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ACE has expressed its concerns to the Bank of England that the promisedfiscal stimulus is not taking effect.
In a meeting on 30 March 2009 with Pauline Finlay, Bank of England deputyagent for the West Midlands and Oxfordshire, ACE said that urgent action wasrequired by the Bank of England and the banking sector in general to break thelogjam that is having serious repercussions for Britain’s constructionindustry.
ACE’s membership and regions director Ian Parker said that members werefacing “certain pressure amid uncertain times” as they were forced to takeshort-term measures to avoid cutting more jobs.
“For many member firms the start of 2009 has been about fire-fighting,”Parker said. “They have reached a point where a more constructive flow of fundsis desperately needed. Such funds are crucial, not just for the largeheadline-making projects like Crossrail and the M25 widening programme, but alsofor the hundreds of SME firms who are practically living on a hand to mouthbasis. A concerted and considered programme of funding is vital if thegovernment is going to show trust in the consultancy and engineering sector tocontribute towards the recovery of the economy, which we are in no doubt that itcan,” he said.
Monday’s meeting brought together ACE representatives from the regions andsector groups, who informed the Bank that they have yet to see any real results.“There is a definite logjam in the construction industry at present and theeffects are being felt throughout,” said Michael Hall, ACE’s policy manager.
“With the ongoing lack of lending to the construction sector and the banksstill suffering it’s evident that clear direction is needed, but also that hereis a golden opportunity to get Britain building again. There is little sign ofthe promised funding filtering down to ground level; action is needed soonerrather than later,” said Hall.
-ENDS-
Further information from ACE communications and public affairsdirector Andy Walker on 020 7227 1889, 07947 558654 (mobile) or emailawalker@acenet.co.uk
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