Building for Success
Introduction
Wales is home to over 100,000 construction workers. The Welsh construction industry accounts for nearly £4 billion of economic activity each year. Construction and the built environment matter to Wales, which is why FMB Wales is presenting these recommendations to the National Assembly and the Welsh Assembly Government. The aim of this policy programme is to enable politicians to focus on what really matters to employers.
FMB Wales Director, Richard Jenkins at the Building for Success launch
At the end of 2010, the SME construction sector was facing a fourth year of decline. Over the next four years, supporting growth in the construction industry must be a priority for decision makers in Wales. Construction is at the heart of so much of what Wales hopes to achieve in the years ahead including more homes, improved transport and better schools and hospitals. The construction industry is well placed to lead a home-grown recovery. For every £1 spent on a construction project in Wales, the economy benefits overall by £1.70. By opening up public procurement to smaller businesses the Welsh economy will benefit further still from the local training and employment opportunities created.
FMB Wales has identified three key challenges for the next Welsh Assembly.
Anthony Thomas, FMB Wales President; Jane Hutt AM, Joyce Watson AM and Richard Jenkins, FMB Wales Director
First, building a greener Wales: sustainable growth must be tied to our commitment to reduce carbon emissions. The devolution of building regulations creates an opportunity for Wales to lead the sustainable housing agenda, and much more must be done to kick-start an energy efficiency revolution in Wales’s existing building stock.
Secondly, developing skills and training: increasing the number of construction apprentices and encouraging business support and management training for SMEs will equip employers with the skills needed to deliver low carbon policy objectives and stay competitive.
Thirdly, creating a new business environment: steps must be taken to level the playing field so that construction SMEs are not unfairly penalised and are able to thrive. To this extent, a reform of the public procurement process must be prioritised in order improve the opportunities for Welsh construction companies.
Jane Hutt AM speaking at the Building for Success Wales Launch
FMB Wales Policy Recommendations
Building a Greener Wales
1. Introduce low interest rate loans and other financial incentives to stimulate significant additional spending on
energy efficiency in Wales’s housing stock.
2. Maintain investment in the Arbed programme to reduce greenhouse gas emissions, reduce fuel poverty and
stimulate the local construction economy.
3. Ensure any changes to low carbon building regulations are technically and financilally deliverable within the
context of overall regulatory burden.
4. Support self-certification and accreditation schemes for competent builders so that those operating in the
informal economy are not able to undermine low-carbon refurbishment programmes.
5. Replace Site Waste Management Plans (SWMPs) with Project Waste Management Plans to ensure a
collaborative approach and common ownership of construction project waste management.
6. Increase the number of recycling sites available for construction waste.
7. Make local authority recycling sites available for minor quantities of commercial waste.
8. Introduce incentives to encourage the reuse of construction materials.
Rhodri Glyn Thomas AM speaking at the FMB Building for Success Wales launch
Developing Skills and Training
9. Link training to public sector procurement to increase the number of construction apprentices and ensure
public money goes to employers committed to training the future workforce.
10. Continue funding for apprenticeship programmes and work-based learning so that new entrants can develop
the skills that employers need.
11. Support more management, leadership and business training and qualification programmes to help Welsh
construction SMEs stay competitive.
12. Maintain funding for initiatives such as the Redundancy Action Scheme and ProAct so valuable skills are not
lost to the industry as a result of the economic slowdown.
Joyce Watson AM speaking at the Building for Success Wales launch
Creating a New Business Environment
13. Provide targeted support for the construction sector to help ensure economic renewal in Wales, and increase
the value of construction spend in Wales by developing procurement solutions that are innovative and fair
to SMEs.
14. Limit the use of ‘bundling’ contracts in procurement so that the value of public contracts does not
unnecessarily exceed the perceived remit of Wales’s local SME contractors.
15. Enforce the uptake of the standardised Supplier Qualification Information Database (SQuID) by all public
sector buyers so that Wales’s local SME contractors have a fair chance of benefiting directly from public
spending.
16. Commit to making up the shortfall of homes in Wales which stands at almost 40,000 dwellings.
17. Develop public-private partnerships that share both the risks and benefits of housing delivery.
18. Pursue changes to Householder Permitted Development Rights to give householders greater freedom to
extend their properties without needing to apply for planning permission and reduce the burden on Local
Planning Authorities.
19. Enable local authorities to raise Council Tax on empty properties in danger of falling into dilapidation, and ring
fence the money to invest in bringing properties back into use.
20. Increase pressure on the UK Government to cut the rate of VAT on building repairs and maintenance to 5%
in order to boost Welsh construction jobs and reduce the number of cowboy builders.
