Executive opinion Driving forwards
We may be living in uncertain times, but there are ways
government could help boost essential business investment, suggests ECA group chief executive offi cer Steve Bratt
W
hat is to become of the economy? Construction output has gone up, then down, and then back up again. So what impact will the VAT increase have? And
what about interest rates, public sector cuts, oil prices and – closer to home – copper prices? I thought a quick look in the Financial Times or The Times might help, or even a fuller read of The Economist, but clearly, we are going to be living with uncertainty for some time to come. But what does all this uncertainty mean to businesses
in our sector? Well, one unwelcome consequence of uncertainty is a reduction in investment – from clients, of course, which results in less work, but also within businesses themselves, even those that do have work. We have heard that SMEs are going to
lead us out of the recession – at least, those with the courage to innovate, we’re told. It follows that these innovators are businesses that are able to cope better with uncertainty and are less constrained by risk. But that’s not enough – we need to encourage more businesses to invest, and quickly. Take the carbon reduction agenda, for example. The work needed to hit the 2020 targets is immense. To succeed, we need much more than just a few early adopters and everyone else waiting to see how they get on before joining in – we need all of the late adopters and potential laggards to come forward quickly. Therefore, the ECA has been calling on government to
demonstrate more certainty and security with their initiatives to drive the carbon reduction agenda forward. We need clear and positive messages that clarify government’s intentions in this area, and which demonstrate to businesses that investment in the skills and resources required to compete in these areas will be worthwhile.
Long-term vision This may all sound very downbeat. However, on the positive side, the UK has set its targets in legislative form – and with the concerns about energy prices and security, energy users will inevitably be looking to reduce consumption and diversify supply sources. It is the ECA’s view that this opportunity is here for the long term. So what about skills? Will anyone be able to do this work? Will we see an army of ‘green cowboys’? Let’s hope not!
About the author
Steve Bratt Steve Bratt was appointed group chief executive offi cer of the ECA in October 2010. He joined the ECA as chief operating offi cer in 2007, and became deputy CEO in February 2010.
The ECA has been encouraging government to ensure that whoever does this work is competent. Recent experience in Australia supports this; government funding was provided but standards weren’t what they should have been, leading to a high number of fi res and some fatalities. The message to government is that, as initiatives such as the Green Deal are rolled out, high standards and skilled people are critical. What about the commercial attractiveness of these
The ECA has been calling on
government to demonstrate more certainty and security with the
initiatives? Government-funded initiatives are often attractive, as there is payment certainty – sometimes even in advance! On this positive payment theme, it is worth mentioning that, following their commitment to pay by no longer than 23 days after the due date, central government departments are also embracing ‘project bank accounts’ (PBAs), which not only reduce overall project costs, but also increase payment certainty. We will be monitoring this to make sure it is implemented. What else do businesses need to
initiatives they have introduced to drive the carbon reduction agenda
convince them to make the most of these opportunities? Well, funding no doubt, and it can only be hoped that lending will increase in availability and affordability at some point soon. However, we don’t have enough space here to enter into that debate right now.
What is worthy of debate, though, is employment
legislation. With many businesses recently having been through a process of downsizing, they are bound to approach the matter of employing people again with caution. Therefore, David Cameron’s recently launched Employer’s Charter, together with the accompanying review of employment law – which aims to reduce the risks involved in fi ring employees in order to increase the likelihood of hiring them – is very welcome. We will be working with the Confederation of British Industry (CBI) and others to monitor its progress. What else will help? High on the list of many ECA members would be a reduction in time spent completing pre- qualifi cation questionnaires (PQQs). So I am pleased to report that PAS 91, launched by the Department for Business, Innovation and Skills (BIS) last year, with the aim of reducing the time and cost of completing PQQ forms through the establishment of common criteria, appears to be receiving broad industry support. The same can also be said about the Safety Schemes in Procurement (SSIP) initiative, which continues to be increasingly recognised by clients. And guess what? The two schemes are even compatible!
March 2011 ECA Today 15
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72