Lord Deighton: National Infrastructure Plan 2014
Lord Deighton spoke to conference delegates about infrastructure in the UK.
I came into government two years ago to help this country build the infrastructure we need. It clearly can바카라 사이트™t have been an accident that we had Isambard Kingdom Brunel 바카라 사이트“ as portrayed by Kenneth Branagh 바카라 사이트“ as one of the stars in that spectacular first scene in the Olympic Opening Ceremony.
My mandate from the PM and Chancellor was 3-fold: 바카라 사이트śDelivery, delivery, delivery.바카라 사이트ť
You can바카라 사이트™t have a successful 21st century economy without 21st century infrastructure.
Infrastructure is vital to improving the productivity of this country 바카라 사이트“ and it is at the heart of ensuring the UK바카라 사이트™s long-term economic competitiveness.
Successive governments chronically underinvested in infrastructure for decades. And the approach to driving project delivery was simply not dynamic.
We바카라 사이트™re turning all this around. Our level of investment in infrastructure is now at an annual average of ÂŁ47 billion a year 바카라 사이트“ up by 15% in only four years.
That would be an important sum at any time. Against the backdrop of a domestic economy recovering from financial crisis, a challenging international economic environment, and the record deficit we inherited, it is remarkable.
My job is to transform and modernise how we plan and deliver our infrastructure 바카라 사이트“ injecting some private-sector dynamism into the system.
That means getting major projects built on time and on budget.
It means providing certainty to businesses about opportunities ahead.
It means reducing the long-term cost of delivery.
And it means providing the right environment for building and investment to continue over the decades ahead.
All of this is good for the industry 바카라 사이트“ and good for the nation.
In 2010, one of our first actions as a government was putting together a National Infrastructure Plan, based on an infrastructure pipeline 바카라 사이트“ setting out exactly what we want to build and when we want to build it, and committing ourselves to getting those projects delivered.
And every year we have updated and expanded the Plan.
We can all see the progress. Last year 45% of all projects in the pipeline were in construction or part of an active programme. This year it바카라 사이트™s over 60%.
And there have been some real, headline successes since 2010.
55 major roads and local transport projects completed.
Diggers on the ground for transformational projects such as the Mersey Gateway and the Northern Hub.
Crossrail, the biggest construction project in Europe, on time and on budget.
Improvements to 400 railway stations, including the completion of Kings Cross.
Enough new electricity generation capacity created to power 23 million homes.
We바카라 사이트™ve seen leaps forward for HS2 and Hinkley Point C.
We바카라 사이트™ve seen development consent granted for the Thames Tideway tunnel 바카라 사이트“ which will provide a significant boost to jobs and benefit both the environment and the economy.
Britain is building its way to prosperity. And that progress couldn바카라 사이트™t have happened had we not focussed on how we deliver these projects.
We knew that as a business, you don바카라 사이트™t plan capital projects for one year ahead; you plan for at least five, and often longer.
So we put in place reforms allowing us to commit to long-term capital settlements. Not: 바카라 사이트śwhat do we have money to do next year바카라 사이트ť but 바카라 사이트śwhat do we have money to do through to 2020?바카라 사이트ť All this is based on a clear sector by sector strategy.
We did that last year for roads and for flood defences 바카라 사이트“ and this year we are providing fuller details on how that money will be spent.
Improving pipeline visibility and certainty is of course vital. Focussing on key investments through our 바카라 사이트śTop 40 priorities바카라 사이트ť has allowed us all to concentrate our resources on the most important projects.
But what바카라 사이트™s equally important, I know, is for the planning regime to work effectively.
We바카라 사이트™ve reduced red tape and introduced the National Planning Policy Framework to make it easier for sustainable projects to get the necessary permissions to get started. The streamlined application process for our biggest projects is working well, with 97% of decisions being made on time, and we바카라 사이트™re speeding up the judicial review process too.
And today, I can announce that we will be publishing a consultation paper at the next Budget to streamline and update the Compulsory Purchase Regime, to make it clearer, faster and fairer.
바카라 사이트śCertainty바카라 사이트ť is a word I keep coming back to. Because certainty 바카라 사이트“ whether on timings or on future demands 바카라 사이트“ is vital to keeping costs down.
In 2010, we launched the Infrastructure Cost Review, to examine how to reduce the costs of delivery. I am delighted that government and industry have worked together to reduce the costs of delivering infrastructure by around 15%.
This is a fantastic achievement.
It means that we can afford to put more on the shopping list.
And it means that your businesses are leaner, smarter, fitter 바카라 사이트“ improving your ability to compete worldwide.
Another example of how the work we are doing is good for the industry and good for the nation.
I am personally very proud that we are reversing the tide of underinvestment.
But 바카라 사이트“ unsurprisingly 바카라 사이트“ I think there바카라 사이트™s more we should be doing.
We need to address the challenge of having enough skilled people to deliver projects across sectors. This is a challenge I바카라 사이트™m throwing down to industry.
Modelling of the infrastructure pipeline suggests that the unprecedented increase in investment will in turn create a surge in demand for infrastructure jobs.
The figure we바카라 사이트™re working to is over 10% by 2019. And for some specialised skills, the number is much higher.
In October, here at ICE, I launched the IUK and Infrastructure Client Group work programme 바카라 사이트“ which is focussed on getting to grips with this significant challenge.
This government is already investing in the skills needed to deliver the pipeline.
We have a new ÂŁ30 million fund seeking to boost the supply of engineers, especially female engineers.
In addition to existing colleges, catapults and the National College for High Speed Rail, we바카라 사이트™re working up plans for new centres for Nuclear and Shale. And we will shortly be setting out more details about this extension to our National Colleges Programme.
But government can바카라 사이트™t do it all by itself.
Crossrail and the Olympics recently exceeded its target of hiring 400 apprentices.
We want to incentivise a step-change across industry in the levels of investment in skills, for instance through setting clear and consistent objectives in procurement.
But industry must also now build on the certainty 바카라 사이트“ that word again 바카라 사이트“ provided by our infrastructure pipeline, and respond with greater confidence, through increased investment in the skills and innovation needed to deliver it.
So 바카라 사이트“ in summary 바카라 사이트“ we바카라 사이트™ve got infrastructure embedded at the top of our economic priorities.
And we have a detailed plan, updated and improved every year, for all the sectors, backed by a clear financing plan, using public money and the private markets supported by targeted interventions like the UK Guarantee Scheme.
All reinforced by constant improvements to our delivery capability whether through streamlining planning, investing in skills or upgrading the capability of government agencies.
We바카라 사이트™re committed to seeing this through and thank you for your support.