Infrastructure

CLG DIALOGUE WITH GOVERNMENT ON INFRASTRUCTURE

1. Introduction

a) The construction industry recognises the significant benefits that a robust and sustainable infrastructure brings to the economy and to citizens. The industry plays a significant role in the provision of professional and physical services to develop and maintain the country's infrastructure. Certain components of infrastructure have been successfully reformed (eg rail, ports and airports), but others still require urgent attention (eg energy, housing, roading and water).

b) The construction industry is interested in the development of policy in this area and is keen to assist in the process, particularly with regard to public infrastructure.


2. Issues Related to Public Infrastructure

  • Public procurement - Current systems tend to focus on price rather than best value, and public sector clients appear insufficiently skilled to differentiate among service providers;
  • Public or private ownership - The debate needs to be more informed with appropriate professional advice;
  • Public or private finance - Development must not be hampered by a lack of real options and disincentives for greater private sector involvement through franchising, DBOT and other mechanisms now commonly used overseas;
  • Structural inefficiency - There is duplication and frustration of effort in the current Local Authority structure;
  • Strategic planning - Budget processes and financial options must not hamper longer term planning, life cycle costing and sustainable development;
  • Asset management - New approaches are required by the public sector to cope with growing demands of communities. Strategic partnerships should be encouraged.


3. Way Forward

a) The CLG recommends that the Government convene a working party with heads of relevant departments (eg Transport, Local Government, Economic Development, Environment) to facilitate dialogue over the next year;

b) The CLG offers industry support to help move the debate forward and will lend its support to positive, sustainable solutions to infrastructure requirements.