Date: Monday 8 September 2008

ETI 03/08

Local Property Sector Concerns Raised With Banks

Banks are keen to build confidence in the property and construction sector, the Enterprise, Trade and Investment Committee heard today. Chair Mark Durkan and deputy Chair Jennifer McCann met with representatives from the four main banks and the British Bankers Association to discuss the downturn in the local economy and the negative impact this is having on the construction and property sector.

Following the meeting Mark Durkan said:

“At the last meeting of the Enterprise, Trade and Investment Committee, members heard evidence from representatives from the property and construction sector who explained to us the extreme difficulties they were facing. We invited the banks to meet with us to see what could be done to mitigate the impact of the downturn on the sector and the regional economy.

“In a positive engagement, the banks’ representatives reflected on the fall in the housing market and the fallout from the global economic downturn. In this context, they stressed that they were conscious of wider economic and social responsibilities in the region.

We discussed the position of existing mortgage holders and potential buyers as well as the difficulties facing some construction and development companies. The banks stressed that if any of their customers, business or householders, found themselves in financial difficulty, that they should immediately speak to their bank to see if they could work together to find a solution.”

Jennifer McCann added, “One of the key issues raised by the representatives of the property and construction sector was the knock-on effect that the downturn might have on those people employed both directly and indirectly in the construction sector. In our meeting the banks said they were keen to build confidence in the market and emphasised to us there remains an active mortgage market. “

ENDS

NOTE TO EDITOR

The Committee for Enterprise, Trade and Investment’s membership is:

Chairperson Mark Durkan MP (SDLP)
Deputy Chairperson Jennifer McCann (Sinn Fein)
Alliance Sean Neeson
DUP Simon Hamilton
Robin Newton
David Simpson MP
Sinn Fein Paul Butler
Independent Gerry McHugh
SDLP Alasdair McDonnell MP
UUP Leslie Cree
Alan McFarland

All enquiries regarding the work of the Committee should be directed to the Committee Clerk, Lucia Wilson, Room 424, Parliament Buildings, Belfast, BT4 3XX (028 905 21230).