Thursday 23 September 2010

Tough Questions from Building Industry


I had the good fortune to visit Dove Building Materials in my constituency last week, one of the biggest builders merchants in the North East. For much of the building industry, from contractors to those in supply chain, times have been tough as the recession hit particularly hard.

I know personally a few builders who went under last year and I hope putting the national finances back in order will help give people and business the confidence to start investing and building again.

What was really interesting about this visit was that Doves, despite being in one of the worst effected industries here in the North East has been able to survive, mainly due to strong and careful fiscal management - a lesson for us politicians if there ever was one.

But the building industry also has some tough questions. Many in the industry would like to see a large huge number of public sector contracts created to help boost business.

I can of course understand why but I honestly think it would be irresponsible for the government to try and create a false economy for any industry as in the end it inevitably becomes unsustainable in the long term.

However that's not to say Government should ever sit idly by. Far from it, we must be innovative and forward thinking in our approach. Which is why I was pleased to hear my Coalition friend and Government Minister Chris Huhne give more detail on our proposal for a 'Green Deal' this week - something already welcomed by the UK Building Council which they believe could lead to a 'refurbishment revolution in the UK'.

The Green Deal will help deliver around 250,000 jobs – in the private sector - by allowing companies to pay up front for eco-improvements to homes such as insulation and get paid back through fuel bills. It has also been extended to commercial premises and the policy is a clear example of where we can use the private sector to grow the economy and actually relieve some of the pressure created by the financial mess the country has ended up in.