Member News
By Tom Foulkes, ICE - 31st August 2011
The value of infrastructure investment to our long-term economic prospects should not be underestimated, says Tom Foulkes, director general of the Institution of Civil Engineers.
The United Kingdom has historically suffered from under-investment and lack of planning for the provision of its national economic infrastructure. In a report last year the Treasury attributed this failure to an approach which, for several decades, has been "timid, uncoordinated, incremental and wasteful in… supporting sustainable growth in the economy".
Against this background it is unsurprising to find that the World Economic Forum now ranks the UK only 33rd for its overall quality of infrastructure, behind competitors such as Japan (17th), Germany (6th), and France (5th). Reinforcing this view, ICE – in its report State of the Nation: Infrastructure 2010 – found serious cause for concern in the UK's energy, transport and waste infrastructure networks. In particular we found that the resilience of these vital networks to events such as flooding has declined in recent years as interdependency between these systems continues to increase. These findings should give economists cause for concern.
On the simplest basis, if our infrastructure networks continue to degrade, then the harder it will be for British business to compete internationally. Previously government support for infrastructure delivery was all-too-often seen through the prism of providing a short-term stimulus to a struggling construction industry and related sectors.
But the full value of a new road or improved railway line isn't in the immediate number of new jobs the project demands, but in the advantage it provides to British industry to deliver goods and services more quickly and efficiently over the years and decades ahead.
Since its formation the coalition government has made a number of announcements which show that the importance of infrastructure to sustainable growth has been recognised.
With the publication of the Plan for Growth in March 2012, the government identified the need to renew our national infrastructure as one of its priorities. However, with over £200bn required for this task over the next five years, we are now entering a critical time where these government pledges must be matched with action.
ICE believes the following action is required to deliver the necessary strategic vision, private investment and a fit-for-purpose planning approval system:
Throughout recess, ePolitix.com will be focusing on a different policy theme each week. This week we are featuring articles with a focus on business and the economy.
Dods Parliamentary Communications Ltd
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