Mr. Tom Parlon:

A statutory instrument is read into law here and the following day all skilled rates are increased by 10%. We have lobbied Government and there has been no facility to recover that increase. I just noticed out of the corner of my eye concerns expressed over one of our companies which is in financial difficulties. There is no question that it is a difficult environment, with the rate of real inflation. The chartered surveyors have have come up with a figure, I believe, in excess of 6% in the last 12 months. Labour is an increasing cost, which is way beyond what the SEO rates are. If one is hiring bricklayers or blocklayers at the moment, they can practically name their price, because they will move on to another site. Likewise most of the commodities, as soon as they become scarce, have been moving in that wrong direction. The facility to take advantage of that when one tenders, very often particularly regarding State projects, arises where it could be 12, 18 or 24 months before one can go on site following the awarding of the tender. One is then stuck with the fixed price. That is a real concern and is a big challenge for the industry.