Construction Products Association: Key priorities for the new government

Monday, 12 April 2010 12:00 AM

All the main political parties are committed to creating a more sustainable built environment based around low carbon, water efficiency and responsible sourcing. Construction product manufacturers and suppliers are key to delivering these objectives but need the government to set a supportive framework which will encourage the investment in innovative products and solutions on the scale that will achieve the economies of scale needed to ensure they provide cost effective solutions.

WE THEREFORE WANT THE NEW GOVERNMENT TO:

. Respond positively to the work of the Construction Innovation and Growth Team on low carbon
. Commit to a long term framework which identifies the steps needed to reduce the carbon emitted from existing buildings with clear interim targets and funding mechanisms to achieve this
. Reduce the level of VAT to 5% on a wider range of construction products that deliver energy and water efficiency in the home
. Set up a warranty body to provide consumers with assurances about the work undertaken to provide 'whole house' energy efficiency upgrades
. Require local authorities to have credible and up to date plans for renewable heat in their area
. Ensure all government procurement embraces sustainable and responsible sourcing

Although the new government has to set about reducing the public sector deficit, maintaining capital investment in the built environment is crucial to securing the economic recovery, helping business become more competitive, meeting the targets for carbon reduction and improving the quality of life of people in this country. As recent independent research has shown, each £1.00 invested in construction generates £2.84 of economic activity and the employment this generates will help bring many of those who have lost their jobs in the recession back into work.

WE THEREFORE WANT TO SEE THE NEW GOVERNMENT:

. Ensure that the net public sector capital investment does not fall below 2.25% of GDP
. Set clear output targets for what public sector capital investment aims to deliver and monitor the progress that is made towards achieving this
. Continue to support initiatives to assist the private housing market until the recovery is more secure
. Increase the number of social homes being built to 50,000 per year by 2012
. Develop a long term Infrastructure Plan supported by funding through an Infrastructure Bank
. Commit to the delivery of Crossrail with stated completion time
. Maintain levels of investment in the road network to ensure levels of road congestion do not increase
. Undertake a detailed assessment of the costs and benefits of a reduction in the level of VAT on domestic repair and maintenance

The private sector has a vital role to play in leading the country out of recession and there is a widespread recognition that this has to be based around a more balanced economy, with sectors such as manufacturing and construction playing a more significant role than in the recent past. To assist in this, construction product manufacturers and suppliers want to see the government provide a framework that helps facilitate increased productivity, innovation, and investment and does not place companies operating in this country at a competitive disadvantage.

IN PARTICULAR WE WANT TO SEE THE NEW GOVERNMENT:

. Establish a clear long term and realistic strategy for maintaining a reliable supply of energy at prices that do not leave companies at a competitive disadvantage
. Simplify the regulatory and tax burden imposed on companies involved in overlapping European and domestic initiatives aimed at reducing energy consumption
. Undertake an urgent review of the impact of the planning system on business investment and introduce measures that will speed up the time in which applications are decided
. Ensure planning applications for major infrastructure projects are handled in a timely manner
. Reduce the burden of regulation on business by adopting a lighter touch for companies that consistently perform to the standards required
. Work with the major financial institutions to ensure sufficient finance is available for viable business investment, particularly SMEs
. Simplify the existing distribution of construction responsibilities across Whitehall
. Resist imposing further taxes on business unless there are equivalent cuts in business taxes elsewhere

The construction products industry recognises the important role it has to play in delivering better value construction projects through the innovative products and solutions it develops, and the relationships companies establish with other parts of the supply chain.

THE ROLE THAT THE NEW GOVERNMENT CAN PLAY IN THIS IS TO:

. Ensure there is an increasing number of university graduates in engineering disciplines
. Implement a Fair Payment Charter across all public sector projects
. Improve the mechanisms for ensuring compliance with building regulations
. Maintain a broad-based system of R&D tax credits
. Work with industry on developing formal Publicly Available Specifications for procurement that government departments have to work to

Download Construction Products Association: Key priorities for the new government

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