David Pollock, director of the ECA, has given a cautious welcome to the measures announced by Chancellor Gordon Brown in his pre-budget report, including moves to review employers' liability insurance and the construction industry tax scheme and proposals to increase training support.

By announcing a review of the Construction Industry Scheme the Government has effectively admitted defeat in its attempt to move construction workers onto company payrolls. The scheme has been widely criticised for its excessive red tape. The Inland Revenue is now to publish a consultation document and seek the views of the construction industry.

With regards to the problems with employers' liability insurance, Pollock says: "Since the collapse of Independent Insurance and the commercial shock waves caused by September 11, the construction industry has been hit by massive premium increases. The formal review of employers' liability insurance is welcomed, but we need action sooner rather than later for, while the Department deliberates, the excessive cost of insurance will result in companies suffering and even being tempted to be in business illegally without insurance cover."

On training, plans for a new employer-led task force headed by Sir Roy Gardener have been particularly welcomed. The task force will expand the uptake of modern apprenticeships and set new training targets. Pollock says: "Skills training is high on the ECA agenda. We are pleased that Gordon Brown recognises that government must work with and support industry.

"In all, we give this pre-budget report a cautious welcome. The Chancellor has shown that he is aware of the difficulties being faced. We look forward to seeing the April budget and urge the Chancellor to extend and increase the positive initiatives outlined in this statement."

Source

Electrical and Mechanical Contractor