A proposal by The Left to convert the bankrupt construction company Cardoso into the nation's first publicly owned construction firm faces criticism from the Chamber of Skilled Trades and Crafts, citing efficiency concerns and legal limitations.
Following the bankruptcy of Manuel Cardoso Constructions, The Left recently suggested that the state should take over the failing business and transform it into the first publicly owned construction firm.
According to Norry Dondelinger, chief economist at the Chamber of Skilled Trades and Crafts, this is a bad idea however: "If you do that for this business, why not for others?"
Given that the Chamber represents private trades and crafts businesses, Dondelinger argues that the private sector can work more efficiently than a government-operated business. He referred to the Housing Fund and the National Society of Affordable Housing - both publicly owned - and the fact that they acknowledge not being able to build as quickly as the private sector.
Reason for the difference in pace are legal limitations affecting the public market, Dondelinger added.
Recent months have seen Manuel Cardoso grapple with an array of problems, including unfinished projects, delayed payments, and a sluggish market, leading to salary payment difficulties and the loss of several employees. From a workforce of 150 at the beginning of the year, the number had already dwindled significantly.
However, the entire residential construction sector faces adversity, with orders and building site activity slowing down. In addition to the small-sized companies that have already gone out of business, the LCGB claims that another company with more than 100 employees is in a very tense situation.
