CITB signals about-turn on relocation

The Construction Industry Training Board this week signalled that it is about to yield to a storm of protest and reverse its controversial decision to spend œ6 million on relocating its administrative headquarters from Bircham Newton to Peterborough.

A briefing note to members of CITB staff advises that there are "positive indications that the industry is requiring more training support." It says the call on financial resources means the board "may decide that the head office should not relocate".

The board will meet next Wednesday to review the relocation plan. Various options will be considered, including improving the existing offices.

The staff briefing note says:

n There are indications that the industry is experiencing an increased workload, albeit patchy. This has raised fears of skill shortages which may require extra funding for training;

n Some firms are responding to Inland Revenue warnings about the status of their workforce, by taking them back into direct employment. If this becomes widespread, the fall-off in the 2% labour-only levy could lead to a reduction in overall levy income;

n Industry reaction "has revealed disquiet at the use of reserves to make provision for the relocation of head office at a time when training may need greater financial support in the short term;"

n The Parliamentary campaign, led by local MP Henry Bellingham, revealed "unease" with the decision, and "his views carry weight as he is a long standing advocate for the work of the CITB."

The board originally argued that the œ6 million cost of a move to Peterborough could be recouped within three years and ongoing savings would mean more money for training. Opponents of the move have questioned the assumptions on which those calculations were based.