Osborne speech reaction: commission is great news but we need quick action

We are the builders says industry; now give us something to build.

Jackie Whitelaw
05 October 2015

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Industry reaction to the Chancellor’s speech and announcement of the independent National Infrastructure Commission chaired by Lord Adonis and reporting to government was swift.

“The government announcement today to create an independent National Infrastructure Commission chaired by Lord Adonis is very encouraging  and a strong signal from government of its continued support for the development of our critical national infrastructure,” said key accounts director for infrastructure at Arcadis Chris Pike.

With so many critical schemes in the pipeline including new runway capacity, further high speed rail including the extension of High Speed 2, the much needed trans Pennine link between Manchester and Leeds  Crossrail 2 and a new generation of Nuclear Power Stations, the time for this is now." - Chris Pike, Arcadis

“The choice of Lord Adonis as the cross party chair is an important one as he has long been seen as a champion of UK infrastructure.

“Whilst it is important that Britain thrives and new infrastructure is developed, it is essential that we maintain our strong democratic principles and allow reasoned debate on the case for new infrastructure, including room for objection by those affected by it. It is also essential that the industry is empowered and steps are taken to proactively mitigate against any adverse impacts that might be caused, particularly to the environment," he said.

“However, at the same time we need to speed things up and take the politics out of the decision making. We know that Crossrail was on the drawing board for too long. West Coast Main Line will run out of capacity before High Speed 2 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," Pike pointed out. "But this is not the end of the story; the whole of industry has an obligation to find bold new ways to deliver these new projects more efficiently and for this we must learn from other countries too.

“With so many critical schemes in the pipeline including new runway capacity, further high speed rail including the extension of High Speed 2, the much needed trans Pennine link between Manchester and Leeds, Crossrail 2, as well as improved capacity within our aging motorway network across Britain, and a new generation of Nuclear Power Stations, the time for this is now. We cannot allow ourselves to fall behind any longer by not having a strategy beyond the parliamentary cycle.

"In this changing world we need to redress the balance by reducing our reliance upon imported energy, but we also need to provide the infrastructure needed to connect our cities better, to promote the Northern Powerhouse and link it with London and the South East, as well as continuing to increase investment in London’s transport systems in a way that allows our economy to remain strong and resilient.”

AECOM’s civil infrastructure chief executive for Europe, Middle East, Africa and India Richard Robinson welcomed the news but was concerned there were no powers attached to the commission to make sure the infrastructure it says is necessary gets built.

 "While today's announcement is welcome news to those tasked with delivering the UK's infrastructure, industry optimism may be tempered with caution,” he said.

“The infrastructure commission must have the necessary binding decision-making powers to initiate infrastructure and get Britain building. It's crucial the commission doesn't become a long-grass forum into which politically charged projects are kicked - Richard Robinson, Aecom

“The infrastructure commission must have the necessary binding decision-making powers to initiate infrastructure and get Britain building. It's crucial the commission doesn't become a long-grass forum into which politically charged projects are kicked. 

"Attempting to de-politicise infrastructure decision-making may help bring some of the UK's critically needed infrastructure projects to fruition. Lord Adonis's appointment is a smart move: more than just a political coup, it sends a signal that the commission will be truly cross-party. The challenge now is delivery. Ensuring the UK has the technical and organisational skills to deliver must be a priority."

Richard Laudy, Head of Infrastructure at Pinsent Masons said:  "The UK Government has shown real commitment to the nation's infrastructure by forming a national infrastructure commission – it's good news for Britain's future infrastructure needs as what the UK has been lacking is a coherent, strategic and long-term plan to tackle the nation's infrastructure deficit.

"The fact that the UK Government has chosen a former labour peer to lead it is also important because it demonstrates a commitment to get the best brains involved irrespective of political persuasion."

Laudy wanted the commission to have a say on the third runway although it has been reported that this will be outside its remit.

"The commission can't be put together soon enough and item one on the list should be airport capacity and support for Davies and Heathrow," he said.   

And the commission can't be made up just of politicians, he added. "Politicians aren't well placed to take long-term strategic views on infrastructure because many projects are long-term and span electoral cycles.  So the composition of the commission will be very important.  It needs to be independent of government as only in that way we will get the long-term vision that the UK needs.  If that can be achieved then hopefully the formation of the Commission will mean the painful and expensive political enquiries we have seen will be consigned to the history books. 

"Where is the money to come from and who is to pay for it?  Money doesn't come for free and whilst there are many people out there willing to invest in the UK, they will want a return on their investment with a potential impact on fares, taxation, etc" - Richard Laudy, Pinsent Masons

"The idea of a commission was first mooted prior to the last election by Labour as a way of raising infrastructure above needs the political fray.  In the UK, the lifecycle of major project procurements – from power stations, to roads, to railways – has almost inevitably been longer than the electoral cycle.  

"The UK’s infrastructure has suffered as a result, in the stop-start nature of the decision-making processes for major projects. It has also introduced uncertainty into forward planning – whether for construction companies and investors that could be avoided. If the new Commission can help to mitigate against this and deliver some of the major imperatives of the National Infrastructure Plan, then this can only be a good thing. 

"Furthermore, there are still some tough decisions to be taken though.  The £5bn extra for infrastructure which the government has promised is very welcome but nothing like enough to tackle our infrastructure deficit, which has accumulated over years of under-investment by successive governments.  

Laudy wanted to know where the promised £5bn would come. "So this leads to the questions:  where is the money to come from and who is to pay for it?  Money doesn't come for free and whilst there are many people out there willing to invest in the UK, they will want a return on their investment with a potential impact on fares, taxation, etc," he said.  

"Both politicians and the Commission will have an important role to play in making the case for improvements in Britain's infrastructure, the benefits to the wider economy and the impact on the public."