Speaking ahead of the housing debate Cable said the country needed to build an extra 100,000 homes a year, driven by housing associations and councils.
He told the conference the country needed a demand stimulus and said one big step would be carrying out the coalition’s commitment to get more houses built.
He said: “There is distress in the construction industry. The private market will only heal slowly because mortgages are scarce.
“What we need is an aggressive programme of house building by housing associations and local councils, with government providing guarantees so they can build, in large numbers, now.
“We need an extra 100,000 houses a year to meet demand. That would create half a million new jobs.”
Cable added: “The central point is that the country must not get stuck on a downward escalator where slow or no growth means bigger deficits leading to more cuts and even slower growth.
“That is the way to economic disaster and political oblivion. We will not let that happen. There is still time to turn the economy around.”
Mike Leonard, Director of the Modern Masonry Alliance, commented: “The MMA applauds the sentiment to build our way out of recession. We have been working with Mr Cable and the deputy leader of the Lib Dems Simon Hughes to promote this policy.
“We would caution, however, that the Coalition will be measured on outcomes rather than rhetoric. We have proposed an achievable program of 25000 additional public rented homes and we stand ready to help make sure this is delivered in 18 months.
“We are confident that the money can be found and that we have the permitted land, materials and skills to create the jobs and growth our economy needs.”
