News
Call to tackle late payment and skills crisis
THE ECA HAS WELCOMED Chancellor George Osborne’s plans to increase spending on infrastructure and housebuilding. However, it warns against missing out on opportunities to reform construction contracts by tackling late payment and a looming skills crisis in the craft sector. ECA group chief executive officer Steve Bratt commented: ‘The government’s National Infrastructure Plan represents a solid investment for the UK economy, and the extra £400m for housebuilding is most welcome. Every £1 spent on construction leads to an increase in GDP of £2.84 and stimulates growth elsewhere in the economy worth £1.84, so a strategic increase in construction should be good news all round.’
However, investments will not deliver the desired boost to the economy if contracts do not ensure this cash reaches subcontractors and SMEs. In a 2011 survey of the ECA’s
membership – 80 per cent of whom are SMEs – 75 per cent of respondents said that late payment was the single biggest factor holding back their growth. Bratt says that the central
government contracts arising from the government plan could showcase best payment practice and set an example to the industry. He explained: ‘Central government contracts require main contractors to pay their subcontractors within 30 days, but the same requirement doesn’t exist across the public sector as a whole, or to the private sector at all. The ECA would like to see this protection extended to all areas of public sector procurement. Main contractors working on projects endorsed by government shouldn’t be allowed to hold back payment beyond 30 days – smaller firms simply can’t wait. If they aren’t paid on time, businesses will fail and jobs will be lost, undermining the Treasury’s investment.’
APPRENTICESHIP MEASURES WELCOMED
THE ECA HAS APPLAUDED the government’s plan to raise the profile of vocational training, but warns that only industry-recognised apprenticeships should take the credit.
‘It’s good to see the status
of vocational training being raised. For too long now apprenticeships have been seen as second class to degrees. If we are to make the UK’s apprenticeship programme truly world class, then it is important that apprenticeships are given the public recognition that they deserve,’ said ECA group CEO, Steve Bratt. The ECA is, however, urging government to
think carefully when determining the criteria for an apprenticeship, as well as funding. These must apply to industry-recognised qualifications that are meaningful and provide benefit to employers. There are a number of short courses that fail to train adequately and, ultimately, leave people under-qualified and out of pocket.
Bratt said: ‘Our country is at a crossroads, and if we don’t act now to shore up the skills deficit in our craft industries by investing in skilled apprenticeships, we will have little chance of successfully emerging out of the recession.’
TRAINING DISCOUNTS AVAILABLE
DISCOUNTS ON MORE than 1,800 training opportunities are now available to employers in the BSE sector, courtesy of SummitSkills and the Joint Investment Programme. Employers and training providers can receive up to £171 worth of discounts on their training costs, providing affordable access to new skills to meet industry- specific competence requirements.
Employers are being urged to take advantage of the discounted training offers to enable their personnel to reach
standards required to qualify for registration with the Microgeneration Certification Scheme (MCS). Registration will become critical for installers who want to take advantage of the demand for environmental technologies, as householders will consider MCS a guarantee of competency and quality. Bob Blake, operations manager at SummitSkills, commented: ‘If businesses and independent installers are to benefit from the many opportunities created by the government’s low carbon agenda, the BSE workforce will need to have the right accredited training and certification or they will be left behind. Now is the time for businesses to invest in their training.’
The training offer runs to July 2012 and is open to employers in England. To qualify, trainees must already have reached NVQ Level 2 for plumbing or NVQ Level 3 for electrical installations. n For more information, call 01908 303960.
6 ECA Today January 2012
SHUTTERSTOCK/ AUREMAR
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