Where Sugar can sweeten the pill
Apprentices are vital to the well-being of the region’s industries big and small. But there has to be suitable work for them to do, says Douglas Kell.
THE purpose of Sir Alan Sugar’s recent visit to our region as the Government’s new Enterprise Champion was to promote employment through apprenticeships and equip UK Ltd for fight-back from recession.
Civil engineering normally offers opportunities. Youngsters applying themselves can rise from apprenticeship to management. That even includes school-leavers of minimal academic qualification, those most vulnerable in these times.
If they show “hands on” skills, they can be brought on. The Civil Engineering Contractors Association (North East) now runs courses for them with local colleges, courses we hope will spread through Britain.
Many civils’ names in the North East will be familiar to Top 250 readers – Volker Wessels, Tolent, Cundall Johnston, for example – also Balfour Beatty, Birse, Byzak, Carillion, Volker Stevin, Hellens, Lumsden and Carroll, though some of these are outside the Top 250, due perhaps to their head office location.
But all these, and more – such as Hall Construction, and Seymour whose signboards also pinpoint building sites – welcome young abilities, as do many smaller firms.
A lot of contracting, however, needs public investment: road and bridge building, hospitals, schools, rail infrastructure, for example.
A study by the Construction Products Association shows that despite 10 years of welcomed public investment by the Labour Government, too many targets have been missed, replaced or abandoned.
Schools programmes have been revised three times. Biggest casualty, though, has been the “10-year” transport plan. CECA fears the focus on headline projects obscures an awards famine among smaller contractors.
Since recession – and before this year ends – almost 20% of the workforce – 2,700 jobs – may be shed by smaller civil contractors in our region alone.
The Royal Institution of Chartered Surveyors says upgrade and maintenance of infrastructure is now at its lowest in more than a decade.
Projects like London area’s Crossrail and Thameslink metro lines, the Thames Tideway and Scotland’s new Forth Road crossing, comprise a massive capital spend.
But they don’t protect North East jobs many young ex-apprentices could have filled before long; even a slashing of 15% VAT charges on home improvements would have helped small contractors.
Fast forwarding £13.5bn of road and rail improvements, the Government’s nationwide antidote for construction and civils, will fail the North East.
Treasury figures confirm: spending on transport per person for our region is less than a third of London’s. In the £6bn package of road contracts advanced the only North East project, a brief upgrade to motorway of the A1 south of Darlington, was already due to start.
Mainline train operators, encouraged by rail travel’s revival, want old lines reopened to passengers. Ashington, Blyth and Washington could benefit from what the North East Chamber of Commerce says would create jobs, improve business, cut road congestion.
A reopened Leamside line would link Washington with Newcastle and give an alternative Newcastle- Teesside route. Nexus, however, has already been refused a Metro extension to Blyth, and while a Metro system for Teesside and an A19 upgrade offer prospects, these could be years away.
A damming of public funds within 18 months looks certain; we face horrendous national debt for years. So what about diverting the public millions (billions?) wasted on hi-tech schemes? Bridges and tunnels at least do their job.
Failure to invest in education facilities, transport infrastructure and homes will delay our recovery longer – and undermine skills and ability of the construction industry for years.
We all have to remain optimistic the green shoots will arrive before spring; without substantial public and private investment here the North East’s construction industry will further diminish, to such a level it may not be able fully to recover.
Sir Alan, please tell your Government that apprentices taken on need work to do. Figure juggling doesn’t create it.
Douglas Kell is North-East director of the Civil Engineering Contractors’ Association.
