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[August 2000]
Chancellor leaves construction industry upbeat
The construction industry stands to be a major beneficiary from the Chancellor's latest Comprehensive Spending Review. With the emphasis on increased capital investment rather than increased current expenditure, the Construction Products Association estimates that public capital investment in the industry will increase by up to £9 billion in the next 3 years.
Commenting on the Review, Michael Ankers, Chief Executive of the Construction Products Association said: "We have suffered from years of under-investment in the basic infrastructure of this country which is why we are currently at the bottom of the EU league table. The Government has finally acknowledged that capital investment is the key to long term economic prosperity and the decision that the focus of additional money now available should be on capital investment rather than current expenditure is particularly welcome.
"In its submission to the Chancellor, the Association argued that transport and housing were major priorities. We therefore welcome the announcement that by the end of the period of the Review annual capital investment in the transport infrastructure will be increased to over £6 billion a year. This will mean we can start to make significant improvements in public transport and provide much needed road improvement schemes - schemes needed both to alleviate congestion and improve the environment. We are also pleased to see that recent increases in housing capital investment are to be continued up to 2004.
"These significant resource commitments need, however, to be supported by clear output targets. Too often in the past the resources that have been made available have not fed through into projects on the ground because, for example, of planning delays, and the Government must see that this does not happen in the future.
"The Government also needs to recognise that if it is genuinely committed to reversing past levels of under-investment it will require a sustained commitment to these higher levels of spending over many years, not just for the duration of the Spending Review."
ENDS