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The FMB welcomed the appointment of Nigel Griffiths as Construction Minister and highlighted three policy areas where rapid progress will be key:- an SME voice on the Strategic Forum; a reduction to 5% in the rate of VAT on domestic repair, maintenance and improvement work; and an effective scheme to protect consumers and rid the industry of so-called cowboy builders.
Said FMB President Geoff Snow:
"Construction is a fundamental part of the British economy and the FMB looks forward to working with Mr. Griffiths to tackle the challenges that lie ahead."
SMEs
In a letter to the Minister, the FMB confirmed its support for the principles behind Constructing Excellence and its belief that, done properly, modern procurement and partnering techniques can lead to significant reductions in cost and improvements in sustainability. However, the FMB voiced concern that SMEs are currently disenfranchised from the process.
Said Geoff Snow:
"Given that over 95% of construction firms are SMEs, we cannot understand why there is no SME voice on the Strategic Forum. As it stands, there is a serious risk that Construction excellence will be seen as a large firm exercise and that SMEs will not have the opportunity to take part. Ordinary consumers are therefore unlikely to see any direct benefits."
VAT
The FMB also took the opportunity to highlight the case for a reduction to 5% in the rate of VAT on domestic repair, maintenance and improvement work, which would both sideline rogue traders and protect consumers, as well as supporting other Government policies including affordable homes, improving housing quality and reducing demand for greenfield sites.
Commented Mr Snow:
"The DTI has been a consistent supporter of a reduction in VAT, and we look forward to this support continuing. Forthcoming European negotiations on VAT levels will be an opportunity for the Government to show its commitment to this policy."
Consumer Protection
In excess of 100,000 complaints to the OFT are recorded each year. The FMB shares the Government's concern with this situation, working together on the Quality Mark scheme, for which the FMB is a member of the Shadow Ownership Body.
However, as Geoff Snow points out:
"Quality Mark has not attracted the number has builders that it needs to be sustainable in the long term."
The FMB has been working with officials on ideas to improve the attractiveness of the scheme to builders and is now looking for an opportunity to discuss with the new minister how to take this important agenda forwards.
Concluding his remarks, Geoff Snow said:
"The construction industry occupies a vital part of the national economy. It is at a turning point where it could move forwards into a new era of partnership, cooperation and consumer protection, or veer back to the adversarial relations and cowboy culture of old. We look forward to working with the new minister to push construction forwards and to make it a truly twenty-first century industry."
First posted: 17 June 2003. Last modified: 18 June 2003.
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