| 58. |
The last few years have been
especially wrenching for the construction
industry. The industry has experienced 9 consecutive
quarters of decline. In 1997, total contracts
awarded were worth $24 billion. In 2002, it
dropped to $14 billion. |
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| 59. |
This adjustment was inevitable
as the construction industry had to resize
and consolidate after the excesses of the
property boom in the 1990s. The Government
has not tried to boost the construction sector
with massive public works programmes. It is
not realistic to try to sustain the old levels
of activity. Also, pump-priming will not work
in our small and open economy. However, it
is worthwhile to bring forward infrastructure
projects that we intend to undertake anyway
within a few years. This will not only help
to create some jobs, but also let us take
advantage of the current low prices to get
better value for our money. |
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| 60. |
Government agencies have identified
more than 60 public sector infrastructure
projects that can be advanced. In total, contracts
amounting to more than $600 million will be
brought forward and awarded in FY2003 and
FY2004. These are projects worthy in themselves,
such as development and improvement works
for roads, schools, community clubs, parks,
and drainage and sewerage systems. Most of
the projects are small, and so are likely
to benefit local contractors and create spin-offs
for local sub-contractors and suppliers. The
Minister for National Development will elaborate
on measures for the construction industry
later in the debate. |
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