Closure of Mitchell Building Contractors
The Chair of the Chamber of Commerce Building, Housing and Environment Committee, Simon Matthews comments on the statement issued by the directors of Mitchell Building Contractors who have ceased trading with immediate effect:
''The Jersey Chamber of Commerce are saddened to hear the news that one of our members, the building contractor Mitchell Building Contractors, are appointing liquidators and ceasing trading with immediate effect. Our thoughts and best wishes go to all the customers, staff, suppliers and subcontractors that will be impacted by this decision.
This is the fourth major contractor in the past 18 months that have stopped trading in Jersey. Collectively, this presents a serious impact on the capacity of the local construction industry, and the disruption to the supply-chain should not be underestimated.
Jersey Chamber have called in the past on the Government of Jersey to intervene, when commenting on the previous losses of Camerons, J P Mauger, and Kalmac. However, rather than heed these calls and respond with a firm action plan and measures to support employees in the Island's fourth-largest sector, they have instead failed to take any decisive targeted action. Our worries, therefore, are that this may not be the end of business failures in the sector.
Since the announcement from Camerons in February 2023, the Government have though announced plans to raise the Minimum Wage to the Jersey Living Wage by 2026, removed the laws permitting a reduction in the Minimum Wage for apprentices and school-leavers, failed to spend in line with the commitments made in the 2023 Government Plan, delayed the start of construction works on the New Healthcare Facilities Program, increased the costs of second homes (e.g., buy-to-let rental units), and increased the costs of home purchasing. This is, in every sense, a burden for a development and construction sector already reeling from high interest rates and high inflation impacting private-sector demand and appetite to commit to capital projects.
The Government's recently announced Infrastructure and Construction Pipeline, whilst absolutely a step in the right direction and very welcomed, is but only a promise to do something... we still aren't seeing many spades in the ground and projects out to tender for the remaining contractors in the local construction industry.
Jersey Chamber call on the Government to get real if it is serious in supporting the local industry, and announce please a series of packages that will help 'Get Jersey Building' again. In particular, we would like to see:
1. A list of shovel-ready projects, of all scale and sizes, that will be put out to competitive, open tendering during 2024 and 2025.
2. Details of the promised support package for small and medium-sized businesses that will be impacted to changes in the Minimum Wage.
3. The reinstatement of the Apprentice Wage in the next six months, to incentivise and support local building companies to get recruiting apprentices and school-leavers.
4. Evidence of how local companies will be able to benefit from work opportunities on the New Healthcare Facilities Program.
5. A promise from all arms-length organisations to follow the Public Finances Law and the Public Finances Manual, and make available to local businesses, through open, competitive tendering processes, all works and services opportunities on their capital programmes.
6. A promise from the Council of Ministers to hold the Government departments to account for their actual spending committed in the 2024 Budget, and in particular to demonstrate how this spend will prioritise the local construction industry in the future.
7. The continued support and acceleration of planned reforms and efficiencies to the Planning and Building permissions processes, to streamline the processes for applicants and their agents.
Jersey Chamber are tired and frustrated that the present Council of Ministers do not recognise their role as the major client to the construction and development sector, and that this role involves careful stewardship of their activity to ensure it delivers the best value for money solution for Islanders. Now is absolutely the time for the Council and their Government to step-up to the plate, and deliver on this role."
