Next »