The Building Industry (Hansard, 9 February 1995)

§ Lord Dormand of Easington
My Lords, in the absence of my noble friend Lord Dean of Beswick, and at his request, I beg leave to ask the Question standing in his name on the Order Paper.
The Question was as follows:
What discussions they have had with representatives of the building industry about current trends in that industry.

§ The Minister of State, Department of the Environment (Viscount Ullswater)
My Lords, Ministers and officials from the Department of the Environment regularly meet representatives of the construction industry to discuss topical issues. In addition, a joint working group comprising officials and 307 representatives of the main trade organisations meets to produce a twice-yearly report entitled The State of the Construction Industry. Copies of the latest issue, which was published on 7th February, have been placed in the Library.

§ Lord Dormand of Easington
My Lords, will the Minister comment on the Latham Report which, from the news release, appears to be or could be of some significance, not least because Sir Michael Latham is highly respected in both Houses?

§ Viscount Ullswater
Yes, my Lords. Coming out of the Latham review, which was set up jointly between the industry and the Government, Sir Michael reported in Constructing the Team. The Government and the industry have agreed to set up a construction industry board to oversee the continuing work of the working groups which were set up in the wake of the review. The board will also channel comments by industry and clients on any subsequent legislation which may be required.

§ Lord Williams of Elvel
My Lords, we have seen the news release to which the noble Viscount referred and which sets up the construction industry board. Can the Minister tell the House where is the urgency in it? Sir Michael Latham drew attention to the urgency of reducing the cost of construction projects by 30 per cent. by the year 2000. We have no promise of legislation in the review, unless the noble Viscount can tell me differently. As I understand it, all we have is a proposal that Mr. Gummer himself will be president of the board and will take the chair at least twice a year. Is that a true sense of urgency?

§ Viscount Ullswater
My Lords, the Review Implementation Forum which followed the Latham review of midsummer 1994 had a six-month period in which it set up a number of working groups. One of them has already reported. As the noble Lord said, there is a target of 30 per cent. by the year 2000. We felt that the best way of supervising the remaining work—and there is much to be done on changing the nature of the industry to stop it being so adversarial—is that it needs to be overseen by such a board. That is the first time that the construction industry has come together in one single identity in order to tackle the important tasks that it has and to try to deliver the target.

§ Lord Ezra
My Lords, reverting to the current trends in the building industry, is the Minister aware of the most recent report of the National Council of Building Material Producers? It reports a recent deterioration in order volumes and business confidence as continuing in the first months of this year, pointing to a sluggish performance. Is that not disturbing? How will it be put right?

§ Viscount Ullswater
My Lords, there is no doubt that the recovery is patchy in the construction industry. However, output began to increase last year after three-and-a-half years of decline. New orders are increasing and the growth is expected to continue. There is sustained construction growth at home and British 308 firms are also doing well abroad. However, it is a large industry with various facets to it. One or two of the areas are perhaps not doing so well as others.

§ Lord Dormand of Easington
My Lords, is the Minister aware that the information he has given is rather thin? It is to be hoped that the House will have more information before too long. In particular, will he say whether there will be trade union representation on the new body which has been set up? Further, will the Government not lose sight of the great importance of the building industry to employment? It affects employment in a number of ways, as the Minister knows. That is the main reason why, as my noble friend said, there is considerable urgency about action on it.

§ Viscount Ullswater
Yes, my Lords, but it should not be considered by the House, or the industry, that the target set by the Latham review is easy to achieve. There is no quick fix, and there is a need to change the whole culture of the industry. There may be requirements for legislation, but in order to ensure that the industry fully backs the legislation we need to consider it carefully. Of course, I am extremely worried about the level of unemployment in the construction industry. I am glad to say that over the past 12 months it fell remarkably and was less than in the previous three years.

§ Lord Dormand of Easington
My Lords, I apologise for rising once more but will the Minister answer my question about trade union representation on the new organisation?

§ Viscount Ullswater
My Lords, at the moment the representation is from a number of the industry's bodies. I am not aware of the trade union representation on those bodies.