Rural areas will face serious economic consequences if the decline in construction is to continue, according to the Irish Rural Link.

Delegates attending the organisation's national conference in County Cork, heard how the building trade is a main off-farm activity for many farmers across the country, and provides a means of secondary employment, especially in areas involving transportation.

The Irish Rural Link raised its concerns amid a general nationwide decline in the building and construction trade.

A concern echoed by Chief Executive of Ballyhoura Development, Carmel Fox, who said the rate of expansion in the industry during the past decade, is a key issue.

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The conference discussed the 80% rise in construction employment in Cork, between 1996 and 2002.

Ms Fox said the economic sustainability of rural areas, particularly around south and east Limerick and north east Cork, depends greatly on external employment means.

The decline in building jobs may result in an adverse financial impact in these places.

"In order to counter balance this dependence, these areas need to develop their own resources and potential," she said.

The Ballyhoura Chief Executive warned that a lack of jobs and sector transitions should not force the migration of potential labour. Ms Fox said people should receive encouragement to continue to live in rural communities, through quality services and job opportunities.

Talented and highly educated young people must also be urged to stay in rural areas, in order to attract high quality jobs and innovative businesses.

Ms Fox called for an investment policy for rural areas to combat the decline experienced in communities across Ireland.

(PR/JM)