Future of Construction Confederation in doubt

The Construction Confederation faces an uncertain future after the Confederation of British Industry's (CBI) announcement last week that it will launch its own construction interest group.

The Confederation also revealed that the Major Contractors Group and National Contractors Federation will cease to exist from January 2009 when they formally merge as the UK Contractors Group (UKCG).

Promoted as a single building organisation, it aims to mirror the Civil Engineering Contractors Association, but will be limited to major contractors.

The creation of the UKCG came off the back of the CBI's decision to launch the Construction Council in September.

A CBI spokeswoman said the council will be headed by Carillion boss John McDonough and consist of around 20 "senior players in big companies", who will meet with MPs here and in Europe to lobby on industry issues.

Critics said it would further fragment the industry, while Confederation officials confirmed it would likely result in a further radical overhaul of the body.

A spokesman said remaining Confederation members would have to decide by the end of the year what they wanted to happen with the group.

"It will remain as long as the members want it to remain," he said.

The Federation of Master Builders (FMB) hit out at the Construction Council, calling it "yet another umbrella group" and complaining it had not consulted major industry groups.

FMB director of external affairs Brian Berry said: "We are the largest body representing small and medium enterprises and we are not there, so I don't think it is taking on builders' needs at all."

The National Federation of Builders and the Civil Engineering Contractors Association, both members of the Confederation, said they welcomed the set-up of the council.