The fears of the building sector have been proved right. The fact that the main manufacturer of iron bars, Desbro International stopped its production on 1st November is considerably slowing down activities on construction sites. According to the Building and Civil Engineering Contractors Association (Baceca), “big building sites have already stopped their activities because of the difficulty of finding iron bars”. The government’s decision to increase the price of iron bars by 20% is not expected to improve the situation as Desbro had asked for a 37% increase – even if the new price was already in force on Saturday.

An enquiry by the Consumers Protection Unit (CPU) on behalf of the ministry of Trade and Industry also revealed that the stock of iron bars is quite low in ironmongers’ shops, which could lead to a shortage in the coming weeks if the situation remains in deadlock.

As for other companies, they seem to have mixed feelings concerning the cabinet decision. While they all made different proposals for the increase, it seems the main winner in this trial of strength is Lam Po Tang and its partner Murray & Roberts. They had asked for a 17% increase and are said, according to the CPU enquiry, to have a stock of 4,000 tons of iron bars for building purposes. One of the managers, Derek Lam Po Tang, has however refused to make any comment so far.

<I>Tension seems to be at its height in the sector. While iron bar manufacturers continue to pressure the authorities, the situation is getting worse on building sites. The more so as there is allegedly a labour shortage.</I>

Joonas Co. Ltd, considered as another important supplier in iron bars, requested a 25% increase while Samlo Koyenco stated that it would not need any increase if all scrap metal suppliers were forbidden from exporting their production. Samlo managers even made it clear that, if the government agreed to their request, they could supply the whole market with iron bars.

After the suppliers’ and consumers’ associations’ refusal to see iron bars included in the Automatic Pricing Mechanism (APM), the government is studying other avenues. It could decide to remove the 30% customs duties on iron from countries outside Comesa. But this could affect the local industry.

Until the government takes a final decision, the whole industry may continue to suffer. “We are afraid that other companies will have to stop work on their sites if the situation worsens,” added the secretary of Baceca, Pierre Kelly. Many companies have had to slow down, as they fear a shortage of iron bars in the near future. “We are forced to idle. When we learnt that there would be problems getting supplies of iron bars with the interruption of production by Desbro, we built up a small stock on which we are still drawing,” commented a representative of Bhooshan Co. Ltd.

Another operator pointed at Lam Po Tang. “They told us that there was no electricity or that machines were not working. We can’t understand that explanation while 4,000 tons of iron were imported and have to be sold for Murray & Roberts.” But the Mauritian company asserted that they were waiting for 2,000 tons of iron bars to be tested by the Standards Bureau before being put on the market.

Tension seems to be at its height in the sector. While iron bar manufacturers continue to pressure the authorities, the situation is getting worse on building sites. The more so as there is allegedly a labour shortage. This has also been the bone of contention over the past week. While building firms claim that they are forced to import labour as they can’t find workers locally, construction workers took to the streets last Thursday to refute this assertion.

They stood before Government House to protest against the employment of 1,800 foreign workers in the construction sector. According to the Construction, Metal, Wooden and Related Industries Union, this can only harm Mauritians, who are “looking for secure jobs”.

The main problem, says the spokesperson for the union, Reaz Chuttoo, is the meagre allowance given to workers following training courses in the construction sector. Rs 3,000 is far from enough to motivate people to get trained and get a job in this sector, according to the trade unionist. The more so as the minimum wage is supposed to be Rs 5,800.

However, according to Raj Makoond, in charge of a sub-committee on worker training under the Empowerment Programme, the two issues have to be dealt with in different ways. “These courses target unemployed people only. No comparison can be made,” he commented. Another trial of strength seems to be on…