黑洞社区

New construction minister Michael Fallon has conceded that the government鈥檚 long-delayed review of PFI is a key issue for the industry and has assured the sector that the government will soon bring forward its 鈥榮on of PFI鈥� proposals.

Fallon was appointed to replace Mark Prisk as business minister within the Department for Business, Innovation and Skills as part of the government reshuffle last week, and was handed the construction brief as part of his business portfolio.

Previously Prisk had of the long-delayed review of PFI to the industry, despite it forming a key part of industry lobbying.

But Fallon told 黑洞社区 this week that he understood the urgency of bringing forward the government鈥檚 PFI review. 鈥淚 do think this is an important issue for the construction industry,鈥� he said.

He said the government鈥檚 review was aimed at ensuring PFI secured better long-term value for money for the taxpayer, 鈥渨hile making sure we retain the benefits that successful PFI can deliver鈥�.  

鈥淭his includes getting projects built to time and to budget, and creating the correct disciplines and incentives to manage risk effectively,鈥� he said.

Fallon鈥檚 comments came as chief secretary to the Treasury Danny Alexander that the PFI review would be announced this 鈥渁utumn鈥�.

the government鈥檚 PFI review, which was initially expected earlier this year, and then before the summer recess, had been pushed back until autumn.

Alexander said the Treasury had had a 鈥渞eally high level of engagement from industry with responses to the consultation, and over 100 further stakeholder discussions鈥�.

鈥淲e鈥檙e now considering those responses and will be setting out our conclusions this autumn,鈥� he said.

Fallon said his initial priority as construction minister would be to 鈥渓isten to industry and understand its main priorities鈥�, but noted the importance of the continuing with the Green Construction Board and the delivering the government鈥檚 construction strategy.

He added: 鈥淕overnment has two central priorities - reducing the deficit and promoting economic growth. I am very keen to work with the industry to make this happen.鈥�

鈥淭imes are tough for the industry; the latest ONS statistics make that clear. The central challenge the industry faces is how to cope with the current level of demand in ways which do not needlessly compromise its ability grow in the future. It is a serious challenge and one I do not underestimate.

鈥淎s well as last week鈥檚 announcements on infrastructure and housing, there are other ways the Government can offer support to businesses in times of constrained demand. That is why I want to be more serious about cutting red tape without compromising on safety. It reduces the costs of being in business and ensures that effort can be focussed on what really matters.鈥�

Senior figures in the sector said they would reserve judgement on Fallon鈥檚 appointment until they had met with the new minister, noting that construction is just one of Fallon鈥檚 many business ministerial responsibilities.

鈥淗e is something of an unknown quantity and we don鈥檛 know yet to what extent he will be focused on construction,鈥� one senior figure said.

Simon Storer, communications director at the Construction Products Association, said it was some cause for concern that Fallon鈥檚 title no longer specified his responsibility for construction but rather just his responsibility for 鈥渂usiness鈥�.

He said he hoped Fallon recognised the importance of construction to driving the government鈥檚 key priority of economic growth. 鈥淭he danger with all ministers in business departments is that they celebrate car manufacturers and whizzy things,鈥� he said.

鈥淏ut actually construction is manufactured in the UK, by the UK for the benefit of the UK.鈥�

Others said the appointment of Paul Deighton, chief executive of the London Organising Committee of the Olympic and Paralympic Games, to a ministerial role at the Treasury, where he will head up the government鈥檚 infrastructure push, would likely be more significant for the industry.

鈥淧ut it this way: Treasury is the more important player and we will be beating a path to Paul鈥檚 door first,鈥� said one industry figure.

But Alasdair Reisner, director of external affairs at the Civil Engineering Contractors Association, said: 鈥淔allon seems to be well regarded within the party, which should mean that if he wants to do something he won鈥檛 get too significant an amount of buffeting from within government.鈥�