Responding to the Conservative election manifesto, ICE Director General, Tom Foulkes, said:
Infrastructure funding
“We welcome the recognition that extensive and reliable infrastructure will underpin a rebalanced and low carbon economy and that continued investment in UK infrastructure is needed. The proposed Green Investment Bank, as in Labour’s manifesto, is a positive step and it is encouraging to see consensus on the need to find new ways to direct investment towards infrastructure.
“However there is little detail on how such a bank would attract the scale of investment needed to fulfil the Conservative’s vision for new infrastructure – from a new High Speed Rail network through to a fleet of new power stations. It is also important any new funding mechanism supports the roll out of existing infrastructure technology as well as new, green technology start ups.
“We still believe a more ambitiously sized National Infrastructure Investment Bank, able to draw on domestic and international capital markets and pension funds, would be a better vehicle in attracting the scale of investment needed.”
Energy
“It is good to see the Conservatives have recognised the gravity of the UK’s energy situation. ICE has long warned that the UK’s energy network is stretched to its limit, leaving us at risk of power cuts in future. We must build spare capacity in the network, and we welcome the proposals for reforming OFGEM as a step towards achieving this.
“However, while we continue to be highly dependant on gas, especially for heating our homes, there needs to be more focus on creating extra gas storage capacity in the network. The UK has the biggest demand for gas in Europe but we have very little storage capacity in comparison, which as we saw this winter costs us dearly when there are shortages.
“Clearly, transforming the energy sector on the scale required will require massive investment in new and upgraded infrastructure. A fixed floor price for carbon is welcome as a way to build market confidence, encourage investment and hopefully kick start the industrial transformation we so desperately need to achieve a low carbon energy network.”
Transport
“The commitment and ambition to step-up our transport network is encouraging. Both Cross Rail and High Speed Rail offer huge economic and environmental potential and could free up capacity on a stretched network. However, plans for projects on this scale, especially High Speed Rail, must form part of a well thought out, long-term transport plan that offers people real choice and reduces car dependency.
“Such projects also demand huge financial commitment, and we will continue to push the case for a National Infrastructure Investment Bank – a more ambitiously sized Green Investment Bank - to unlock the sort of investment needed for projects of this significance.
“The promise of longer, more flexible rail franchises is also a welcome step and will encourage more private investment in expanded rail capacity. Sustained investment in more and better trains will make rail travel a better choice."
Planning
“A fair and predictable planning system is vital for the UK’s global competitiveness. Long and expensive planning inquiries have been one of the biggest disincentives to private investment in infrastructure in the past so we welcome plans to overcome this by fast tracking nationally significant projects. However we don’t have time to be sending vital projects such as nuclear power plants back to the start of the process, so it is encouraging that the Conservatives have factored in transitional arrangements for projects already before the Infrastructure Planning Commission.”