Responding to the Liberal Democrat election manifesto, ICE Director General, Tom Foulkes, said:
UK Infrastructure Bank (UKIB)
“The Liberal Democrats rightly highlight the importance of continued investment in our transport and energy infrastructure, despite the restrictions the financial situation places on government spending. The plans for a UK Infrastructure Bank to leverage large volumes of private investment are much more ambitious than those for a Green Investment Bank put forward by the other parties. They also show that the party recognises the huge scale of the challenge of providing the infrastructure that will underpin the transition to a green economy.
“ICE has been calling for an infrastructure investment bank or similar mechanism for some time to attract private investment. As with the Liberal Democrat proposal, we have stressed that it should be a permanent institution with a long term strategic remit that helps to create a stable environment for private investors. We believe the principles by which a UKIB would operate underpin a mechanism that could really work.”
Transport
“The Liberal Democrat plans to encourage greater use of public transport by road users with additional railway capacity would help ease the growing levels of congestion on our roads. However road travel will continue to be the mode of choice until we have that additional capacity. Cutting the major road budget to pay for it, would only lead to further deterioration of road surfaces.
“We welcome the recognition that a project on the scale of High Speed Rail will demand huge financial commitment and benefit from the creation of a funding mechanism such as the proposed UK Infrastructure Bank. We believe this unit would successfully unlock the scale of investment needed for projects of this significance.”
Energy
“We are encouraged by the Liberal Democrats plans to accelerate the up scaling of renewables sources of energy and goal to achieve completely clean electricity generation by 2050. In particular, additional support for the advancement of offshore wind and marine, which has the potential to meet up to half the UK’s energy needs, and the development of a UK-based supply chain is welcome.
“However development on this scale presents many challenges. Making CCS mandatory on new coal-fired power stations is crucial but further work is needed to provide certainty around funding and regulation which has delayed progress in the past. We also have concerns about the exclusion of nuclear energy which is a proven low carbon technology. We consider it a vital part of the energy mix if the UK is to achieve a low carbon energy network.”
Planning
“We have concerns that the Liberal Democrat proposals to abolish the Infrastructure Planning Commission will have an adverse impact on the delivery of nationally significant infrastructure. A regime of local level decision making on major infrastructure projects will only deter private investment because of its length, uncertainty and cost – exactly what happened in the past. A regime that ensures decisions on major projects are taken at the appropriate level provides certainty to industry and local people, guaranteeing applications are processed within a fixed timescale.”
Water
“We welcome the provision of compulsory smart meters for water stressed areas which will help the public to become more aware of their consumption of our vital resources. Demand reduction is crucial to managing our water supply and smart meters will enable more efficient behaviour. They will also have the added benefit of saving consumers money on their water bills.”