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Funding squeeze over new CIEC
00:00 09 Feb 1995
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Last week's compromise over the future of trade association
representation - which, thanks to Sir Michael Latham's brokerage,
saw Newco ditched in favour of a beefed-up CIEC - faces a critical
funding crunch.
All five potential affiliates to the new body must find œ50,000 each to support the estimated œ250,000 annual running costs of a high-calibre central secretariat.
The cost pressure will be intensified by further funding requirements for the new Construction Industry Board, announced by Environment Minister John Gummer this week to implement the Latham Report. CIEC's share of the industry contribution will be œ20,000, and there are reports that this is already proving a problem for CIEC, although one close observer said this week: 'It would just be too embarrassing at this stage to say no.'
The money required for the new CIEC - which adds the top 11 contractors (Group 11) to the existing CIEC membership - may prove more troublesome. However much they are in favour of stronger industry representation, the Federation of Master Builders, the BEC, and the FCEC are already under funding pressures and members will need to have the full benefits of the new CIEC fully explained to win their support.
The œ75,000-plus spent on the now redundant PA Group report will be seen by many as an expensive mistake, despite the fresh assurances of its value by those who commissioned it.
On this basis, it is too soon to say officially that the new representative body will now automatically come into existence. Crucial council meetings at all CIEC constituents lie ahead, with the Building Materials Producer's not until 5 April.
In the absence of an official reaction, speculation is focusing on future BEC/FCEC working operations.
A major thrust of the PA report - encouraged by the G11 group - was for a merger of these two organisations, or at the very least 'elimination of wasteful duplication of effort and resources'.
The FCEC always maintained there was very little, if any, overlap - and the collapse of the Newco plan appears to vindicate that stance.
All five potential affiliates to the new body must find œ50,000 each to support the estimated œ250,000 annual running costs of a high-calibre central secretariat.
The cost pressure will be intensified by further funding requirements for the new Construction Industry Board, announced by Environment Minister John Gummer this week to implement the Latham Report. CIEC's share of the industry contribution will be œ20,000, and there are reports that this is already proving a problem for CIEC, although one close observer said this week: 'It would just be too embarrassing at this stage to say no.'
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The money required for the new CIEC - which adds the top 11 contractors (Group 11) to the existing CIEC membership - may prove more troublesome. However much they are in favour of stronger industry representation, the Federation of Master Builders, the BEC, and the FCEC are already under funding pressures and members will need to have the full benefits of the new CIEC fully explained to win their support.
The œ75,000-plus spent on the now redundant PA Group report will be seen by many as an expensive mistake, despite the fresh assurances of its value by those who commissioned it.
On this basis, it is too soon to say officially that the new representative body will now automatically come into existence. Crucial council meetings at all CIEC constituents lie ahead, with the Building Materials Producer's not until 5 April.
In the absence of an official reaction, speculation is focusing on future BEC/FCEC working operations.
A major thrust of the PA report - encouraged by the G11 group - was for a merger of these two organisations, or at the very least 'elimination of wasteful duplication of effort and resources'.
The FCEC always maintained there was very little, if any, overlap - and the collapse of the Newco plan appears to vindicate that stance.
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