Building firms forecast decline

Building firms in Jersey are predicting a decline in business this year.

The downturn is being blamed on the reduction in States spending on new building projects and a slow property market.

Jersey's construction industry is expected to expand over the next year - albeit more slowly than before - according to retiring president of the Jersey Building and Allied Trades Employers Federation, Mark Palfrey.

Mr Palfrey, who has just stepped down as the spokesman for the industry, believes 2004 will be a year of stability for the trade.

His comments come as some colleagues find themselves with a variety of new properties they have been unable to sell because of a perceived downturn in the island's housing market.

Mr Palfrey said that while 2003 saw the industry overheating and needing to import more builders into the island, he was confident that, with the present level of unemployment in Jersey, he was confident work could be found for local trades people.

However, he warned the building industry could contract still further, if the limits on spending by the States slows down the development of new building in the island.