Get Scotland Building, the biggest coalition in the country's construction industry's history, was launched today in the Scottish Parliament to demand that the Scottish Government does all it can to prevent 16,000 predicted job losses in the Scottish construction sector and to create conditions in which small and medium sized construction businesses can survive the recession.
The Get Scotland Building coalition, spearheaded by British Precast, the Builders Merchants Federation, the Federation of Master Builders and the Modern Masonry Alliance, is demanding that the Scottish Government supports its 10-point plan to Get Scotland Building.
The campaign has cross party support and argues that current Scottish Government proposals do not go far enough towards tackling the real problems affecting the Scottish construction industry and the wider housing sector. Get Scotland Building is calling on the Scottish Government to help the beleaguered construction industry survive the worst recession since 1980 by creating a new business environment in which construction companies can prosper. The ten point plan includes a plea to get banks lending again; a strategy to refurbish Scotland's existing homes to make them more energy efficient; encourage the UK Government to cut VAT to five per cent for property maintenance; a major increase in new social housing and a defined timetable to complete the Government's planned investment in new schools and hospitals.
Chris Pateman, Managing Director of the Builders Merchants Federation said: "This isn't just a campaign about businesses or figures or even about jobs; it's a campaign about people. It's about those families who find themselves with grown-up children unable to leave home, or elderly parents who need looking after. We all need the government to create conditions in which people can borrow money at sensible rates or have the confidence to invest their savings in those millions of pent-up garage conversions, house extensions and roof insulation jobs that can make an immediate and quantifiable improvement to individual families' quality of life. And, at the same time, improve the quality and energy-efficiency of the built environment, reduce the waiting lists for social housing and take some pride in the size, scope and skills of the nation's largest industry - building."
Martin Clarke, Chief Executive of British Precast said: "It is time for the whole British construction industry to get off its knees, unite together and stop playing the victim - we have a pivotal role in kick-starting the economy by supplying real and sustainable assets in the form of new and improved houses and infrastructure. We have the skilled men and women to do the job, and the materials to build with, the people of Scotland have the need, the Government has the land, the power and can generate the funds - it just needs the willpower. Let's Build!"
Grahame Barn, Director of Federation of Master Builders Scotland said: "The FMB represents those hardest hit by the recession, the small and medium sized enterprises, and the backbone of the economy. Scotland has a proud history of training apprentices however ConstructionSkills recently reported that out of around 8,000 construction craft apprentices in Scotland, 744 had been made redundant and were unable to finish their apprenticeship. On top of the huge amount of job losses the industry is facing, the loss of apprentices will leave the industry facing a severe skills shortage once the recovery comes. We are not asking the Government for a financial bailout, we are simply asking the Government to allow our members to do what they do best and keep building a better Scotland."
Mike Leonard, Director of the Modern Masonry Alliance said: "The time has come for the industry to unite and for the Government to take decisive action. Our factories are closing and our skills are being lost. Investing in building will improve lives, provide employment and protect our UK building materials manufacturing capacity, which is vital for all of our futures. The knock on effect when we stop building is massive. We are anxious to work with government to lay the foundations for our country's economic recovery."
ENDS
Note to editors
According to the ConstructionSkills Network in 2008 there were 253,898 people employed in the construction industry in Scotland. ConstructionSkills Network predicts employment in the Scottish construction industry will fall by 7.5% in 2009 and that in 2010 there will be 237,736 people working in the construction industry; this equates to 16,162 job losses.
Indicators now demonstrate that many firms in the construction sector will struggle to survive in the current market:
* 90,000 predicted job losses for SME builders
* Employment in construction between 2008/2010 will decline by 20%, which is higher than any other sector and equivalent to 447,000 UK job losses, according to the Local Government association.
* Building prices plummeted 7.5% in last quarter of 2008
* House building at its lowest peacetime level since 1921
* House prices have fallen by 16% to date, according to the BBC.
* The Scottish private housing sector: new orders for the sector tumbled by 26% last year this year
* A record 4.5 million people on council house waiting lists.
* Average monthly value of new orders between May and November 2008 slumped to £2.17 billion (at 2000 constant prices), compared with £2.84 billion in 2007 and £2.87 billion in 2006, a fall of 25 per cent
* According to the FMB State of Trade Survey for Q1 2009, 65% of FMB companies had reported a fall in workloads, a fall for the fifth consecutive quarter.
* According to the FMB State of Trade Survey for Q1 2009, Expectations for the future remain downbeat with 57% expecting lower workloads in quarter two 2009.
* Eight construction companies are going insolvent every day, according to PricewaterhouseCoopers.
It is against this background that the Get Scotland Building campaign is calling on the Government to put into action its 10-point plan.
The 10-point plan to Get Scotland Building
1. Calls on the UK Government to cut VAT from 17.5 per cent (currently at the temporary rate of 15 per cent) to five per cent for all building repair and maintenance work.
2. Develop and implement a coherent strategy to deal with Scotland's existing housing stock to make it greener and more energy efficient.
3. UK Government and the banks must ensure the swift return of responsible lending to prudent borrowers, coupled with the reintroduction of mortgage interest tax relief.
4. Calls on the Scottish Government to set targets for all local authorities to fast track the planning process to release and designate land for social housing to ensure that sufficient land, in the right locations, is made available to facilitate the completion of 20,000 units of social housing by the end of 2010 in line with the recommendations of the ‘Firm Foundations: The future of Housing in Scotland' document.
5. Calls on the Scottish Government to follow through on the reforms to the planning system announced in October 2008.
6. Calls on the Scottish Government to bring forward as a matter of urgency details on how The Scottish Futures Trust will facilitate the construction of schools, hospitals and prisons to ensure that projects are completed in 2009 and 2010 respectively
7. Calls on the Scottish Government to introduce a section 75 agreement holiday and then subsequently cap the value of section 75 agreements.
8. Calls on the Scottish Government to observe its commitment to pay contractors within 10 working days and ensure, through contract terms, that contractors pay their subcontractors within the same timeframe.
9. The UK Government must reform stamp duty so that it is only applied to the proportion of the value of the house which is in excess of the taxation threshold.
10. The UK Government must reintroduce empty property rate relief.
Get Scotland Building
Get Scotland Building is a coalition of organisations from within the construction sector who are calling for the creation of a new business environment to help the Scottish construction industry prosper during the recession. Get Scotland Building has developed a ten point plan which it believes will help the Scottish construction sector move out of the recession.
For more information please visit: http://www.getbritainbuilding.org/
The Builders Merchants Federation
The BMF is the UK trade association representing the majority of companies in building materials distribution. Its members stock everyday building, heating, insulating, plumbing and timber products - and together with the major manufacturers and distributors - represent almost 500 businesses with combined annual sales of over £7billion. The BMF celebrated its centenary in 2008.
For more information please visit: http://www.bmf.org.uk/
British Precast Concrete Federation
Tracing its roots back to 1918, The British Precast Concrete Federation (BPCF) is the trade association of precast concrete manufacturers. The main aims of the Federation are to promote precast concrete in the construction market and to disseminate information, through a range of industry representation and by shared knowledge, to add value to its member companies.
Members' interests are continually developed through our team of dedicated professionals who have extensive connections with organisations in the UK and worldwide
For more information please visit: http://www.britishprecast.org/
The Federation of Master Builders
The Federation of Master Builders (FMB) is the largest trade association in the UK building industry, representing around 12,000 building companies. Established in 1941 to protect the interests of small and medium-sized building firms, the FMB is independent and non-profit-making, lobbying continuously for members' interests at both national and local levels.
The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to save them time and money. The FMB also offers advice to consumers via its find a builder and check a builder websites.
For more information please visit: http://www.fmb.org.uk/
Modern Masonry Alliance
The Modern Masonry Alliance (MMA) is a strategic coalition of interests with a common cause in developing and promoting masonry construction - the bricks, blocks, stone and lintels; the cement and mortar which binds them together; the researcher and techincans advancing the industry; the men and women who build masonry homes, buildings and structures.
For more information please visit: http://www.modernmasonry.co.uk/
Press contact:
JAYNE CURTIS
Media and Communications Manager
Get Scotland Building
14-15 Great James Street
London WC1N 3DP
T: 020 7092 3844
M: 07769 687 235
E: jaynecurtis@fmb.org.uk
