Select Committee on Business and Enterprise Written Evidence


Memorandum submitted by HR Wallingford Ltd

1.  HR Wallingford is a research and development company operating in the area of impacts of the built environment on the natural environment, and vice versa, in terms of water. HR Wallingford has its roots in the Hydraulics Research Station, a laboratory of the Department of the Environment, privatised in 1982. We will focus on the aspect of research and innovation, leaving others to deal with other issues.

  2.  We are keen to be part of a world leading construction industry. However, at present we do not consider Britain to be a leader in terms of setting standards in construction process—that was what the Latham and Egan reports addressed, and what all the subsequent process initiatives are about. On the other hand, Britain is perceived to be a leader in artefact, largely due to imaginative design. As we travel the world it is the clear, innovative and holistic thinking of British engineers which is widely valued. This is especially true of those providing services into the infrastructure sector (energy, communications and transport, water—domestic agricultural and industrial, waste, societal protection and leisure). This position enables our consultants and contractors to generate considerable visible and invisible export earnings for Britain. But this position is maintained only because of the quality of the research and guidance which our research base provides. It is essential that government support for this research is enhanced and not reduced, to ensure that we remain at the forefront of developing technologies.

  3.  The contribution that the construction industry makes to the economy is considerable placing it amongst the key industrial contributors in Britain. However, the construction industry is structured very differently from almost all other industries, with very little vertical integration and considerable fragmentation. When construction was the responsibility of DETR, it was dealt with in a unique way, recognising the particular idiosyncrasies of construction. However, since adoption by DTI we see signs of construction being treated in just the same way as any other industry—as may be desired for reasons of fairness and transparency. This may lead to difficulties, with construction struggling to compare favourably with other industries based on the paradigms of those other industries. We are particularly concerned that construction may suffer with regard to research funding if `general' industry rules are made to apply. To improve construction performance, a more planned and strategic approach to research is necessary (as indicated by Fairclough). We ask you to consider construction as a special case, not because it cannot fairly compete with other industries, but because the nature and structure of the industry exhibit special characteristics for which a modified approach is probably necessary.

  4.  Within construction there are a considerable number of RTO's (Research and Technology Organisations) undertaking research, but perhaps more importantly, technology translation and transfer. We are such an organisation. Our perception is that the science and technology research drive of the present Government focuses unnecessarily closely on universities and university/industry linkages. This focus appears to work well in some industries, such as pharmaceutical and aeronautical for example, where the industry itself is research intensive and, through its vertical integration, benefits directly from research gains. This is not so clear in construction. Here the RTO's play a valuable role in bringing their own, and others, research findings to the construction industry. We believe that DTI should focus on the benefits arising from a greater encouragement (and funding) for RTO's to play an even more prominent role in research engagement with the deliverers of construction.

4 May 2007





 
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