76% of construction companies have experienced black economy operations in last 3 months…..
76 percent of construction companies have come across black economy operations in the last 3 months. In a new Construction Industry Federation (CIF) survey on the black economy in the sector, 85 percent of construction companies have also come across an increased number of black economy operations in the lat 12 months.
Some other key statistics detailed in the survey include:
- Almost 20 percent of construction companies believe that black economy activity in the construction sector has grown by more than 100 percent since the downturn began.
- 52 percent of construction companies believe they have lost more than 5 jobs to black economy operations in the last 12 months.
- Just under one in four construction companies are aware of public contracts being awarded to black economy operations.
- 98.5 percent of construction companies believe black economy operators pay their workers with cash outside of the tax system.
- 65 percent believe that wage rates offered to construction workers in black economy operations are undercut by more than 20 percent.
- Almost one in two construction companies have come across clients who have experienced problems with black economy operators or the work they have carried out and 39 percent have been asked to repair work carried out by a black economy construction operative.
- 56 percent believe that the materials used by black economy operators are lower in quality.
- 93 percent believe the Government needs to take stronger action to regulate black economy operators in the construction industry while 74 percent believe the Revenue Commissioners should be responsible for ensuring regulations to combat the black economy are enforced.
