May 16, 2020

Five reasons why the construction industry should welcome the Scottish independence No vote

uk construction
Barbour ABI
Residential construction
Residential construction
Admin
3 min
Five reasons why the construction industry should welcome the Scottish independence No vote
When the result of the Scottish Indepencence Referendum became clear early on Friday morning, many in the construction industry breathed a sigh of relie...

When the result of the Scottish Indepencence Referendum became clear early on Friday morning, many in the construction industry breathed a sigh of relief. The feeling was that a breakup of the United Kingdom would have had several negative consequences, at least in the short term, for the sector. Here are just five reasons why construction should welcome the 'No' vote.

Market uncertainty

At a time when the economy finally seems to have turned a corner, and construction is performing well, (in August, the UK’s construction output was at its highest level for seven months), the uncertainty in the market created by the many unknowns of independence would be unwelcome.

The industry would be hit by a nervousness to invest in a country that faces an uncertain future, and in which questions over currency and EU membership remained unanswered right up to polling day.

Housing

The housing market was a key area of concern for those opposed to independence. The property website Zoopla claimed a Yes vote could have wiped £31,000 from the average Scottish house price, with the relocation of businesses south of the border seeing a flood of homes coming on the market at once, and driving down prices.

Zoopla said independence would make it harder to get a mortgage, with fewer lenders operating in Scotland, increasing rates, and therefore less new builds.

The UK government’s ‘Help to Buy’ scheme would also likely have been lost. As one of the key drivers of the housing boom, and a major factor in the construction sector’s resurgence post-financial crisis, losing the scheme could have undone much of the progress made.

Oil and gas

Voices from the oil and gas industry came out in favour of the union, claiming that uncertainty in the event of a ‘Yes’ vote would have affected investment, development and production.

David Edwards, Chief Executive of England-based OGN Group, a provider of oil and gas engineering and construction services, released a statement on the subject, in which he said: “Uncertainty has always been one of the biggest threats to a successful UK oil & gas industry. Investment could grind to a halt while tax, decommissioning, legal and boundary issues are debated, which will not only impact on the potential tax revenues, but also lead to a slowdown on projects that will affect jobs in the wider supply chain.

“The oil & gas sector is a UK wide industry and creating a new border will transform inter-union trade into international transactions, which will increase costs to Scottish industry at a time when exploration and recovery of the remaining resources is already becoming more expensive.”

Labour costs

In the event of a 'Yes' vote, the Scottish government had proposed a rise in the minimum wage in line with inflation each year, something that is not set to happen south of the border. This proposal, though good news for workers, would have hit construction companies by raising labour costs, and made Scotland a less attractive place to work.

The pipeline

Construction intelligence specialist Barbour ABI produced a report on the effect of independence on Scotland’s future pipeline of work, which is worth more than £38bn.

Of that figure, 21 percent, some £8bn, is proposed by companies based elsewhere, with the majority in other UK countries.

Barbour claimed that uncertainty over whether Scotland would continue to use the pound, as favoured by its First Minister, or be forced to adopt another currency, (the more likely outcome), may have led these companies to cancel or defer their Scottish projects.

The report said that as Scotland is represented strongly in sectors under the public sector’s influence, and that break-up negotiations would likely be long and complex, these public sector contracts were at risk.

Add to this the significant number of projects in the renewable energy sector, and the potential loss of UK government subsidies to such work, and it seems even more of a relief to the construction sector that a ‘No’ vote was the outcome of the referendum.

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Jul 29, 2021

Environment Agency clamps down on plastic films and wraps

Environment
construction
plastic
Recycling
Dominic Ellis
3 min
Environment Agency aware of plastic film and wrap from the construction and demolition sector being illegally exported

Businesses in the waste and construction industries must ensure they deal with waste plastic properly to stop illegal exports, the Environment Agency (EA) has warned. 

The warning comes as the Agency is increasingly aware of plastic film and wrap from the construction and demolition sector being illegally exported. 

Exports are frequently being classified as ‘green list’ waste of low risk to the environment, but are often contaminated with materials such as mud, sand, bricks and woodposing a risk to the environment and human health overseas, and undermining legitimate businesses in the UK seeking to recover such waste properly.

During the last year, the EA has intercepted shipments to prevent the illegal export of this material on numerous occasions. The Agency inspected 1,889 containers at English ports and stopped 463 being illegally exported. This, combined with regulatory intervention upstream at sites, prevented the illegal export of nearly 23,000 tonnes of waste.

Those convicted of illegally exporting waste face an unlimited fine and a two-year jail sentence. But construction firms could also face enforcement action if contaminated construction and demolition waste plastic is illegally exported.

Malcolm Lythgo, Head of Waste Regulation at the Environment Agency, said it is seeing a marked increase in the number of highly contaminated plastic film and wrap shipments from the construction and demolition industry being stopped by officers.

“I would strongly urge businesses to observe their legal responsibility to ensure waste is processed appropriately, so we can protect human health and the environment now and for future generations. It’s not enough just to give your waste to someone else - even a registered carrier. You need to know where your waste will ultimately end up to know it’s been handled properly. We want to work constructively with those in the construction and waste sectors so they can operate compliantly, but we will not hesitate to clamp down on those who show disregard for the environment and the law.”

There are a number of simple, practical steps that businesses can take to ensure that C&D site waste is handled legally.

Construction businesses should check what’s in their waste

  • Different waste types need different treatments and so must be correctly categorised to ensure it goes to a site that is authorised to handle it safely. Businesses can also check if their waste is hazardous as different rules might apply.
  • If you are removing the waste yourself, you must be a registered waste carrier- registration can be carried out here. When a waste collector is transporting your site waste, you must check they have a waste carrier’s licence from the EA.
  • You must also check that the end destination site any waste is taken to is permitted to accept it and has the right authorisations in place. Keep a record of any waste that leaves your site by completing a waste transfer note or a consignment note for hazardous waste which record what and how much waste you have handed over and where it is going.

Waste management industry must adhere to export controls

  • Contaminated C&D waste plastic - including low-density polyethylene (LDPE) wrap and film - must be exported with prior consent from the EA as well as competent authorities in transit and destination countries.
  • Those involved in the export of such waste must ensure that it meets the requirements set under the relevant export controls, such as being almost free-from contamination; the destination sites are appropriately licensed to receive and treat the waste; and waste is correctly managed once received.

The EA will continue to actively target those who export contaminated C&D plastic waste illegally, including any accredited packaging exporters who issue Packaging Waste Export Recovery Notes (PERNs) against such material in breach of their Conditions of Accreditation.

Businesses involved in the shipment of waste are required to take all necessary steps to ensure the waste they ship is managed in an environmentally sound manner throughout its shipment and during its recycling.

Anyone with information regarding the illegal export of waste including C&D waste plastics can contact the EA’s Illegal Waste Exports team at: [email protected] or anonymously via Crimestoppers on 0800 555 111 or via their website 

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