Big apple crunches jobs

Up to 10,000 housebuilding jobs in New York could be lost, if the city's mayor's proposed 30 per cent cut to the city's capital-spending budget is implemented, according to the New York Building Congress (NYBC)...

The Building Congress, which represents companies in the construction industry, is now pressuring Bloomberg administration officials to back off their planned spending reduction.

The trade organisation, which has secured the backing of 42 City Council members, has sent a letter to the letter, stating that the cut would deal a severe blow to the city's economy.

"The best jobs programme the city could possibly have would be to preserve the capital budget," said Dick Anderson, president of the Building Congress.

Cutting the city's £5.08 billion in capital commitments will save an estimated £156 million in debt service over the four-year life of the plan. But Mr. Anderson said the city could find savings or raise revenue elsewhere. He suggested a targeted hike in water and sewer fees as one possible alternative.

The letter states, "While we are mindful of the need to control our debt service, cutting capital budget spending in this recessionary period runs counter to the economic policies of President Obama and the federal Government, which seek to stimulate our economy with critical infrastructure spending."

Deputy Mayor Robert Lieber said he had yet to see the council members' letter. But he said the city is faced with rising health care and pension costs that are beyond its control and cuts therefore need to be made in other areas.

"The capital budget and debt service is something we can control," he said.
Mr. Lieber said capital cuts would not immediately affect jobs in the construction industry because it would take time for the cuts to filter into the marketplace."

Mr. Anderson disagreed. "Yeah, there's a lag on some jobs," he said, "but it takes effect in certain kinds of jobs immediately."

Source: www.homesoverseas.co.uk/news