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Allan Wilen - Construction Products Association
Question: What does your report reveal about the level of GDP invested in construction?
Allan Wilen: The report - Achieving Targets? Is government delivering? 2005 - reveals that whilst there have been improvements over the last couple of years, we’re still ranking behind the rest of Europe in terms of our investment as a proportion of the economy in the built environment.
We’re still averaging about seven per cent as opposed to the European average of 12 per cent. This means we’re still bottom of the league for investment in the built environment in Europe.
Question: So are ministers missing key targets?
Allan Wilen: Ministers have been struggling to meet their targets in a number of areas. While there has been progress in some areas, I think overall, too many targets are being missed.
Question: Why is this the case?
Allan Wilen: There are a number of factors involved. The pace of delivery needs to be improved and the mechanisms for that delivery need to be addressed.
Things aren’t moving forward quickly enough and the government needs to be more transparent about the progress they are making in a number of cases. Ministers also need to ensure that there is a sharing of knowledge among different government departments.
The public sector as a whole represents about 40 per cent of construction activity but this represents an awful lot of different clients such as local authorities and NHS Trusts for example.
There is a need for them to share experience and learn from each other. This way they can identify best practice.
Question: Is there too much red tape or too many layers of bureaucracy?
Allan Wilen: In some areas we’re concerned that bureaucracy is actually getting worse.
This is particularly the case in road investment for example. The government has announced that a number of schemes in the Highways Agency investment programme for the strategic road network are of regional, rather than national, significance.
This means they will have to be reviewed and prioritised at a regional level by bodies that in many cases are yet to be established, before then going on to the secretary of state for final approval.
Only then will schemes be allowed to start. So this is another level of review and discussion for schemes which have already been through multi-modal studies and planning inquiries. It’s an extra hurdle which is going to delay investment.
Question: So how does our system compare to those of other European countries?
Allan Wilen: While it is difficult to generalise, I think there is more of a commitment to take the decisions and drive them forward more quickly.
A good example of this is France, which is a country that has a major programme of investment in their built infrastructure.
One just needs to look at their high speed rail network and their motorway system to see the difference this makes.
In London the mayor has been keen to gain more powers to push through major projects quicker. Should this happen in other major cities and regions of the UK?
I think there is a need for greater co-ordination at a regional level, but because a lot of funding comes from central government, inevitably Whitehall and ministers are going to demand a say in the final decisions.
The Olympics is going to be a massive construction project over the next few years. Would you agree that your report makes grim reading for DCMS ministers who are gearing up to try and push this through?
I think there are some useful lessons for the Olympic Delivery Authority to learn.
The authority will need to have a very focused brief to make sure that from the outset they are working with all sections of construction industry including construction product manufacturers to ensure that they have an early input into the design process.
This should ensure that they get a project delivered efficiently and effectively in time for 2012.
Question: Is there sufficient capacity within the construction industry to cope with the Olympic project?
Allan Wilen: Yes, the Olympics represents about £2.5bn of work to take place over about a five year period.
With this in mind, it only represents about an extra 0.5 per cent in construction activity during that period. So while it is a big and exciting development – particularly for London and the South East – it will have a relatively modest impact on the construction industry as a whole.
The Olympics will also benefit from the earlier completion of other major infrastructure projects such as Wembley Stadium and the Channel Tunnel Rail Link at Stratford itself.
Question: You mentioned roads earlier – did your report find progress made in Britain’s railways?
Allan Wilen: There has been some disappointment here. There has been a lot of focus on upgrading and repairing the existing network – and Network Rail is working to annual targets for this and it is meeting with some success.
But amongst the long term targets set out in the Ten Year Transport Plan, there were proposals for 25 light rail schemes, Thameslink 2000 and Crossrail. Progress here is still very slow.
On the Crossrail scheme for example, this is currently before Parliament but it won’t be completed in time for the Olympics.
We now understand that the local Government finance review will delay the progress of Crossrail as well. So this is another classic example of external factors slowing the delivery of a major scheme which could really boost the capacity of the rail network, helping our economy and improving our quality of life.
A recent You Gov Poll undertaken for the Association showed that 49 per cent of the public believe that overcrowding on peak trains is still getting worse. Some 58 per cent believe that Britain needs a high speed train network
Question: What about school buildings? The government has long made this a key priority.
Allan Wilen: Our concern here is that the Buildings Schools for the Future programme, which aimed to bring all 3,700 secondary schools up to 21st century standards is making slow initial progress.
This programme, which was launched in April this year after being first announced two years ago, has yet to bring any projects to financial close. Many are out to tender or at the early stages of procurement, but there’s no action in terms of contracts being concluded.
Over the three years from 31 March 2005 they are planning to complete 380 schools. This is now looking doubtful as six months into this period no projects have yet been concluded.
Question: So what is your core message to government on this?
Allan Wilen: It’s important to note that the government has made progress in some areas. It looks like they’re back on target to achieve 100 new hospitals by 2010 – albeit including some smaller schemes than initially planned.
Our YouGov survey however showed that around 40 per cent of people still believe that the Government is not delivering promised improvements to hospitals.
There are therefore two key messages to ministers. First, they need to set robust targets and make sure there is effective monitoring in place so that they, and the public, can judge the progress which is being made. This will also allow industry to know what future capacity it should plan to provide, ensuring that government gets best value.
Second, government should look closely at the delivery mechanisms for its targets to make sure they are working effectively and that public investment is effectively translated into the delivery of real physical improvements and new buildings for our public services and infrastructure.
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