The industry has welcomed the new National Infrastructure Commission, chaired by cross-bench peer Lord Adonis and announced yesterday by chancellor George Osborne – but reactions stressing the importance of different competing priorities have highlighted the challenges it will face.
According to yesterday’s announcement, the new NIC will “look at the UK’s future needs for nationally significant infrastructure, help to maintain UK’s competitiveness amongst the G20 nations and provide greater certainty for investors by taking a long term approach to the major investment decisions facing the country”.
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It will assess the UK’s infrastructure needs every five years, but look 30 years ahead across all key sectors of economic infrastructure including energy, roads, rail transport, ports and airports, water supply, waste, flood defences, digital and broadband.
The government statement says that the NIC will “consider how investment in these sectors can support housing development” – suggesting that housing will fall within its remit but be secondary to other aspects of the infrastructure agenda.
“The housing delivery market is to difficult to change and modernise, but we need to think strategically about where you want to put housing. At least with the NIC we will have an independent commission looking at the problem.”
Don Ward, Constructing Excellence
Don Ward, chief executive of Constructing Excellence, said that he was extremely supportive of the new body, but told Construction Manager that its first priority should be housing.
“You can’t divorce housing from city and regional developments, if it’s about developing the economy for the 21st century it has to look at the workforce too. The housing delivery market is to difficult to change and modernise, but we need to think strategically about where you want to put housing. At least with the NIC we will have an independent commission looking at the problem.”
He also hoped that the NIC would concentrate on energy infrastructure, including bringing stability to energy policy in the renewables sector and reviewing the nuclear new build programme.
Julia Evans, chief executive of BSRIA, was encouraged by the stress on the energy network, and the transport connections in the north of England. But she said: “However, neither government nor the Commission must duck the important construction decisions that need taking now. We still need to get on and build the necessary level of houses required for the UK immediately. And we hope that the role will also look at the necessary skills needed within the construction industry to deliver such housing.”
Aecom’s Richard Robinson, chief executive for civil infrastructure in Europe, Middle East, Africa and India, said that “industry optismism may be tempered by caution. The infrastructure commission must have the necessary binding decision-making powers to initiate infrastruture and get Britain building. It’s crucial the commission doesn’t become a long-grass forum into which politically charged projects are kicked.”
Chris Pike, who leads Arcadis’s work in the infrastructure sector, commented: “We know that Crossrail was on the drawing board for too long. West Coast main line will run out of capacity before HS2 is open, and the question of new airport capacity in the south east has fermented into a toxic issue for any government. Therefore the need for an independent commission with cross party support has never been stronger. Key to the success of this commission will be its ability to address the short and medium term needs as well as looking longer term.”
The Treasury is due to consult on the terms of reference for the NIC and how it will advise government and go about its work.
The NIC will be made up of around 25-30 permanent staff, but will have statutory powers to allow it to draw on the expertise of the sectoral regulators, and key national delivery bodies such as Network Rail and Highways England.
