More than 1 300 jobs in the Western Cape construction industry were lost — some of them to Gauteng — in the 12 months to the end of June 2002, Western Cape Premier Marthinus van Schalkwyk said on Thursday.
The loss of these jobs and the relocation of at least four large construction companies from Cape Town to Johannesburg, was clearly a cause for concern among all communities, he told delegates to the Western Cape construction summit in Somerset West.
While the construction industry in the province traditionally accounted for about 20% of the national construction market, this had dropped to about 13%.
It was clear the industry was over-dependent on government expenditure and government budgets.
”With more than 81% of the total national demand for construction work flowing from the public sector, it is apparent that budget cuts and stricter levels of fiscal discipline, combined with the instability of the value of our currency, sends shock-waves through the industry,” Van Schalkwyk said.
He said it would be impractical and unreasonable to expect that the construction sector to shift its focus to increasing private sector demand.
”Government will continue to be the main client and provider of infrastructure for the foreseeable future, but there is clearly a need to develop lower levels of dependence,” the premier said. – Sapa