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Impact editor Gavin Pearson interviews the shadow minister for industry Ian Lucas.
Your brief as shadow industry minister incorporates the construction sector. What role do you see for construction in spurring the economic recovery?
"Construction is a vital cog in spurring the economic recovery. Investment in construction creates domestic demand and domestic jobs. A significant drop in construction demand means that if we have any recovery at all, it is the wrong kind.
"Construction involves large companies and small companies, partnerships and sole traders. The government suggests that SMEs should be leading us out of recession but construction, a sector where SMEs are so important, is lagging behind. The government is saying the right things but its words are not matched by action."
What role do you see for SMEs in supporting recovery, and how would you look to support them?
"The government is making the right noises on SMEs – there is an understanding that smaller businesses, not just in construction but more widely, have a role in building growth.
"First, we must recognise the position of SMEs in construction is urgent.
"Second, I think it is vital that the promises that we are hearing from government about procurement – that one quarter of government procurement will come from SMEs – are carried through. We are hearing much from government about the savings it is making through the Green review on procurement – but the opportunities it could create for small firms are – one year on – still mostly at the action plan stage.
"There has been some good work - the Contracts Finder website is a good idea. A similar scheme has been run by the Welsh Government for some time. However, for the UK version, I am not sure enough has been done to make business aware of its existence.
"SMEs should not be afraid to speak out about these problems, either – I was always keen, in government, to hear of what was happening on the ground."
There has been a growing recognition of the role of infrastructure in spurring wider economic growth. Where do you see the big opportunities to harness that?
"It stands to reason that developing our infrastructure is vital to spurring growth. I attended the opening of a construction project this morning to improve the road links to Wrexham’s industrial estate – funded by the Labour Welsh Government. That improvement in the road infrastructure has long been recognised as a key component of the estate’s future – and it provides jobs now to Birse, the private sector company carrying out the work, as well as their supply chain companies.
"However, infrastructure is not just transport. Improved telecommunications to enable superfast broadband is a crucial investment that has to be made. The government says it agrees but the private sector investors who are needed to build that infrastructure say that the present investment framework is wrong. This will stop investment and jobs in what, under Labour, was one of our most competitive sectors.
"Understanding tomorrow’s needs – not just today’s - will be key in building sustainable growth. Projects which anticipate future needs, rather than simply solving current problems, will become increasingly important."
What do you think can be done to solve the funding problems faced by the construction sector, in light of the credit squeeze and reductions in public spending?
"Firstly, the government needs to ensure that the promises it is making on bank lending – the warm words we hear from the Treasury that banks will ensure finance for business – are carried through in reality.
"Project Merlin launched earlier in the year with much fanfare about the lending it would encourage to SMEs – though there was scepticism even as it launched. In the months since, there has not been a significant upturn in lending to business – indeed, the reverse is the case. It is key the Treasury does not allow Project Merlin to simply be a PR gimmick and that it pushes banks to stick to the promises they made at its inception.
"Government must also work to facilitate confidence in the domestic construction sector – translating demand into build. We all know that young people want homes – but confusion in finance and in planning is stopping progress. And there needs to be understanding of the urgency of the position. We need to argue the case for more homes and work with the industry to eliminate the barriers to building them."
What do you want to see from Industry as it looks to recover in the years ahead?
"I want to see imagination and novelty – in people and in processes. There are opportunities for the construction sector in harnessing technology - for instance, the coupling of the renewable sector with new build construction on homes – which I think have the potential for huge development. I think that pushing these sustainable developments forward as an industry – and setting an example for the government to follow – will be vital in the coming years.
"I am not sure that the government have as clear a picture of the way forward as the industry does – so experience from the sector really should have a role in driving the government’s thinking.
"I want a commitment to jobs, training and apprenticeships across the industry. My constituents want to know where jobs for young people are going to come from and the construction industry needs to shout out how big a player it can be."
What message do you have for our industry, and what priorities do you have for the coming year and beyond?
"Construction should punch its weight. It is a key manufacturing industry which creates jobs in every constituency in the country. It can be the driver of growth in jobs for young people and in addressing the great demand for homes which we all know is there. We need to work together to put the construction jigsaw together and exploit the challenge that low carbon build offers to build new homes, to retrofit old homes and to train our people in the new skills that the new, green world demands."
"As shadow minister, one of the key things for me is building on the work we have already been doing in our policy reviews. It’s vital that we, as an opposition, not only hold the government to account but also do so in a way which understands the needs of industry."
How best can industry engage with you and Her Majesty’s Opposition?
"There is a huge opportunity for industry to get involved at the moment – with the party carrying out policy reviews, now is the time to get involved and let us know your opinions. We are engaging with industry figures – but if anyone has an opinion on what we should be doing – or, indeed, what the government should not be – then I am very open to suggestions.
"I am especially keen that we hear from SMEs too –as their voices – by nature of their size – need a keener ear. Please do get in touch and let me know your thoughts.
"All construction businesses should contact their local MPs too – all of you have them and most of them do not understand sufficiently how important the construction sector is."
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