Memorandum submitted by the Construction
Products Association
"FACING GLOBAL
CHALLENGES: SUPPORTING
PEOPLE THROUGH
DIFFICULT TIMES"
The Construction Products Association represents
the manufacturers and suppliers of products to the construction
industry. Through its major company and trade association members
it represents more than 85% of the £40 billion industry in
the UK.
Of the issues raised in the Call for Evidence
for this Inquiry, the Association would like to focus on implications
for environmental spending with particular reference to improvements
to the energy efficiency of the existing housing stock.
SUMMARY
— The additional £100 million
to improve the energy efficiency of existing housing is a fairly
modest amount, and it is disappointing that this focuses only
on insulation when much more could be achieved through a variety
of measures.
— Investing in improvements to the
existing stock will stimulate the construction industry while
at the same time helping the UK meet its carbon emission reduction
targets.
— The CERT scheme is not working as
effectively as it should.
— The government should reduce VAT
to 5% on all energy efficient products and energy saving products.
MAIN TEXT
1. The energy efficiency measures for housing
laid out in the Pre-budget Report are welcome and support what
the Association particularly asked for. However the additional
£100 million is a fairly modest amount given that 45% of
all present carbon emissions come from existing buildings, with
27% from homes. It is estimated that 87% of existing buildings
will still be here in 2050. Also it is disappointing the £100
million focuses only on insulation when much more could be achieved
with support for double glazing, upgrading of central heating
boilers and other energy saving measures.
2. The government must do more to improve
the energy efficiency of the existing stock both to stimulate
economic activity in the construction industry and to help meet
the UK's demanding 80% carbon reduction target. The need for action
as part of the climate change agenda has been reinforced by recent
reports from the CLG and BERR Select Committees and the Committee
on Climate Change, December 2008 report, `Building a Low-Carbon
Economy'.
3. The CERT scheme is not working as effectively
as it should and the targets set for the utilities are not feeding
through into meaningful action on the ground in the way that the
industry and those who should be benefiting from this initiative
would expect. One of our major companies that supplies these insulation
products reports that in October 70% of the applications from
elderly people seeking funding support for improving the insulation
in their homes were turned down because the energy companies had
already met their targets for that month. What seems to be happening
is that the energy suppliers are meeting their "targets"
in a range of different ways including offering advice on energy
efficiency (which may not be acted upon) and the unsolicited delivery
of energy efficiency light bulbs, which the recipients may not
use.
4. In addition we understand that announcements
made in September 2008 increasing the target funding for the CERT
scheme will not come through until May 2009 because they need
an Act of Parliament to approve them. Government urgently needs
to review the operation of this scheme both to ensure that in
the short term it is delivering the energy savings that are expected
of it, and to provide a longer term commitment to manufacturers
and installers to ensure they make the long term investment in
the products that are needed to insulate the existing housing
stock, as well as training those needed to install these products.
5. CERT, however, is only a small part of
what can be done to improve the energy efficiency of our housing
and ensure we meet our targets for carbon reduction. It makes
no sense to charge a lower rate of VAT on energy than the products
that will reduce the need for it, and Government should reduce
VAT to 5% on all energy efficient products and provide time-limited
funding support for those who wish to improve the energy efficiency
of their homes up to the current requirements of the building
regulations. This will particularly help SMEs in the industry
as they typically undertake this type of work.
13 January 2009
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