THE GOVERNMENT and Parliament must break the Brexit deadlock and find a way forward warns the Federation of Master Builder (FMB), in response to the latest Construction PMI data, which shows another drop in construction output.
The March 2019 PMI data revealed an Index score of 49.7, up slightly from 49.5 in February, against the no change threshold of 50.0. This points to a sustained decline in construction output, representing the first back-to-back fall in construction output since 2016. While the residential building sector enjoyed an upturn, commercial construction was the worst performing area.
Commenting on the results, published this morning, Sarah McMonagle, Director of Communications at the FMB, said: “The construction industry is being seriously affected by Brexit uncertainty as evidenced by two very worrying sets of results for construction output in the first quarter of 2019.
“Businesses have been waiting for politicians to come to some resolution for far too long now, and it’s time that this deadlock was broken. It’s not surprising employers are finding it hard to plan for the future, when we don’t even know when, or indeed if, we’re leaving the EU. Today’s results are a reminder of just how vulnerable the construction industry is to political turmoil as confidence among consumers and contractors continues to wobble.”
Ms McMonagle concluded: “Brexit uncertainty and the construction skills shortage have created a perfect storm in our industry.
“Around 9 per cent of construction workers in the UK are from EU countries, but we know from speaking to small construction employers that many of these skilled workers are starting to return, whether that’s because of strengthening economies elsewhere, or that they simply don’t feel welcome anymore. This is compounding an already severe construction skills shortage, and I’m worried that the Government’s post-Brexit immigration system will make it even worse. For example, the system will not allow Level 2 tradespeople to live and work in the UK for more than 12 months at a time. At the same time, the Government’s figures last week show that the number of Level 2 apprenticeship starts among our domestic workforce is dropping.
“It’s quite simply not possible to build the homes and infrastructure we need without bricklayers, carpenters and plasterers. The Government and industry must work together to attract more people into the industry, by offering them high quality training with clear career pathways for progression but in the meantime we need sustained access to tradespeople of all skill levels for the industry to continue being open for business.”
Elsewhere in the economy, the Federation of Small Businesses has expressed concern at the UK’s productivity growth in Q4 of 2018 decreasing for the second consecutive quarter.
Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “Today’s data highlights yet again the impact of the political and economic uncertainty to the economy.
“Small business confidence has fallen through the floor as firms face a trying time amid a fragile economy.
“While there were some positives in the data such as a 0.4% productivity increase in services, there was a significant 1.1% decrease for manufacturing.
“Small firms are not only contending with unprecedented uncertainty, they are also dealing with a raft of new cost increases and reporting requirements.
“Rising labour costs have continued with the introduction of Making Tax Digital, fresh hikes to business rates and a further increase in auto-enrolment pension contributions.
“In order to improve productivity, key areas that must be addressed include management and leadership, broadband connectivity and the scourge of late payments.
“All this amid the ongoing uncertainty over the future of the UK’s relationship with the EU which shows no sign of reaching a resolution.
“Productivity will only continue to decline unless the Government can do more to step up and back British businesses.”
Welsh Waters in call for improvement following increase in pollution incidents
NATURAL RESOURCES WALES (NRW) is calling for Dŵr Cymru Welsh Water to “step up and take action” after its annual environmental performance reports for water companies highlighted an increase in pollution incidents.
NRW also found a decrease in compliance with environmental permits for sewage discharges.
The deterioration in performance by Dŵr Cymru Welsh Water has led to the company being downgraded from four-star – industry leading – company status last year to three-star (good company) under 2021 Environmental Performance Assessment metrics (EPA).
The report reveals that 83 sewage-related pollution incidents were caused by Dŵr Cymru Welsh Water assets last year, compared to 77 the previous year.
Two of these pollution incidents were categorised as having a serious (High) environmental impact.
There was also one serious (High) incident from a water supply asset.
It also shows that numeric compliance against permitted discharges dropped from 99.7% to 98.3% and self-reporting of incidents dropped from 80% to 76%.
Expectations for improvements are outlined in the reports, including targets to reduce the number of pollution incidents year on year, aiming towards zero.
The report said the although the total sewage pollution incidents metric remained green, in 2021 “there has been an increase of six incidents -from 77 in 2020 to 83 in 2021. ”
“It is disappointing Dŵr Cymru have not sustained their improvement in this metric from last year”
The NRW performance report states: “The overall performance for water supply incidents is unacceptable.”
“We are calling for urgent action from Dŵr Cymru after 2021 saw the sixth consecutive year where the number of incidents from water supply assets increased.”
“We welcome the inclusion of serious incidents from water supply assets in the serious pollution incidents EPA metric from 2021 to bring more focus on this area of performance.”
Ceri Davies, NRW’s Executive Director for Evidence, Policy and Permitting said:
“Water companies have a responsibility to the environment, as well as their customers, and they must take these incidents – and the impact they have on our water quality – seriously.”
“Over many years water companies in Wales have invested significantly and improved their environmental performance so we are challenging their recent performance and asking them to set the standard for the water sector by attaining industry leading status, whilst also showing leadership in responding to the biodiversity and climate crises.”
“The decline in environmental performance is disappointing and we expect them to respond positively with renewed effort, and to drive forward improvements.”
“Earlier this week, we published our storm overflow roadmap, in collaboration with the water sector and Welsh Government, which outlines an action plan of commitments from all those involved to reduce the impact of storm overflows on our rivers in Wales.”
“This sits amongst a number of initiatives across other sectors including rural land use and industry, to tackle the numerous threats facing our rivers.”
“Improving water quality for the long term requires a collective effort from all involved, working together to identify catchment-scale solutions to contribute to healthy rivers.”
Welsh Water has not commented as yet on the report.
M&S opticians opens its doors in Llanelli Parc Trostre
MARKS & SPENCER has opened the newest branch of its M&S Opticians service, located in the retailer’s popular Llanelli store.
M&S Llanelli Parc Trostre will offer customers an expert opticians service, which includes a full eye health examination (OCT scan) for every eye test booked at no additional fee.
Free eye tests are available as an opening offer, as well as 15% off glasses and sunglasses for Sparks customers. There’s a wide range of designer brands to choose from including Mulberry, Prada, Joules, Kate Spade, Oakley, Police, Maui Jim along with leading lens manufacturers – Zeiss and Nikon.
Expert advice on contact lens fitting and wearing is also on hand, alongside a contact lens home delivery option. The store will also be home to a hearing aid audiologist who will be offering free hearing health checks along with latest hearing aid technology, including rechargeable models and mobile connectivity.
M&S Llanelli Parc Trostre is the second optician service to open in Wales following a successful trial across ten UK cities, during which the service received a customer satisfaction rate of 96% and a customer recommendation rate of 96%.
M&S Llanelli Parc Trostre Store Manager, Aled Bonnell, said: “We’re always looking for ways to make shopping at M&S even more rewarding and feedback from our trial showed that customers loved the convenience of having an Opticians service in our store. We’re really excited to be opening our M&S Opticians in Llanelli and hearing what our customers think. The choice of different brands we’re offering is second to none and we have brilliant opening offers to suit all budgets.”
Public advised to avoid rail travel as biggest strike in 30 years about to start
Talks between senior rail industry figures and union leaders were taking place through the day to try to avoid industrial action, although with little optimism from either side or government that any agreement could be reached.
The first of three 24-hour walkouts by 40,000 RMT members, including signallers, maintenance and train staff, will start just after midnight on Tuesday morning, with only one in five trains running on strike days and halting services altogether in much of northern and south-west England, Wales and Scotland.
Only four rail routes will be operating in Wales on the three strike days and at a reduced service. Services will start at 7am and stop at 6pm.
• An hourly service between Radyr and Treherbert
• An hourly service between Radyr and Aberdare
• An hourly service between Radyr and Merthyr Tydfil (apart from on Saturday, June 25, when it’s between Radyr and Pontypridd)
• Reduced services on the mainline between Cardiff and London from 7am to 6pm. The last train from London is at 4.27pm.
Major train stations including Swansea, Bridgend, Carmarthen, Llanelli, Aberystwyth, Holyhead and Llandudno will have no services. There will only be limited services from Cardiff, Newport, Pontypridd and stations on the Valley lines to Merthyr, Aberdare and Treherbert.
Full details of the timetable for the days of the strike have been published.
Customers can find these on the TfW, Traveline and National Rail websites using the journey planners.
Customers with existing non-season tickets valid for travel from Tuesday 21 June to Saturday 25 June can use those tickets anytime between Monday 20 June and Monday 27 June. Alternatively, customers can claim a full refund, with no admin fee charged. Season ticket holders can apply for compensation via Delay Repay.
In the meantime, TfW has suspended sales of Advance tickets for the first three strike dates in order to minimise the number of people disrupted. Customers are advised to continue to check the TfW or Traveline websites, and those of other operators, for updates.
Transport for Wales says passengers should not travel by train during the three strike days on June 21, 23 and 25. There are no strikes on June 20, 22, 24 and 26 but Transport for Wales said people should only travel if essential as services would still be affected.
Staff working for Transport for Wales are not affected by the strike. But RMT staff working for Network Rail which manages the infrastructure across the UK are going on strike meaning that services across the UK are all affected.
Only services in Transport for Wales routes in one part of the Valleys and services on the mainline into Wales from London going as far as Cardiff will be operating. There will be no services west of Cardiff.
The strikes, over pay and attempts to reform the rail industry with post-Covid work patterns hitting commuter revenues, will cause six days of disruption, with trains limited to one an hour between 7.30am and 6.30pm on major intercity and urban routes. Services will start later and be reduced on subsequent days.
The action is being taken by Network Rail employees and onboard and station staff working for 13 train operators in England. The RMT said thousands of jobs were at risk in maintenance roles and that ticket office closures were planned, on top of pay freezes during a time of high inflation.
The walkout by signallers will have most impact, particularly in rural areas, leading to line closures in places such as Wales, where there is no direct dispute with the train operator. Most operators have told passengers to travel only if necessary on strike days. Northern Rail has advised passengers not to travel for the whole week.
While Conservatives have attempted to associate the union-backed Labour party with the strikes, Labour has pointed out that the transport secretary, Grant Shapps, and other ministers have refused to take part in talks.
Unions asked to meet ministers, saying the Treasury and Department for Transport control contracts and funding. Shapps said it was up to employers to negotiate, although train operating companies have been told they cannot offer pay rises, according to industry insiders and unions.
The shadow transport secretary, Louise Haigh, speaking on the BBC Today programme on Monday, said it was imperative that the government stepped in. She said: “Not only are they boycotting the talks, they are actually hobbling them .”
However, Simon Clarke, the chief secretary to the Treasury, told the BBC: “There’s no point giving false hope, if you like, that these strikes can be avoided. At this stage it is likely that they will proceed.”
The business secretary, Kwasi Kwarteng, is set to table legislation to allow agency workers to step in during strikes, which could be enacted by late July to apply to future industrial action. The RMT said it would be impossible to draft in people to replace skilled rail workers and a spokesperson said it was “playing to the gallery”.
Shapps said on Sunday it was “crazy” to suggest that the Tories wanted rail unions to go on strike, after Labour accused the government of encouraging the walkouts to go ahead in order to stoke division. He said the strikes were “unnecessary” and a result of trade union leaders “gunning for” a fight, accusing the RMT of planning to “punish millions of innocent people”.
Last week, Shapps told rail staff they risked “striking yourself out of a job”. Network Rail bosses estimate the stoppages will cost the industry about £150m in lost revenue.
Talks have been ongoing between Network Rail and the RMT but bosses admitted there was little hope of a breakthrough.
The walkouts are on 21, 23 and 25 June and a special timetable will be in operation from Monday, with some evening services curbed, until Sunday. About 20% of trains will run on mainlines and urban areas.
Adding to the commuter misery, a separate London Underground strike will also bring much of the capital’s transport to a halt on Tuesday. About 10,000 members of the RMT will walk out for 24 hours, closing most tube lines. Transport for London has advised people to avoid travelling on all of its services if possible, with buses likely to be crowded and slow on jammed roads.
The London overground and Elizabeth lines will also continue to be affected by the national rail strike throughout the week.
Other unions may join the rail strike later in the summer, in a move that could halt services altogether. The TSSA union, which represents control room staff and managers who step in to run contingency signalling, is balloting members at Network Rail and announced strike votes at more train operators last week.
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