High fuel prices to affect construction industry - NCC boss
High fuel prices to affect construction industry - NCC bossBy Joan Chirwa
Monday February 19, 2007 [02:00]
CONSTRUCTION projects risk being delayed or abandoned due to rising prices of fuel in the country, National Council for Construction (NCC) executive director Dr Sylvester Mashamba has said. And the construction sector last year recorded a 10.9 per cent decline in value added growth.
During a press briefing in Lusaka yesterday, Dr Mashamba said the construction council was concerned with the ever-increasing prices of petroleum products, and that this would negatively affect the construction sector, which was heavily dependent on fuel. "We are concerned with the increase in fuel prices because this will affect the sector," Dr Mashamba said. "Unless this is contained, some projects which are supposed to be undertaken this year might not take off or they might be delayed because fuel prices continue to go up." Dr Mashamba said the government could intervene in the rising prices of fuel by reducing excise duty on petroleum products. "Government can do something about this by ensuring that taxes on fuel are lowered. Otherwise as things are now, the construction sector will continue getting affected by these prices," Dr Mashamba said.
And the constructions sector last year grew by nine per cent, down from 19.9 per cent recorded in 2005.
Dr Mashamba said: "This is the first time in six years that the industry has recorded a single digit growth. We expected an average growth of 17.5 per cent last year considering that there was an upswing in the use of cement during the year." He urged government to liquidate the debt owed to local contractors. "Of particular concern is the money that government continues to owe the construction sector. This is affecting the operations of the contractors. How do you expect a contractor to finish work in good time when government owes them huge sums of money?" Dr Mashamba asked. "The last time government settled debt for the construction sector was about two years ago when it paid K180 billion, and remained with K200 billion."
Dr Mashamba further said the release of only K2 billion for the construction sector last year, which was 30 per cent of the total allocation in the 2005 budget, was a disappointment to the sector. "We hope that government will look at this issue. We expect that the money allocated should be released in good time for people to carry out their duties effectively," said Dr Mashamba.
Labels: CONSTRUCTION, DOMESTIC DEBT, ECONOMY
posted by MrK @ 2:48 AM
1 Comments:
This only goes to prove that all this attraction of foreign companies does not lead to real or sustainable growth that ordinary people can participate in.
You will see real growth, when consumers start demanding the local version of Home Depot, because they have the money to buy the things to they need to extend their homes or build new ones. Without a consumer boom, there will be no economic growth.
This government thinks that the economy is all about big business and the state. In fact, it is all about what the state and business can do for the consumer. If you look at the USA, 2/3 of the economy is created by the consumer, and 80% of all economic activity is between american citizens and between american businesses.
America isn't sitting back and waiting for 'foreign investors' to 'develop' them.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home