Boosting the construction sector is one of the key issues in the economic recovery of the entire economy.

That's according to the Scottish Government, Northern Ireland Executive and Welsh Assembly Government who have issued a call to the UK Government to take urgent action following last year's Comprehensive Spending Review and its subsequent impact on each country.

After Wednesday's Joint Ministerial Council meeting in the Cabinet Office in London, the heads of all three devolved assemblies said, "growth in construction sector output would help to drive the recovery and deliver a welcome boost to employment".

They jointly called for support for economic recovery by investing in infrastructure with a decision needed to accelerate public sector capital investment.

"We call on the UK Government to provide resources and flexibility to enable cost effective, and targeted, additional capital investment programmes to support growth and protect jobs," a joint statement said, also calling for more flexibility on unspent funds.

"As part of this, (they should) reverse a unilateral decision to write off accumulated stocks of End-Year Flexibility.

"These stocks - amounting to several hundred million pounds previously allocated to Wales, Northern Ireland and Scotland but not yet spent - should be restored to the devolved administrations to support the economic recovery.

"We also call on the UK Government to provide additional flexibility to the devolved administrations to grow their economies, including revenue raising and borrowing, without impacting negatively on their block grant," said the statement.

On the continuing shortage of credit for smaller companies, they said: "It is unacceptable that many businesses are being prevented from expanding or are faced with significant increases in lending charges.

"We need to ensure there is in place transparency and accountability in the flow of finance for SMEs (smaller businesses). "We must also ensure that the planned £1.5bn Business Growth Fund is implemented now to support lending to viable companies."

The three administrations also called for action to counteract rising fuel and transport costs noting a sharp increase in fuel prices as a result of rising oil prices.

"These increases have been compounded by last month's rise in VAT and fuel duty. As a result petrol prices are at now record highs," the statement continued.

"We call on the UK Government to take urgent action to address the rising price of fuel by postponing the scheduled duty increase in April 2011.

"This would help stimulate the wider economy by protecting motorists, road hauliers and in particular remote rural communities from high and volatile fuel costs

"These are issues of tremendous importance. Economic growth is necessary if all of our people are to prosper.

"Economic growth is necessary to support the creation of sustained job opportunities for those currently facing unemployment, including a potential lost generation of young people.

"We have and will continue to raise these issues with the Coalition Government," the top politicians concluded on Wednesday.

Welfare

Also commenting, after the meeting, NI's Social Development Minister Alex Attwood said of welfare reform: "I again made it clear to the Deputy Prime Minister Nick Clegg and to Lord Freud, the Welfare Reform Minister, that much of the welfare reform agenda appeared not to recognise the particular circumstances in Northern Ireland, including the high levels of disadvantage and our continuing economic difficulties.

"The welfare reforms that London 'thinks may work in the South East of England is not going to work in the North East of Ireland'.

"I again argued that when the Assembly legislates for welfare reform our law and our practice must recognise our circumstances," he insisted.

(BMcC)