CONSTRUCTION EMPLOYERS FEDERATION THE VOICE OF THE INDUSTRY
When looking to the GB and RoI markets, three main reasons were given as to why they are more attractive for contractors: • Increased profit margins • Company growth in new markets • More secure pipeline Looking to the next six months, the key challenges identified are: • Insufficient public sector budgets • Limited public sector procurement pipeline • Access to skilled labour • Political uncertainty as a result of elections across the UK and Ireland Mark Spence, Chief Executive of the Construction Employers Federation, said, “While a number of the key challenges of recent years such as unprecedented inflation and materials shortages have undoubtedly abated, the principal issue looking ahead is the lack of finance available to the Northern Ireland Executive and, consequently, an insufficient pipeline of public works. “The return of the Executive has led to a rise in industry confidence – but that confidence is only sustainable when it is clear that their return equates to a significant uplift in the volume of work that is forecast. “With the current year seeing the Executive’s capital budget at the same level in cash terms as 2007/08, it is the industry’s clear call that an incoming UK Government immediately undertakes to work with the Executive to grow this year’s funding envelope. “This is specifically in the context of huge forecast reductions in the number of new social housing units our housing associations can take forward and the significant underfunding of NI Water’s capital budget. There must also be speedy clarity brought to future years’ funding through a UK Government-led Comprehensive Spending Review. “Without this, we risk drastically exacerbating existing fundamental problems – most notably our housing crisis which is currently seeing some 19,000 homes that could otherwise be built being held up by constraints in our wastewater capacity. “It is also clear from these results that the next UK Government must work with the Executive on reforms to the existing approach to the Apprenticeship Levy. “Either maintaining the Levy as is but ensuring that money raised from NI companies is spent on apprenticeships/ training in NI - or devolving the Levy to the Assembly and enabling the NI Executive to craft its own approach to using the funds for apprenticeships/training - carry equal weight among our members regarding the future approach. It is something, given the sector’s skills shortage, that we would encourage focus on.”
L-R: Gordon Best, Neeta Cubitt, Eddie Weir, Finance Minister Caoimhe Archibald, Ciaran Fox, Leo Bagnall and Mark Spence.
Representatives from the Northern Ireland Construction Group (NICG), including the CEF, met with Finance Minister Caoimhe Archibald in the first week of August to discuss a range of issues of interest to the sector. The discussion focused around three key themes: • NI’s capital budget and investment plans over the next 10 years • The forthcoming implementation of the 2023 Procurement Act • Building Regulations for newbuild housing On the matter of capital funding, it is clear that significant challenges remain as we look towards the NI Executive’s capital budget for the coming years. This led CEF CEO Mark Spence to ask the Minister whether additional means to permit the growth of the capital budget are kept under active review. The Minister welcomed NICG’s proposal to submit a paper to the Department/SIB in due course. Allied to this, it is likely that the Executive’s draft Programme for Government and draft Investment Strategy will be published for consultation in the coming weeks. October 28 will see commencement of the implementation of the 2023 Procurement Act. Areas of discussion with the Minister focused on the proposed new central digital system for suppliers and the future of Constructionline. More information on these issues will be communicated to members during early autumn. Finally, on building regulations for newbuild housing, it was confirmed that the next uplift is, at earliest, to happen next year with a further move on the enhanced electrification of heat before the end of the decade. Northern Ireland Construction Group meets with Finance Minister
For more information on the Construction Employers Federation, T: +44 (0)28 9087 7143 - E: mail@cefni.co.uk Visit: www.cefni.co.uk
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