Government slowness in taking decisions is costing the construction sector 12,000 jobs and councils have a combined €1bn waiting to be allocated to projects, according to building sector lobby group Bouwend Nederland.

For example, €256m has been set aside for schools, €50m to restore listed buildings, €300 for infrastructure projects and €400m to improve sustainability, the report, quoted by BNR radio, said.

‘That money should be used as quickly as possible,’ the lobby group’s chairman Elco Brinkman said. The construction sector is expected to contract 10% this year because of the economic slowdown and malaise in the housing market.

Meanwhile, the Financieele Dagblad reports that building sector companies want to open talks with the unions about cutting nationally-agreed benefits, such as extra holidays for older workers and bonuses for weekend work.

‘Building firms are in deep trouble and the pay agreement is making it worse,’ said Bouwend Nederland negotiator John Knoester. ‘Wage costs are too high and we have not been able to make agreements on productivity.’