HC Deb 29 November 2001 vol 375 cc1085-7
1. Mr. Desmond Swayne (New Forest, West)

If she will make a statement on the prospects for the construction industry. [16469]

The Minister for Industry and Energy (Mr. Brian Wilson)

The prospects for the United Kingdom construction industry are good despite the present economic uncertainties. The industry has enjoyed an extended period of growth and most industry experts forecast that this will continue. The industry continues to benefit from the rethinking construction process initiated by Sir John Egan.

Mr. Swayne

I thank the Minister for that answer. He will be aware of the acute shortage of skilled operators for plant. What estimate has he made of the impact of the European physical agents vibration directive and, in particular, the European Parliament's amendment to the common position? What effect will that have on the industry, and what action is he going to take to defend the common position?

Mr. Wilson

I think that the hon. Gentleman is referring to the use of vibratory tools and vehicles. Our position is not to support the amendment, which could in some cases result in only two or three hours' use of such tools and vehicles in a day. On the other hand, we must get a sense of balance on the construction industry. It does not have a good record on health and safety. He lifts his eyes heavenwards, but he should look at the statistics because many people are killed and injured in that industry, which is why Sir John Egan and I have made health and safety one of our top priorities, working with the industry to address that record. We should not lightly dismiss health and safety measures.

As part of my responsibilities, I see the effect of vibration white finger on people who have been exposed to the uncontrolled use of vibratory tools. Let us not sneer at such matters. We should get a sense of balance. In this case, we believe that the balance has gone too far the other way, and we will work to redress that position.

Mr. Michael Foster (Worcester)

The brand new hospital project in Worcester is nearing completion. At St. Barnabas primary school in my constituency four dilapidated mobile units are being replaced by four permanent classrooms. I understand that such projects are taking place up and down the land. What assessment has my hon. Friend received of the impact that such work will have on the construction industry?

Mr. Wilson

My hon. Friend is right. Record levels of investment are being made in health and education, some of which is going into construction projects up and down the country. I do not know the details of the specific project that he mentions, but a huge instrument in supporting that programme is the use of public-private partnerships. PPPs are justified because they offer value for money, make it possible to do so much more and, at the same time, generate tremendous activity in the construction industry.

Having said that, some 40 per cent. of procurement in the construction industry comes from the public sector. We are working to ensure that that is done better and more effectively. If we can make sure that it is carried out on a more rational basis, we could have even more building projects, like the one that my hon. Friend mentions, for the amounts that are being invested. We have to do all that better and keep the levels of investment going. One of the biggest beneficiaries of that will be the construction industry and those who are employed in it.

Bob Spink (Castle Point)

Does the Minister accept the great value that self-employed construction workers add to our economy? If so, will he replace the IR35 legislation with something that really tries to tackle tax abuses in the system without unfairly impeding genuine people working in themn construction industry?

Mr. Wilson

On this side of the House we believe in fairness in taxation and do not support devices to get around that. Of course there is a role for genuinely self-employed people in the construction industry, and many are in that position. However, we are much more sceptical about the role of companies that treat people as self-employed, relieve themselves of responsibilities towards those individuals and therefore use self-employment as a means of cutting cost. That is not fairness in taxation. It is also not fairness in employment.

John Cryer (Hornchurch)

Is my hon. Friend aware of the Harvey report, which suggests that there are 300,000 to 400,000 bogus self-employed workers in the construction industry? Is he also aware that that has led to a deep fragmentation of the industry? There has been an undercutting of health and safety measures, and 105 people died on construction sites last year. That might not matter very much to the Opposition, but it certainly matters to us. Will my hon. Friend undertake to review the construction industry with our hon. Friends in the Treasury, and consider bogus self-employment in particular?

Mr. Wilson

My hon. Friend makes two excellent points. Self-employment has a role; bogus self-employment does not, and it is far too deeply embedded in the practices of the construction industry. It is undoubtedly one of the factors that leads to the appalling safety record which, as he says, is so lightly treated by the Opposition. I am pleased that the safety issue is being taken seriously in the rethinking construction process, under the leadership of Sir John Egan.

One of the major priorities of the rethinking production programme is to treat people with respect in the construction industry. If projects can be better planned and implemented, if more work can be done off-site and if we have proper employment practices in the industry, undoubtedly we shall reduce the disgraceful number of deaths that my hon. Friend mentioned. The process must be systematic and we must work with the industry. That is why the rethinking construction programme is so important.

Mr. Robert Key (Salisbury)

No one is sneering at industrial injury or vibration injury that is caused by anything from jack hammers to sewing machines. It was a Conservative Government who saw the beginning of a continuing process in 1994. The Government have brought us to a ridiculous position, where farms, factories, articulated lorries and forestry are involved. The construction industry will be ruined, and life will be made impossible for small family farmers. We expect the Minister of State to use the six-week conciliation period to go to Europe to sort out the problem, and stop the nonsense that is so damaging. It gives the European Union a bad name.

Mr. Wilson

As it is a sworn role of the Conservative party in its current manifestation to give the European Union a bad name, whether fairly or unfairly, I am not surprised by the hon. Gentleman's comments. I absolve him. I am sure that he takes these issues seriously. However, I can assure him that the response of Members sitting behind him does no credit to his party.

We take the issue seriously in terms of its impact on business. We also take health and safety issues seriously. I shall be pleased to work with the hon. Gentleman and those of his colleagues who share our concerns. We can surely cut across parties by addressing the fact that there are about 10 deaths a month in the construction industry. The industry also manages to kill one pedestrian every month. Surely we can do better than that, and we can do it by working together on a non-partisan basis.