Memorandum submitted by ConstructionSkills (GJS19)
Introduction
ConstructionSkills is the Sector Skills Council for the
construction industry - a partnership between CITB-ConstructionSkills, the
Construction Industry Council and CITB Northern Ireland. It is UK-wide and
represents the whole industry from professional consultancies to major
contractors and SMEs. Established as a Sector Skills Council in 2003,
ConstructionSkills is working to deliver a safe, professional and fully
qualified construction workforce.
ConstructionSkills provides assistance in all aspects of recruiting,
training and qualifying the construction workforce across the UK. It works with partners in industry and
government to improve the competitiveness of the industry as a whole, representing
industry before Government to ensure it has fit-for-purpose qualifications,
training and funding.
CITB-ConstructionSkills is the construction industry's Industry Training
Board and has levy raising powers. It helps the industry in England, Scotland
and Wales in all aspects of recruiting, training and qualifying the
construction workforce, and supports this by providing CITB-ConstructionSkills
Grant.
ConstructionSkills
has a leading role in:
§ Providing
sector skills intelligence
§ Defining the
skills strategy for the sector, including a sector qualifications strategy
§ Increasing
employer engagement in skills and training
§ Providing skills
and training brokerage
§ Facilitating
and leading skills and training delivery
General
§ The construction industry makes a
major contribution in helping the UK and the economy to achieve a more
sustainable future - by ensuring that what is built, how it is built and where,
makes best use of sustainable technologies and low and zero carbon. (paragraph
1.3)
Developing the skills base
§ To increase employment
opportunities, while at the same time increasing productivity, there is a need for micro-businesses, which constitute the vast majority in the
construction sector, to be able to take advantage of the growing market around
Government's 'green' policy and investment. Annual spend has been projected to
be between £3.5 - £6Bn per annum - a sum which would provide significant
opportunities to a wide range of companies and could create a number of new
jobs. (para 4.1)
§ In order to establish consistency,
quality and build market confidence, the underlying skills and qualification
structure needs to be examined - from entry through to high level - to ensure that the skills are backed by
qualifications and, where necessary, accreditation and/or certification. We
believe it is critical that there is industry involvement in this process. (paras 4.2-4.3)
§ It is critical that businesses,
across the construction and built environment supply chain, are supported, as
appropriate, in relation to people development - this support may be in the
form of advice, training and the time and financial resources required. The
built environment Sector Skills Councils are well placed to support this. (para
4.5)
§ In order to sustain the developing
'green' market, an 'education' programme aimed at the total population is
needed, to increase understanding of
the issues and of the benefits of environmental change and develop continued
'effective demand'. (para 4.6)
§ Currently issues relating to skills,
and environmental skills in particular, are being handled by up to seven
different government departments. A strategic approach to meeting skills
challenges is needed, with Government and industry working together across the
emerging environment opportunities in the construction and built environment
sectors. (para 4.8)
§ In order to maximise opportunities
the construction industry will need to develop not only its technical
capability but to interface with other sectors, for example energy producers,
and their supply chains. This could
mean a significant shift in the skills and competence of the existing industry
as part of a major process of innovation.
(para 4.10)
§ Application of the range of 'green'
technologies will require the industry to advise on and install appropriate
solutions across a range of markets. Failure of these product innovations, due
to them being installed in inappropriate situations or a lack of expertise,
could result in a downturn across the whole sector. (para 4.11)
§ SSCs will also need to play a key
part in ensuring that businesses can access high quality diagnostic services to
help them create their own strategies for meeting their needs for
sustainability skills. This work is
already in hand. (para 4.12)
§
Construction and the built environment is a grouping of many sub-sectors. The
key construction and built environment sector skills councils agreed in 2007/8
that the best way forward in the development of the requisite skills is to
ensure that there is cross sector working. The Built Environment Skills
Alliance (BESA), which is an alliance of Sector Skills Councils, could lend
support here. (para 4.14)
§ When the 14-19 budget, currently held by the Learning and
Skills Council, moves to local authorities it it is essential that LAs work
with SCCs to maximise both employment and training opportunities. (para 4.18)
§ The £100 million extra to improve
the insulation for 150,000 homes in the social sector is likely to be the
province of SMEs. There is a need to ensure that those tasked with this
activity understand the skills issues around ensuring airflow and the variety
of building that they may come across. (para 4.19)
§ There is an opportunity to apply the
multiplyer effect here. Many more jobs could be created in the private market
if these often small and micro businesses amass the skills to be credible
'energy advisors'. This is an area where there may be anidentifiable need for
some form of development resource. (para 4.20)
§ It is reassuring that Government has
recognized, in BERR's Low Carbon
Strategy: an Industry Vision, the need for a new industrial activism that
brings together different strands of government policy to ensure low carbon
companies have access to the infrastructure, skilled workers, research and
development and investment opportunities they need. ConstructionSkills believes
this is the way to achieve both job creation and low carbon ambitions. (paras 4.21-4.23)
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1
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Overview
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1.1.
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ConstructionSkills believes that the 'green'
incentives in the 2009 Budget can provide a positive stimulus for carbon
reduction. As a Sector Skills Council we are acutely aware that appropriate
skills and capacity will be required to achieve this. Our response
specifically focuses on the skills related items listed within the Inquiry
document. We have interpreted 'UK environmental industries' in the broadest
sense and related this to the 'nature of the jobs that might be created in
green industries'.
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1.2
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47% of all UK carbon emissions are as a result of
the activities of the construction industry. 27% of all emissions arise from
the existing 26 million homes, 7% of all emissions are from existing offices
and 13% of all emissions are as a result of the manufacturing of construction
materials and the construction process. The construction industry is also the
single largest producer of waste in the UK. It is worth noting that between
1990 and 2005 carbon emissions reduced in the existing housing stock by just 4%
despite the significant investment in cavity wall and loft insulation over
that period.
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1.3
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The construction industry makes a major
contribution in helping the UK and the economy to achieve a more sustainable
future - by ensuring that what is built, how it is built and where, makes
best use of sustainable technologies and low and zero carbon.
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1.4
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For clarity, a summary of the construction industry
and the types of activities it carries out, in relation to general
construction and environmental impact, is noted in Appendix A.
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2.
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ConstructionSkills'
Responses
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2.1
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Clarifying the terminology
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Wikipedia defines green employment as 'a worker who
is employed in the environmental sectors of the economy. Environmental
green-collar workers (or Green Jobs) satisfy the demand for green
development. Generally, they implement environmentally conscious design,
policy and technology to improve conservation and sustainability'.
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2.2
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Whilst this is one definition it is
clear that the terms 'green jobs' and 'green industries' create some
confusion within the business community. As with 'environmental skills' and
environmental industries' this is open to misinterpretation, as a number of
relevant jobs already exist in the construction industry in areas such as
insulation. In order to maximise employment and employer engagement it will
be necessary to 'translate' these terms into language that business
understands - Sector Skills Councils have a part to play here.
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2.3
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Green industries can be seen as those where the
'green' element is the sector's main area of operation, rather than a
sub-sector of wider business activity. Increasingly, in parts of the
construction sector, this is becoming part of the way 'we do business'.
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2.4
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It is also
important that the Government/Industry Sustainable Construction Strategy
moves to a position, over time, where the word 'Sustainable' is no longer
needed as all construction will be conducted in this way.
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3.
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Inquiry
issue: The nature of the jobs that might be created in green industries as a
result of the green fiscal stimulus
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3.1
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As BERR's Low
Carbon Strategy: an Industry Vision points out, seemingly unconnected
sectors such as groundwork can benefit from the move to a low carbon economy.
For example, one firm switched from advising on bore holes to take 'advantage
of a new low carbon opportunity to become specialists in the installation of
Ground Source Heat Pumps'. Such firms could be the tip of the iceberg.
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3.2
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What is certain is that the 'nature of the jobs
that might be created in green industries as a result of the 'green fiscal
stimulus' will be part of a dynamic process of change, which needs to be
understood more clearly.
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4.
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Inquiry
issue: The skills base for the UK environmental industries, and the
effectiveness of Government policies to improve and enlarge it
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4.1
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To deliver the low carbon future we need to avoid
relying solely on 'leading edge' companies. To increase employment
opportunities, while at the same time increasing productivity, there is
a need for micro-businesses, which constitute the vast majority in the
construction sector, to be able to take advantage of the growing market
around Government's 'green' policy and investment. Annual spend has been
projected to be between £3.5-£6Bn per annum - a sum which would provide
significant opportunities to a wide range of companies and could create a
number of new jobs.
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4.2
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In order to establish consistency, quality and
build market confidence, the underlying skills and qualification structure
needs to be examined - from entry through to high level - to ensure that the
skills are backed by qualifications and, where necessary, accreditation
and/or certification.
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4.3
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DECC's Heat and Energy Saving Strategy consultation
recognises the need to build capacity and skills to provide the new
approaches to energy. We believe it is critical that there is industry
involvement in this process.
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4.4
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New jobs created in environmental markets will not
all require totally new skills, but will often be an addition to existing
workers skill-sets. As this market develops it is likely that a significant
number of the existing workforce will move into specialist environmental
niches. This transfer would 'free up' jobs in the traditional sector and help
to create wider opportunities for new entrants to the sector.
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4.5
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As markets develop, companies - and especially
small and micro businesses - will need to gain the leadership and
entrepreneurial confidence and competence to discuss green issues with
clients such as individual homeowners. It is critical that businesses, across
the construction and built environment supply chain, are supported, as
appropriate, in relation to people development - this support may be in the
form of advice, training and the time and financial resources required. The
built environment Sector Skills Councils are well placed to support this.
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4.6
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In order to sustain the developing 'green' market,
an 'education' programme aimed at the total population is needed, to increase
understanding of the issues and of the benefits of environmental change and to
develop continued 'effective demand'.
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4.7
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Without the 'skills activism' proactive approach to
skills investment, the skills to deal with what could be seen as a slowly
evolving market may not be developed. Employers, governmental and individual
skills investment decisions are tied to a foreseeable need for these skills.
A sustained policy direction is essential, if employers and training
providers are to invest in these opportunities. If the recession is seen to
turn back Government's ambition in the area of sustainable development and
communities, this could severely dent companies' plans and ambitions.
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4.8
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Currently, issues relating to skills, and
environmental skills in particular, are being handled by up to seven
different government departments. A strategic approach to meeting skills
challenges is needed, with Government and industry working together across
the emerging environment opportunities in the construction and built
environment sectors. Co-ordination is
needed across Government departments and greater consistency in policy -
linked, where appropriate, to elements of public funding for people
development to complement that invested by companies and the sector as a
whole.
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4.9
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Innovation
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At a DIUS co-ordinated workshop in June 2008 at
Windsor Castle on the 'Skills for Sustainability' it was noted that: 'The
more businesses come to see skills and innovation and sustainability as one
single cluster of issues, the easier it will be for them to embrace the
sustainability agenda - not as an add-on but as a central part of their whole
upskilling effort'.
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4.10
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In order to maximise opportunities the construction
industry will need to develop not only its technical capability but to
interface with other sectors, for example energy producers, and their supply
chains. This could mean a significant shift in the skills and competence of
the existing industry as part of a major process of innovation.
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4.11
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We must avoid the temptation to create jobs at the
expense of innovation and productivity improvements in the burgeoning
markets, as this can be counter productive in the medium to longer term.
Application of the range of 'green' technologies will require the industry to
advise on and install appropriate solutions across a range of markets.
Failure of these product innovations, due to them being installed in
inappropriate situations or a lack of expertise, could result in a downturn
across the whole sector, as happened in the UK in the 1970s with timber frame
housing.
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4.12
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The Windsor workshop found that 'SSCs will also
need to play a key part in ensuring that businesses can access high quality
diagnostic services to help them create their own strategies for meeting
their needs for sustainability skills'.
This work is already in hand as noted above.
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4.13
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In April 2009, ConstructionSkills - recognising the
need for innovation, skills and sustainability to be part of an iterative
continuum - set up its Future Skills Unit which will seek to provide the best
advice, support and encouragement for industry as 'sustainability' moves
incrementally into the industry mainstream.
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4.14
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Encouraging collaboration - the role of the Sector
Skills Councils
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Construction and the built environment is often
seen as a single sector, in fact it is a grouping of many, often loosely
related, sub-sectors. This means the market opportunities stemming from
'green' investment, be it public or private, will vary. The key construction and built environment
Sector Skills Councils agreed in 2007/8 that the best way forward in the
development of the requisite skills is to ensure that there is cross sector
working. The Built Environment Skills Alliance (BESA), which is an alliance
of Sector Skills Councils, could lend support here.
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4.15
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The range of renewable energy sources and
technologies is diverse and complex spanning a number of Sector Skills
Councils and sector bodies. Recognising the need for collaborative working,
the respective Chief Executives[1]
have agreed a shared commitment to create a Renewable Energy Skills Strategy.
Working in this way fully utilises the sector specific knowledge and
experience, whilst at the same time providing a single skills interface for
environmental issues
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4.16
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This skills strategy will 'provide a better
understanding of the future skills requirements, the increased training
capacity required and the nature and timescales of job opportunities in the
environmental sector, whilst recognising the specific nature of some of the
job requirements in each of the sectors'.
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4.17
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A response to the Inquiry on behalf of this group
has been submitted and will not be covered in detail here.
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4.18
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Working with Local Authorities
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The fiscal stimulus gives around £100 million for
local authorities to deliver housing to 'higher energy efficiency standards'.
Whilst what the standards will be has not defined, the LGA report Creating green jobs: developing local
low-carbon economies states that local authorities 'want to work 'with
employers and employment and skills providers to ensure that skills gaps are
identified and new training opportunities provided including public sector
apprenticeships'. When the 14-19
budget, currently held by the Learning and Skills Council, moves to
local authorities it is essential that they work with SCCs to maximise both
employment and training opportunities.
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4.19
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Improving domestic scale insulation
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The £100 million extra to improve the insulation
for 150,000 homes in the social sector is likely to be the province of
smaller firms in the construction sector. There is a need to ensure that
those tasked with this activity understand the skills issues around ensuring
airflow and the variety of building that they may come across.
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4.20
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However there is an opportunity to apply the
multiplyer effect here. Many more jobs could be created in the private market
if these, often small and micro business amass the skills to be credible
'energy advisors'. This is an area where there may be a identifiable need for
some form of development resource.
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4.21
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Supporting low carbon companies
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It is
reassuring that Government has recognised in BERR's Low Carbon Strategy: an Industry Vision that: "Despite the clear
economic case for undertaking energy efficiency measures, lack of information
and lack of finance - especially in the current economic climate - can
prevent businesses from taking them up'. These financial and information
issues need to be addressed.
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4.22
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As mentioned above, the fiscal stimulus offers the
potential of creating new jobs and at the same time upskilling many others.
There is a potential multiplyer in the construction and built environment
sector, and this requires many more micro firms to develop.
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4.23
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The BERR report also states: 'we must also think
about how we best equip UK businesses and workers to compete for these
opportunities. We need a new industrial activism that brings together
different strands of government policy to ensure low carbon companies have
access to the infrastructure, skilled workers, research and development and
investment opportunities they need'.
ConstructionSkills believes this is the way to achieve both job
creation and low carbon ambitions.
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23 May 2009
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Appendix A - Environmental Continuum
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[1] AssetSkills, Cogent, ConstructionSkills, ECITB, EU
Skills, Lantra, SEMTA and SummitSkills
