24 March 2010

BUDGET 2010: The Institution of Civil Engineers (ICE) Budget response:

Commenting on the creation of a Green Investment Bank - Tom Foulkes, ICE Director General said:

 “A £2bn Green Investment Bank (GIB) is certainly a good start – we have been calling for new thinking on how to unlock the long term sources of funding needed to finance infrastructure for some time. However, as Infrastructure UK has acknowledged, the UK will need to invest £40-50bn per annum in infrastructure, so with a starting fund of only £2bn clearly there is some way to go.

“It is vital therefore, that when Government says that this funding is just a start – it means it - and that it continues to work with industry to increase the volume of investment. This must take into account the need for investment across a whole range of sectors including water, waste and flood defences

“The development of a National Infrastructure Framework is a very welcome step – decisions on the UK’s infrastructure development cannot be made in isolation – they must be based on the long term needs identified across the sectors. We are keen to play an active role in the Framework and work with Infrastructure UK on how this new bank can deliver a sustainable funding solution for future infrastructure.” 

Commenting on the £66 million investment in ports for offshore wind manufacturers - He said:

“If we are to remain a world leader in the offshore wind industry, the UK must develop a supply chain with enough capacity to support rapid expansion of the sector over the next decade.  Port infrastructure will be crucial to achieving this and therefore ICE welcome’s the investment in UK ports as a first step towards unlocking further private investment in creating coastal manufacturing hubs.

”However this is only one area of investment needed to fully develop the domestic supply chain. We will also need to build manufacturing capacity in other key areas such as installation vessels, foundations and cables to transport the energy onshore. Government will need to put further measures in place to give these industries the confidence to invest in supporting the offshore programme.” 

Commenting on the commitment to reform the energy market to provide clean, secure and affordable energy in the long-term, he said:

“Broadly speaking we obviously welcome any reforms that will drive the UK towards a sustainable, decarbonised energy network in future and will look forward to the 2011 white paper. In the meantime however Government must focus on finalising the energy NPSs and facilitating the upscaling of low carbon technologies such as wind, nuclear and carbon capture and sequestration. Time is ticking for the UK to address our security of supply crisis to sit round waiting for further consultation, we need action.”

Commenting on the £270m in 2010-11 for 20,000 more university places, largely in key subjects like science, technology, engineering and maths, he continued:

"As we make the shift towards a low carbon economy there will be a growing need for skilled engineers in emerging technologies, especially within the energy sector. Skills shortages have already been identified in key areas including offshore wind, nuclear energy and marine and tidal technologies and in the interim we will have to import engineers to fill these gaps.

“The additional university places in today’s Budget will help plug this gap and ensure we are well-equipped to deliver a new generation of low carbon infrastructure, however universities must also receive sustained long-term funding over and beyond this announcement.

“There is little point however in investing in skills if there are no jobs for the future graduates to go to. There must be a secure environment to give industry the confidence to invest in its workforce."

Commenting on the investment of £100m in local roads, he said:

“With the shortfall in road maintenance budgets reaching £1bn, an extra £100million investment unfortunately will have little impact. On top of the existing maintenance back logs, we have had the worst winter for 30 years causing further deterioration and yet more road damage, especially pot holes. More financial commitment is needed from Government to encourage a shift to long-term, preventative road maintenance to properly address existing defects, rather than short term ‘quick fixes’ that fail to tackle the root of the problem.”

ENDS

For more information:
Emily Beadon,
ICE Media Relations,
t: 020 7665 2261,
e: emily.beadon@ice.org.uk

Notes to editors:

• The Institution of Civil Engineers (ICE) was founded in 1818 to ensure professionalism in civil engineering. It represents 80,000 qualified and student civil engineers in the UK and across the globe. The ICE has long worked with the government of the day to help it to achieve its objectives, and has worked with industry to ensure that construction and civil engineering remain major contributors to the UK economy and UK exports.