Merseytram
SHELVED transport schemes in cities such as Liverpool should be given Government funding to prevent the construction industry collapsing, according to a report released today.
At least 300,000 construction jobs could be lost in the next few years unless the Government brings forward a number of "much-needed" projects, according to The Royal Institute of Chartered Surveyors (RICS).
The report says new orders in the industry had fallen by more than a third in recent months, and are likely to fall further as confidence continues to erode.
Advancing already planned construction and infrastructure projects would help to counter the sharp drop in activity in the construction sector.
Proponents of the shelved Merseytram scheme have welcomed the recommendation. Cllr Mark Dowd, chair of Merseytravel, said: "Merseytram is still on the agenda and obviously we would welcome funding from any avenue.
"If the Government is going to build itself out of the recession you can imagine what the tram scheme will do for the area.
"It will create employment, not just for those building the system but also for those working within it once it is finished.
"If the Government does decide to give finance for such schemes, we will be knocking on their door.
"It would benefit so many people who will use the trams."
Initial plans for Merseytram were put forward in July, 2000, but on November 29, 2005, Alistair Darling pulled the plug, after a total of £70m had been spent trying to set the system up.
The scheme was planned with three lines costing £900m, with Line One from Liverpool to Kirkby.
A damning Audit Commission report released in January criticised the use of public money in the scheme, and said Merseytravel did not pay enough attention to managing risks.
The body blamed "rogue officials" within Liverpool City Council for its failure.
However, if the proposal and schemes like it were brought to fruition, RICS say it could save the construction industry.
Government statistics showed the number of people working in the building trade fell by 17,000, or almost 1%, in the year to June and RICS warned that employment could fall by around 14%, around 300,000 job losses, unless action was taken.
More than 340,000 construction jobs were shed in the last recession in the early 1990s, and it took almost a decade for employment levels to recover, RICS said.
RICS chief economist, Simon Rubinsohn said: "The economic downturn will hit construction professionals, including quantity surveyors, project managers, plasterers, bricklayers and carpenters. Bringing forward capital funding for vital projects will have the advantage of delivering much-needed housing and infrastructure, but will also go some way to preventing an employment crisis in the industry."
