A staggering 60% of Irish contractors questioned in a recent survey said they are not building at all.

Figures, collated by stockbroker Merrion, have suggested almost half (45%) of the builders interviewed did not expect to complete any houses in 2009.

Thirty-one firms contributed to the investigation, which found 68% of builders predict house prices to continue to fall next year.

Seven percent said they expected falls between 10% and 20%.

The firms in the Merrion study represented just over 5% of total house completions last year.

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According to Merrion, housebuilders have suggested a deeper and longer lasting downturn than previously thought.

Many think its will be upwards of 12 to 18 months before the overhang of housing stock is cleared from the market.

The report comes as one of Ireland's leading contracting firms predicted 50% shrinkage of the domestic building industry.

Sisk Managing Director Tom Costello said he expected the country's construction industry to eventually be just over half the size it was during the peak of the building boom.

Mr Costello was addressing delegate at the Society of Chartered Surveyors conference in Dublin last week.

The building boss said the state should 'frontload' the National Development Plans to bolster the ailing construction trade, and could take advantage of the excellent value for money that it could now get for projects.

(PR)