Leading University of Ulster economist Mike Smyth has today produced significant evidence that investing in social house building can make a major contribution to boosting the economy.
In his report, entitled "Addressing the Economic Downturn: the case for Increased Investment in Social Housing”, the influential economist concluded that: house building creates more jobs than other forms of capital investment; for every ten jobs created by building social housing, seven jobs will be created or sustained elsewhere in the Northern Ireland economy. Land and construction costs have all fallen sharply making this a good time to invest more in social housing. Investment in social housing counters deprivation and fuel poverty, and thereby takes pressure off budgets for health, education, crime reduction. Housing investment provides a significant boost to the economy, but also reduces housing stress, homelessness and fuel poverty.
Commenting on the report, Mike Smyth said: "Social housing has strong multiplier effects in terms of employment and has greater short-term impact on the Northern Ireland labour market than other construction investments. This is due to a higher labour-intensity in house building activity.
Social housing has strong non-monetary impacts on the economy and contributes more than some other types of capital investment programmes to the achievement of sustainable development.”
Responding to the report, Social Development Minister Margaret Ritchie said: "Mike Smyth is Head of Economics at the University of Ulster and an expert on the Northern Ireland economy. If he is arguing that investment in social housing is one of the best ways of countering the economic downturn, then we in government need to listen. If he is saying that investment in social housing can stimulate jobs like no other capital investment can do, then we in government need to act.
If we do not revise our spending priorities while this economic downturn persists, housing need will keep growing and the construction industry will continue to shrink.
The world has changed in the time since the Executive agreed a budget. Other governments have responded to these changes by channelling additional resources into house building. The University of Ulster paper supports the case I have been making at the Executive table. I hope Executive and Assembly colleagues will read this paper and support its recommendations.”
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