With the UK economy currently performing worse than expected, it is vital that engineers successfully argue the case to ensure vital infrastructure projects receive the funding they require.
Speaking at the ICE East Midlands organised breakfast briefing Living with zero domestic growth - the challenge for the UK, ICE Vice-President Geoff French outlined the current economic situation and explored the implications and possible solutions for infrastructure funding.
He explained how the current situation since the economic downturn began in 2008 is not typical of the boom/bust cycle usually seen in the UK and warned of the danger that zero/low growth may be the new reality, especially since the current size of government debt makes further cuts to public spending very likely.
His assessment is borne out by figures released by the Office for National Statistics which show that the economy shrank by a further 0.3% in the first quarter of 2012 and that government debt is increasing and looks to do so for some years.
The construction sector has been particularly badly hit – the first quarter of 2012 saw a 4.9% reduction in spending – the sharpest fall since the beginning of the current recession.
Yet, the UK’s network of infrastructure – the energy, transport, water, flood protection and waste management systems on which we all depend, require funding for renewal and replacement.
Geoff argued that to secure this funding, it is vital that engineers successfully promote the case for funding of infrastructure projects, projects which underpin the nation’s and the region’s economy and that alternative sources of funding are pursued, from both public and private sources.
Engineering companies should also look to increase their turnover on services provided outside the UK in order to generate income and, in turn, boost the economy.
Geoff French commented: “With the danger that the economic situation we are currently experiencing is the new reality, there is huge competitive pressure for central government funding. Infrastructure must compete for funding with the benefits, health, education and defence sectors.
“It is vital, therefore, that engineers look to all possible sources of funding: from government, local authorities, LEPs and public private partnerships and make a strong case for funding of infrastructure, which is critical to our society and economy."
More than 50 delegates, made up of an audience of senior ICE members from the region and key regional influencers and decision makers attended the event in Kegworth on Friday (29 June). The meeting was hosted by ICE East Midlands Regional Chairman, Robert Armitage.
In giving his vote of thanks, Robert congratulated Geoff on providing an informative and thought provoking presentation, which clearly identified the real possibility of zero/low growth in the UK for some time.
He added: “Geoff clearly identified the need for us as an institution to get more engaged in influencing bodies (such as LEPs and political parties), to argue for the limited available resources to be targeted where they are needed the most - with emphasis on vital infrastructure funding.
“The quality of questions and positive comments from the floor confirmed how much the audience appreciated the clarity of evidence presented. Geoff laid out a thought provoking challenge to engineers - to look for work in the economies that are predicted to grow the most, and are likely to need the engineering skills and knowledge that we possess, both as individuals and companies.”