Contractors fear work hiatus during highway funding review

This morning prime minister David Cameron announced the launch of a joint HM Treasury/Department for Transport feasibility study to get more private sector funding into the trunk road and motorway network.

The announcement follows recent calls by the Civil Engineering Contractors Association (CECA) for the government to come forward with new models for private sector investment in public sector infrastructure. CECA believes that such investment can help to deliver upgrades to the transport and utility networks.

CECA therefore welcomed the government's decision to look at how best to leverage private investment to upgrade the strategic roads network. But it also voiced concern about the impact of any major structural change.

CECA director of external affairs Alasdair Reisner said: “The government has shown considerable commitment to improving the UK’s essential infrastructure, recognising that in doing so it will help kickstart recovery in the economy. We believe that this feasibility study offers the chance for sensible consideration of the options for private sector funding of road improvements.

“However experience from other sectors has shown that such major changes can lead to delays in the delivery of work programmes. We would have concerns about the impact on the roads network should there be any hiatus in activity as new models are implemented”.

Other industry groups were more supportive of the prime minister's initiative.

Noble Francis, economics director of the Construction Products Association, said:  "It is clear that we need to increase capacity on our roads as the World Economic Forum ranks the UK at only 26^th in the world for its quality of its road infrastructure. Private finance from sovereign wealth funds and pension funds could draw in vital funding to increase capacity on roads, providing a much needed improvement in the UK’s competitiveness and productivity.

"Adding new road capacity with new roads or additional lanes on existing major roads is essential for the long term economic growth of the country, but it is also equally important that the pricing structure is not to the detriment of business competitiveness." 

Association for Consultancy and Engineering chief executive Nelson Ogunshakin said: “Infrastructure is a catalyst for growth and ACE welcomes the announced study of ownership and financing models.  Our own research on infrastructure investment has recommended seeking greater private sector involvement in order to deliver the UK’s significant infrastructure needs and support the recovery from recession.

“While the regulated utilities can provide a useful model for the strategic road network, it is important to avoid the stop-start investment patterns that have occurred in the water industry since privatisation.

“If tolling is to be an option to fund new roads, we would emphasise the need to ensure that spatial planning and the necessary supporting legislation is in place.  A holistic review of the entire strategic road network is also required, to ensure that appropriate changes are implemented on existing corridors to secure a financially viable level of traffic on any new toll route.

“ACE is keen to see private investment for strategic roads secured as part of a broad-based vision for transport in the UK, including local roads, rail, aviation and maritime.  We look forward to working with the government and the Highways Agency to make the most of this opportunity.”

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