Industry calls for swift PM contest

The political uncertainty caused by the Conservative party leadership contest will be a further set back to hopes of a boost to public spending but could give a much required filip to the housing market, industry chiefs said this week.

A spending and policy hiatus is expected while the battle for supremacy rages which will further diminish construction-related pub- lic spending. But John Redwood's pledge to boost housing has made it a key issue in the debate.

On the whole industry chiefs contacted by CJ back John Major to remain as Prime Minister but with reservations about both his role and his decision to force the leadership contest.

Galliford md George Marsh said he admired Major for what he hasdone but is critical of the Conservative party leadership for not having done a better job of promoting the benefits of infrastructure.

And Jarvis chief executive Paris Moayedi said: 'Hopefully the boil will be lanced after this election. Either way, we should get a leadership which offers more incentives for home ownership, the backbone of public confidence - if Major gets back in he will have to buckle down and be more generous in this respect.'

Beazer Homes md Dennis Webb also thought that whatever happens the contest should bring housing to the fore: 'That can only be good for the housing industry.'

Rudi Klein, for the specialist contractors, said he feared a drift to the right could affect legislation on Latham.

'Redwood or Portillo, for example, are very much free marketeers,' he said. 'They do not believe in intervention in the market. The Majorites, on the other hand, do recognise that there is a role for intervention to improve commercial practice.'

Others expressed concern about the effect of the contest on the industry. Norwest Holst chief executive John Stanion said: 'The right wing wants low taxation - that means public spending will stay under firm control and that is not good for construction.

'If there is a new leader we can expect a reshuffle but I can't see a change in policy on spending. And the disruption will mean a further hiatus in decision making and spending.'

The concern over the situation was reflected by Taylor Woodrow group chief executive Tony Palmer who said: 'Political uncertainty is never particularly desirable and so I look forward to a swift contest which will settle matters.'

Mansell director Geoffrey Bell said the contest will make no difference to construction.