Jersey's Chamber of Commerce is warning other building firms could fold, saying the government has failed to take any decisive action to support the sector.

Following the collapse of a fourth major contractor in 18 months with the closure of Mitchell, the business group says the government needs to 'get real' and announce measures that will 'get Jersey building again'.

Mitchell Building Contractors ceased trading this week with the loss of 33 jobs.  It follows the collapse of Kalmac, JP Mauger and Camerons.

Simon Matthews, the Chair of the Chamber of Commerce Building, Housing and Environment Committee, says little action has been taken since Camerons' demise in February 2023, except for increased burdens on the industry:

"Government have though announced plans to raise the Minimum Wage to the Jersey Living Wage by 2026, removed the laws permitting a reduction in the Minimum Wage for apprentices and school-leavers, failed to spend in line with the commitments made in the 2023 Government Plan, delayed the start of construction works on the New Healthcare Facilities Program, increased the costs of second homes (e.g., buy-to-let rental units), and increased the costs of home purchasing."

While he welcomes the recently-announced Infrastructure and Construction Pipeline as a step in the right direction, he says now is the time to 'get real' with a package of support measures.

Mr Matthews says that needs to include a list of shovel-ready public projects for open tender this year and next, details of the promised support package to help firms pay a higher minimum wage from next  April, the urgent reintroduction of an apprentice wage rate, and faster reforms to the planning process.

"Jersey Chamber are tired and frustrated that the present Council of Ministers do not recognise their role as the major client to the construction and development sector, and that this role involves careful stewardship of their activity to ensure it delivers the best value for money solution for Islanders. Now is absolutely the time for the Council and their Government to step-up to the plate, and deliver on this role."

Meanwhile, the Jersey Construction Council has given its own reaction to the closure of Mitchell's.

JeCC, Chairman Adrian De Gruchy commented: “We are saddened by the news about Mitchell Building Contractors having to cease trading with immediate effect and the impact this has on their staff, sub-contractors and suppliers.

This unfortunate news follows the recent lauch of the “Island Construction and Engineering (ICE) programme”, which should give businesses some confidence that there is a proposed pipeline of projects and enabling works to allow other developments to commence.

Despite recent business closures, the industry has a wide range of professional tradespeople, associated suppliers and consultants, with good long term career prospects. We will continue to work on site ready projects of all sizes and for private and public sector clients, to #GetJerseyBuilding again."