Energy and Climate Change CommitteeWritten Evidence Submitted by the Civil Engineering Contractors Association (ISG 08)

The Civil Engineering Contractors Association (CECA) welcomes the opportunity to respond to the above named call for evidence. CECA is the representative body for companies who work day-to-day to deliver, upgrade, and maintain the UK’s infrastructure.

With more than 300 members throughout England, Scotland and Wales, CECA represents firms who together carry out 80% of all civil engineering activity in the UK, in the key sectors of transport, energy, communications, waste and water.1

Our members include some of the largest construction firms as well as a range of small specialist and regional contractors. Our industry supports the employment of over 200,000 people in the UK with annual activity worth £25 billion.

In submitting our response we have focused on areas where we believe we can add value. We trust that you will find our comments helpful and that they will be taken into consideration.

In August 2012 CECA published Infrastructure: The Routemap for Growth.2 This document, written in close consultation with our members, sets out a series of key recommendations to ensure the UK remains an attractive place to do business.

The majority of recommendations in this policy document are based on our sector-specific work, of which, energy, is key.

The beginning of this century saw increased concerns over the prospect of an energy shortage. Many nuclear and coal power stations are coming to the end of their lives and are likely to be decommissioned after 2017. Substantial investment is needed to replace them.

For this reason, CECA recommends:

Commitment to a long-term U.K. energy policy which does not deter badly needed investment.

Maintained focus on policies to ensure the first new nuclear power stations in England and Wales begin generating electricity from 2020.

Close scrutiny of the UK Renewable Energy Roadmap to ensure the 2020 target is met.

Effective management of shale gas extraction through the implementation of operational best practice, robustly enforced through regulation.

CECA has been closely monitoring the debate surrounding shale gas extraction both in the UK and abroad. While not a universal panacea to meeting future energy demand, we believe that shale gas extraction does have a role to play in meeting our energy needs.

Hydraulic fracturing is not completely risk-free, but we believe it can be managed effectively in the UK as long as operational best practices are implemented and robustly enforced through regulation.

CECA agrees with the conclusions of the recent review on hydraulic fracturing published by the Royal Society and the Royal Academy of Engineering.3

October 2012

1 CECA has a number of members based in Northern Ireland but, in agreement with the Construction Employers Federation Northern Ireland, does not comment on political or client matters there.

2 Infrastructure: the Routemap for Growth is freely available to download at: http://www.ceca.co.uk/media/87989/ceca_-_infrastructure_the_routemap_for_growth.pdf.

3 Fracking can be undertaken safely if best practice and effective regulation are enforced, June 2012: http://www.raeng.org.uk/news/releases/shownews.htm?NewsID=771.

Prepared 25th April 2013