Another push needed on Egan says construction minister, but Labour will not ban retention.
construction minister Nick Raynsford this week outlined his vision for the industry in the event of a Labour victory in next month's election.

Raynsford revealed his plans as the three main parties published their manifestos in preparation for polling day on 7 June (see below).

The Conservative manifesto promises to streamline planning procedures to make it easier to build on brownfield sites, and the Liberal Democrats are proposing a cut in VAT on the renovation and repair of buildings.

Raynsford said a Labour government would drive through promised spending targets. He said: "We need to see the benefits of substantial capital investment, which the government has laid the basis for in its spending review."

Raynsford said Labour would spend £19bn over the next three years, including funding transport infrastructure, schools and hospitals.

He added that there needed to be another push on the Rethinking Construction report, written by Sir John Egan for the government in 1998.

He said: "We want to see further progress on this agenda. There is still a long way to go. Partnering has to be accepted widely rather than seen as a new way to work. It needs to become the norm."

Raynsford said the health and safety targets laid down at the government–industry safety summit in February would be a top priority.

He said: "To minimise risk requires an attitude of mind from the boardroom to what happens on site that safety is a primary concern, not someone else's responsibility."

We want to see further progress on Egan. Partnering has to be accepted widely. It needs to become the norm

Nick Raynsford, construction minister

Raynsford said Labour did not intend to ban retention, the system by which some money is held back by an employer until the termination of a contract, despite lobbying from construction bodies and an all-party group of MPs.

He said: "It would be inappropriate to ban them completely without having alternative arrangements in place to ensure that all parties' interests are protected."

Raynsford did concede that retention was part of the adversarial culture that the Egan and Latham reports tried to tackle. But he said: "We have to work constructively with the whole industry on this."

Raynsford said: "I have been incredibly heartened by the way the industry has responded to what we have done. There has been real support, enthusiasm and commitment to improve the performance and profitability of the sector."

He added that more work was required on the Inland Revenue's construction industry tax scheme and the Constructionline vetting service.

And he defended the record of the DETR, which could be split up after the election.

He said: "The department has made better links between transport, planning and other divisions of the department. We are already beginning to see the fruits of this through new regional planning guidances, which incorporate transport issues."

However, speculation over construction's home at the DETR has increased since former Bovis director Robin Young was made permanent secretary at the Department of Trade and Industry. The thinking is that Young's appointment may be in preparation for a shift to this department.

What the parties are promising

Labour
  • Set up Small Business Service and reform
  • tax treatment for small businesses
  • Bring all social housing up to a set standard by 2010
  • Reform planning system to speed up decision-making
  • Build early excellence centres for infants, nurseries and schools
  • Press on with quality mark to tackle cowboy builders

Conservative
  • Create local regeneration companies with statutory powers to accelerate the development of run-down areas
  • Reverse the decline of coastal towns, including the improvement of transport links
  • Streamline planning to promote building on brownfield sites. Give councils the power to extend green belts
  • Set out long-term investment plans for roads and public transport

Liberal Democrat
  • Cut VAT on the renovation and repair of buildings, paid for by introducing VAT on new-build work
  • Scrap 25 unnecessary business regulations
  • Require workmanship guarantees to help combat cowboy builders
  • Promote more affordable housing by allowing local authorities to specify the percentage of social housing in new developments

Liberal Democrat
  • Cut VAT on the renovation and repair of buildings, paid for by introducing VAT on new-build work
  • Scrap 25 unnecessary business regulations
  • Require workmanship guarantees to help combat cowboy builders
  • Promote more affordable housing by allowing local authorities to specify the percentage of social housing in new developments

What the FMB wants

The Federation of Master Builders this week revealed its election wishlist – with measures to stamp out the black market at the top of the list. The FMB called for VAT to be cut from 17.5% to 5% on repair and maintenance. It also wanted insurance-backed warranties for work. The federation said the high VAT rate encouraged the public to use cowboy builders, which meant they got a second-rate service and the Treasury lost £43bn a year. The FMB asked for penalties for late payment of commercial debt to be extended to the domestic market so homeowners would pay for work more promptly.