Reviving the construction industry :

Swift govt action vital

by Thilak Silva

All stakeholders in the construction industry have been facing a difficult time since January. Thousands of people directly or indirectly involved in construction projects face problems due to certain projects being temporarily suspended.

Before January 8, technical personnel including those who passed out of Higher Technical Diploma awarding institutions were in great demand.

The construction industry was facing an apparent short supply of technical personnel for its projects before January 2015, but today such Higher Diploma Awarding Institutions are finding it difficult to get placements for industrial training of its students. The construction industry has lost its momentum to a such a level that the people concerned are now worried.

Among the people who are complaining, there are two factions. One set of people are those who were benefited by the corrupt system of the previous government and the others are the common people who have been affected by the actions of the new government.

Promises

If the government wants to genuinely fulfill the promises it made to the people before the elections, then a lot needs to be changed and people should feel the changes soon.

The present leadership should act fast and remedy the situation.

This writer makes following suggestions to revive the industry:

1. Appoint efficient and effective people to the institutions that play a major role in the construction industry.

We have not seen much change in the institutions after the new appointments. The same old crowd who call themselves 'Industry Experts' and the mafia, who control and manipulate the industry for their own benefit are still seen at every major event of the construction industry.

This gives the impression that we cannot expect a big change unless the system is totally reassessed and new measures are taken to revamp these institutions. The institutions are CIDA, VTA, NAITA, UNIVOTEC, NHDA, SEC, SD and CC, CECB and CEB.

When making appointments, the government should bring in honest and creative people to find solutions for the current problems and meet new challenges. Rotating the same set of people over and again will not bring in new thinking or the changes that were promised before the elections.

2. Increased interactive communication with the people and industry stakeholders (listening to the people).

It is always good to get the feedback from the public and industry experts on matters related to the industry. Although advanced and easy communication tools such as internet were not available at the time of President Ranasinghe Premadasa, any citizen in the country had the opportunity to write to him to vent any grievance or to make a suggestion for improvement. Such communications were acknowledged and acted upon. It is too disappointing that today nobody in the ministries seems concerned about encouraging a communication link with the public.

For example, if you send a letter to the email address of the Prime Minister, neither will you get an acknowledgement nor a communication regarding what action has been taken. When you go to the web page of Ministry of Housing and Samurdi, you find that there are no contact details to communicate with them. This shows their indifference towards the people who have elected them to their current elevated positions.

It is hoped that this matter will be taken seriously by all ministries including the Prime Minister's office. Getting a feedback and sharing ideas with the people and industry experts are very positive ways to show people that politicians and bureaucrats are serious about meeting the expectations of the people.

3. Show the world that a Unity Government is a workable solution and can survive the next five years.

It is important to win back investor confidence. Everything will depend on how fast the new government will begin the process which will be positively felt by the people and the outside world.

4. Take immediate action to recommence government projects which were put on hold.

Rather than spending a lot of time investigating corrupt activities that took place during the previous regime, the highest priority should be given to recommence government projects which were put on hold. Many people who worked in those projects have lost their jobs. While people expect the present government to expose the culprits and punish them under law, higher priority should be given to bring the situation to normal.

The pace of development set in motion by the previous government needs to be re-established.

5. Port City project. The project may be given the go ahead to recommence under a limited scope to mitigate the adverse impact and long-term risks.

6. Find solutions to the issues and challenges of the construction industry.

If the country is to undergo a construction boom, there are several burning issues that should be addressed and long-term solutions should be found.

(a) Shortage of technical staff. The number of people passing out with Higher National Diplomas and National Certificate Level Courses will not be adequate to meet the demand for technical personnel. At present we get people at the level of Engineering Assistant through NDT, NDES and HNDE courses conducted by three government institutions. Construction companies need these people in large numbers.

A senior lecturer of the Institute of Engineering Technology, Katunayake, who has been in service for the past 30 years, told this writer that government financial allocations are becoming less and it is becoming difficult to manage these higher educational institutions.

The salary structure for lecturers and instructors does not attract qualified young engineers.

It is also necessary to increase the intake of students to these three higher diploma awarding institutions to supplement the anticipated increase in demand for technical personnel.

(b) Shortage of skilled manpower. Skilled workers are in short supply.

This has prompted several Chinese and Indian construction companies to bring in skilled workers from their own countries. Such migrant workers can create long-term issues and will increase the cost of construction.

It is important that the government take action to attract youth completing GCE (Ordinary Level) and those who drop out of school before the Ordinary Level to join vocational training institutes. Awareness campaigns need to be launched at school level to make students aware of the earning capacities and demand for these trades. Today, in some instances, skilled workers earn a higher wage than the people who supervise and manage them. For example, a Tiller earns a daily wage of Rs. 2,000.

(c) Shortage of construction material. As it has been discussed over the past several years increasing prices and short supply of river sand had hampered large construction projects and has increased cost of construction.

The government should give incentives to local or foreign companies to invest in dredging off-shore sea sand and invest in washing plants having the adequate capacity to supplement the sand supply to the construction industry. Alternatives such as manufactured sand also should be promoted.

Although dredging licences were issued by the Geological Survey and Mines Bureau several years ago, no company has so far ventured out to supply washed sea-sand to the market, may be due to various obstacles and lack of support from the government.

The Sri Lanka Land Reclamation and Development Corporation sells sea sand which are stockpiled for a period of time to undergo elimination of salt through the natural process of getting washed by the rains. However, engineers still have doubts about recommending sea sand washed by rains due to the uncertainties in the level of salt elimination through natural means.

Sea sand processing through mechanical means will satisfy quality needs of large projects.