SEC Group Meets with Shadow Trade And Industry Team

The Specialist Engineering Contractors (SEC) Group recently met with various members of the Shadow cabinet to discuss a variety of issues affecting the sector's competitiveness.

Shadow Trade and Industry Secretary Tim Yeo attended the meeting, along with Shadow Construction Minister Henry Bellingham, and both accepted that much could be done to improve the competitive of UK construction businesses.

The proposed Agency Workers' Directive came under scrutiny, with SEC Group citing it as an initiative that would only result in a massive increase in costs for firms in the construction sector - who are heavily reliant on agency workers and would be crippled by having to provide the same terms and conditions to them as to their permanent employees.

SEC Group suggested that firms should have a breathing space – a qualifying period of 12 months – before the equal pay entitlement kicked in, but Mr Bellingham stated that even with widespread support, the maximum achievable was likely to be nearer six months.

There was also an acceptance by everyone, in principle, of the need to promote the need for qualification of firms, but a relatively inexpensive and non-bureaucratic means for recognising acceptable qualification scheme would need to be put in place.

It was generally acknowledged that the reduction of VAT on repair, maintenance and improvement works was necessary to tackle the black economy.

Through the Engineering Employers Federation, SEC Group has already made a plea to the Chancellor to reduce VAT to 5% on such work, and want to see Gordon Brown challenged on this issue after the budget, if the issue is not address.

(CL)