Action needed amid surge in north building failures

An “alarming” rise in Scottish construction firms going bust requires immediate action to prevent further job losses in the Highlands, industry bosses have warned today.

Insolvency figures released yesterday show 49 Scottish building firms were forced into compulsory liquidation during the first three months of 2012.

The Scottish Building Federation (SBF) said: “In total, 198 construction firms have gone bust in Scotland in the past 12 months; a rise of 29% on the preceding year, 113% on two years ago and 161% on the year to March 2009.

SBF chief executive Michael Levack said: “Far from showing signs of recovery, trading conditions for the Highland construction industry are actually getting worse.

“If we look back to the year to March 2009, the number of construction companies forced into liquidation has skyrocketed from 76 then to 198 in the past year; a rise of 161%.

“As the results of this week’s local elections take shape, I hope all newly elected councillors will take note of the crisis our industry faces and the huge impact this is having on jobs, s k i l l s and economic prospects throughout the Highland region.”

“Politicians at all levels of government can and must do more to prioritise investment in building the homes, schools, hospitals and other facilities our communities need.

“Without a pipeline of new work, more construction firms in thehighlands face the real prospect of being forced out of business and many more construction jobs will be lost.”