Select Committee on Public Accounts Minutes of Evidence



  At the Committee's hearing on 14 February I made reference Q50 to the Construction Industry's level of margin and its ability to invest in training and R&D. On subsequent rereading of the 1998 Egan Report—Rethinking Construction, I realise that no specific level of margin is mentioned. However page 10, para 4 of the Egan Report does include the following statement about the Construction Industry:

    "It has a low and unreliable rate of profitability. Margins are characteristically very low. The view of the Task Force is that these are too low to sustain healthy development and we wish to see those companies who serve their clients well making better returns."

  I believe this supports the point I was making to the Committee.

  I hope the Committee will accept my apologies for not making this clear at the hearing.

Chief Executive
Office of Government Commerce

19 March 2001

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