The Scottish Building Federation has responded to the publication of a report by the Scottish Parliament's Finance Committee examining pressures on the 2010-11 Scottish budget as a result of the recession by calling for a "sustained commitment to Scotland's construction industry."

The report suggests that Scottish Government spending will decline over future years as public finances suffer increasing pressure as a result of the economic downturn.

SBF Chief Executive Michael Levack recently gave oral evidence to the Parliament Finance Committee's inquiry into the 2010-11 budget.

While he is convinced that the longer term prospects for Scotland's building industry remain good, he warned that a combination of factors could combine to make 2010 a challenging year for the sector: "Next year could be a particularly tough year for the construction industry. Many industry analysts predict that the construction sector will only return to modest growth in 2011.

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"A number of major infrastructure projects are coming down the line - including the new Forth Crossing and significant regeneration work in Glasgow in the run-up to the 2014 Commonwealth Games. But the bulk of this work will not start until 2012.

"Meanwhile, the £230m of accelerated capital expenditure brought forward from next year’s budget could leave a major gap in public funding for capital projects in 2010.

With last week seeing publication of the first business plan for the Scottish Futures Trust, we look forward to rapid and positive progress towards mobilising private sector investment in public infrastructure."

In this context, Michael Levack went on to stress the importance of maintaining strong support for the Scottish construction industry through this critical period: "As MSPs begin to scrutinise the detail of next year's Scottish budget later in the year, I hope they will understand the significant pressures Scottish building firms continue to face. Despite the increasing pressure Scotland's public finances are under, we need to see a sustained commitment to Scotland's construction industry over the course of next year."

Mr Levack said: "If we are ever going to deliver on the longer term goal of sustainable economic growth for the Scottish economy, retaining jobs, skills and capacity in the Scottish building sector must remain a priority."

(GK/JM)