Building industry chides McCreevy

FINANCE Minister Charlie McCreevy was given a taste of his own medicine by the Construction Industry Federation yesterday.

At a major conference on value for money in construction one of the Construction Industry Federation’s chief speakers, Alan Crane, accused Mr McCreevy of “banging on” about the industry while failing to examine the State’s role in how it might ensure that all concerned were better served by the sector. “They are clients as well as policy-makers” and could have a major role to play in tackling the cost question if they did more real work with the industry instead of lecturing the sector from the podium.”

Mr Crane is chairman of the Rethinking Construction organisation, a voluntary body set up by the industry to improve its relationship with the broader community in Britain including its relationship with the State.

Earlier Mr McCreevy rowed into the sector when he launched the conference. He made it clear to those present that he was not willing to continue with the current regime on costs for State contracts. He welcomed the fall in construction inflation, but the industry needed to take more steps to bring price levels down further.

The minister said the State was the industry's biggest customer and must get better value right across the board.

He asked whether the private sector enters contracts where design and other fees escalate as project costs increased, and whether the private sector enters major contracts on the basis that an initial price can facilitate lots of further increases. Minister McCreevy said the recent ESRI review of the National Development Plan had raised serious issues about the divergence between estimates and eventual costs of infrastructure projects. He said the Government would consider the review in the weeks and months ahead.

On the Budget, the minister said rolling back tax reforms was not on.

“Lower taxation has been good for the economy, and I intend to stick to that path,” he said, adding spending increases had been limited to 7% this year, and this trend would continue.

Director general of the CIF Liam Kelleher laughed off the minister’s dressing down saying it was “mild” by comparison with what he has been capable of delivering in the past.

However, he said he was confident that the major issues of cost and value for money can be tackled provided the state and the sector combine in a more open and “understanding fashion to ensure that the true concerns of both sides are better understood.”