Construction industry recommendations
The Minister said some recommendations from the Sectoral Development Committee’s report were already being implemented, including publication of the 1985–87 public capital expenditure outline and measures to stimulate private investment; further recommendations required consultation. Reynolds questioned whether the Budget’s VAT increases would harm the industry, while the Minister said Budget initiatives would benefit it. Question No. 24 was postponed.
asked the Minister for the Environment the steps he will take to implement the recommendations made in December 1984 of the Sectoral Consultative Committee on the construction industry.
Comment on this
The Sectoral Consultative Committee (SCC) were established under the aegis of the Sectoral Development Committee (SDC) to conduct a thorough evaluation of the construction industry. The results of this evaluation formed the basis of the report on the industry issued by the SDC in December 1984.
A number of the recommendations of the SDC/SCC are already in course of implementation. Other recommendations will require consultation with outside bodies and agencies. I propose to arrange for such consultation as soon as possible.
Comment on this
Could the Minister indicate to the House which recommendations are being implemented and which have been left in abeyance for further consultation?
Comment on this
The following measures recommended by the SDC/SCC have already been taken on by the Government. Firstly, an outline of public capital expenditure affecting the industry over the three years 1985 to 1987 — that has been published. The infrastructural component of the public capital programme is being increased significantly over the years under the national plan. A number of measures, aimed at stimulating increased private investment in the industry have been announced. They include the £5,000 grant to enable tenants of local authority houses to purchase private houses, the extension of joint venture housing and incentives for refurbishing of houses let in multiple occupation to be incorporated in the 1985 Finance Bill. I might say that the recommendations cover very wide areas, including planning, development, efficiency and value for money, labour training, technology, research and development, physical planning and development control as well as materials and exports on the black economy. Many of the recommendations will be considered by the Department, by me, by other Departments and by outside agencies, and especially, of course, the Department of Finance. My Department will co-ordinate the work of implementing the recommendations and will be writing to all the relevant Departments and small agencies shortly.
Comment on this
Would the Minister agree that new stimulus is needed for the construction industry arising out of the imposition of increased VAT rates yestersay, that the construction industry in the future will be even worse off as a result of yesterday's budget?
Comment on this
It would be more appropriate to make that point on the budget debate. Perhaps it has already been made.
Comment on this
I am sure the actions taken in yesterday's budget will stimulate the economy, bringing benefits to all industries, particularly the building industry, in respect of which particular initiatives were taken in the budget to ensure that that industry would not be hindered by measures taken in the budget.