May 19 - GSD Questions Sustainability Of Construction Scheme
The GSD says it is concerned about the future sustainability of the scheme introduced by Government involving the formation of construction companies.
The Opposition says that, in 2013, it uncovered “secret companies” registered at No 6 Convent Place owned by what it described at the time as “well-known GSLP supporters”. The GSD claimed that these companies were being provided with company services by public servants, contracts by direct allocation and subsidised labour using trainees from the Future Job Strategy. The GSD now asks whether, leaving aside its significant concerns about cronyism and good governance, this scheme is sustainable. The GSD now asks: “What will happen to these companies when the construction boom funded by public funding and huge debt ends and the Government has to repay that debt?” The party further notes that there has been a huge proliferation of construction companies in Gibraltar over the last four years and that these have more than trebled in number in that time.
GSD spokesman Elliott Phillips said: “Many of these are small companies which have relied on Government work and are now complaining to the GSD that after two or three construction jobs in exchange for taking on FJS trainees, they find themselves without work. The Government should explain very clearly to the owners of these companies and their employees what will happen when the construction boom ceases. The Government cannot create an artificial situation and wash its hands of the consequences.”
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