Public spending cuts could wreck the green agenda

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The ability of the construction industry to develop low-carbon technologies will be undermined if the next government cuts public spending on building projects, the new chief construction adviser has warned.

Paul Morrell, the former senior partner of Davis Langdon, was speaking to Building after being confirmed in the role last week.  Morrell's task will be to act as a liaison between the industry and government, to advise Whitehall on formulating policy and to help the industry to carry it out.

He stressed that it was "not his role to direct policy", but added that he believed the government was fully aware of the importance of public investment on its other goals, such as sustainability. "The UK's ability to respond to things like the carbon agenda will go if firms don't have the fuel of turnover. It would surprise me if there was anyone sitting in the Treasury now saying how can we cut this spending, without realising the dramatic impact it would have."

Morrell said his "immediate priority" would be working out how construction could help the UK meet its carbon reduction commitments. He said: "Carbon is a huge challenge, and I don't think any of us have come together yet on that front. We're going to need to start counting carbon as rigorously as we count money, and accepting that a building is not of value if the pound signs look okay, but the carbon count does not."

He said that the opportunities for the building industry in the area were "enormous". He said: "Saying that buildings generate 40% of carbon can make them sound like Godzilla creatures stalking the earth and doing bad things to us. The reality is that that's the case because the home or workplace is often where we are when we're expending energy. But it means the potential for the industry to contribute to the reduction target is enormous."

The problem, he said, was that the industry as a whole still needed to be pointed in the direction of these opportunities. "The biggest problem so far is that the market isn't responding. It wouldn't be profound to say you needed to use a combination of market regulation and fiscal incentive."

One of Morrell's first jobs as construction adviser will be to chair the Construction Innovation and Growth team, which is focused on the industry's contribution to the carbon cutting agenda. This is expected to have its first meeting next month. He said he hoped the taskforce would produce a "roadmap" by next March.

Morrell said his other priority was to extract more value for money for the taxpayer from construction projects. He said:

"It has to be right to get more out of every pound. So there needs to be a continuing improvement agenda."

He said he would direct this through the Office of Government Commerce's construction strategy board (formerly the public sector construction clients forum), which he will chair. He identified government leadership, waste in procurement and productive working environments as areas for improvement.

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