Page 22 - cw--2-8

This is a SEO version of cw--2-8. Click here to view full version

« Previous Page Table of Contents Next Page »

Page 22 Contractors World - UK & Ireland Vol 1 No 6

continuing recognition that there is an urgent need to encourage economic growth in the UK economy, the Deputy Prime Minister has come up with very litle positve acton to help stmulate the recovery.

Commenting on the speech, Michael Ankers, said “It is encouraging that the government recognises the huge potential for infrastructure investment in k i ck star t ing pr i vate sector economic growth. However, it continues to preside over a public sector spending budget in which current expenditure contnues to grow and will rise by a further 10% over the next four years, whilst capital expenditure is set to fall by 20% over

the same period. Nothing in the speech suggests that the government is intending to address this imbalance.

“Whilst it is encouraging that government is looking to atract foreign investment into infrastructure investment in the UK, it needs to do more to create a framework whereby UK fnancial insttutons can also invest in long term infrastructure projects. There is no shortage of capital that companies are looking to invest and the government has to do more to ensure that this fnds its way into the kind of key infrastructure projects that Nick Clegg refers to in his speech.

‘Finally, the government has to resist attempts to hijack the proposed reforms of the planning system. For too long our cumbersome planning processes have held back both public and private investment in this country and the draf Natonal Planning Policy Framework sets out a far more positve approach that will encourage the right kind of investments in the right places.’

CECA has welcomed the speech calling for a new focus on clearing the barriers to major infrastructure projects in road, rail and digital communicatons as a means of acceleratng the economic recovery.

In his speech the Deputy Prime Minister announced that 40 of the largest planned schemes would be examined by Whitehall departments to ensure any barriers to their progress are removed, aiming to deliver the promised economic benefts as soon as possible.

CECA went on to say that the speech is another welcome sign from government demonstratng their awareness of the crucial importance of infrastructure development to any sustained economic recovery, as well as the short-term stmulus of the constructon work itself.

A CECA spokesman said, “It’s no secret that investng in infrastructure is a prety sure bet in terms of cost-beneft ratos, so the speech by Nick Clegg is another welcome sign that the government does appreciate the wider benefts of investng in communicatons and transport networks. Removing barriers to the fow of investment should help to boost the stutering economic recovery in the long-term, as well as providing short-term employment and stmulus. “But while this speech is welcome, with fgures just a fortnight ago showing near-calamitous order fgures for the constructon industry as a whole, a focus on haste is now required. Firms facing collapsing order books and margins squeezed between falling tender prices and soaring costs, literally cannot aford to wait much longer for new work.“So what is crucial is that these welcome words turn quickly into shovels on the ground. Only then will we see any return of confdence to the constructon sector, and hopefully the broader economy, allowing the much-hyped private sector-led recovery to really gain pace.”

1 . The Constructon Products Associaton represents the UK’s manufacturers and suppliers of constructon products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £50 billion and accounts for 40% of total constructon output.

2. The Civil Engineering Contractors Associaton represents over 300 contractors of all sizes, covering approximately 80% of the civil engineering market in Great Britain. [CW]

Will promised infrastructure investments come quick

enough to save the constructon industry?

Page 22 - cw--2-8

This is a SEO version of cw--2-8. Click here to view full version

« Previous Page Table of Contents Next Page »