Polish Construction Booms

Poland's Government To Centrally Control Polish Building Costs

Classified Polnews

Warsaw, Poland 4 June 2007 In a move described as reminiscent of the days of Communism in Poland, the Polish Government is planning to institute central controls over the costs of building materials.

The demand for building materials in Poland has far outstripped the supply.

Prices are rising rapidly and builders have to wait weeks and months for back ordered materials.

The cost of supplies has risen, for the most part, because of the shortage of labor in the Polish market. Polish companies have had to increase pay scales to attract workers.

And seeing the opportunity to make fast money, speculators, according to Poland's Deputy Prime Minister Przemyslaw Gosiewski, have entered the market and are artificially forcing prices up.

Gosiewski promised that the Polish Government will do something about the rising prices. There may be audits of companies, price controls or other solutions proposed.

He gave no indication of any solution that would encourage increased production or alleviation of the labor shortages in the building materials production sector.

According to commentators, demand grows due to the requirements of the Euro 2012 football competition, the problem is likely to get worse. Government regulation of companies could possibly stifle competition.

Commentators quickly pointed out that central control was the hallmark of Communist Poland. A return to the ways of Communist Poland could cause long lines for building materials to once again return to Poland.

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