HBF Wales Weekly News Summary Friday 27 March 2009

27 March, 2009

Friday, 27th March 2009

Top stories this week

HBF submits Zero Carbon response...read more  

BBA: February figures for the main high street banks.....read more

Government response to the Taylor Review of rural communities.....read more

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Economic news

Government and political news

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Events

Wales news

Supplementary budget proposals to help Assembly Government deliver on One Wales

Finance Minister Andrew Davies has presented the Government’s supplementary budget to the Assembly. The budget allocations include £84m to reduce NHS waiting times and £50m to begin work on 13 projects under the Strategic Capital Investment Framework (SCIF).

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Face to face with business

Deputy First Minister Ieuan Wyn Jones will this week start a series of face to face meetings with business leaders in every region of Wales to listen to their views and to discuss their needs. More than twenty senior managers from a wide range of business and social enterprise sectors attended the first session in the series at the QED Centre in Treforest on Thursday, 26th March. Further meetings will follow in West Wales on 6th April, Mid Wales on 21st May and North Wales on 11th June.

Said Ieuan Wyn Jones:

“I believe that the Assembly Government has built a good relationship with Welsh business in general. Devolution has brought Government in Wales closer to both businesses and communities. But I still think that it will be extremely valuable to hear individual views and specific experiences at first hand.

“I want to listen to those views, discuss the experiences and concerns - and then analyse the requirements of businesses like these to determine if there is anything the Assembly Government should do to strengthen the relationship.

“I also want to make sure that business leaders like the ones I shall be meeting are fully aware of the whole range of measures which the Assembly Government has taken to support Welsh businesses.”

This week also saw the start of a series of free seminars designed to help Welsh businesses get through the recession and emerge in stronger and more competitive shape.

The "Weathering the Storm" series, organised by the Assembly Government, brings together private as well as public sector organisations to present a truly comprehensive package of business support services - taking in both UK-wide schemes as well as measures available only in Wales. The objective of the series is to make sure that businesses in every part of Wales get the maximum possible support.

The series will kick off in Llandudno on 30th March - and later sessions will take place in Aberystwyth, Newtown, Swansea and Cardiff.

Details of attendance can be obtained from the Welsh Assembly Government’s Flexible Support for Business contact centre 03000 6 03000 or via the website www.business-support-wales.gov.uk

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Builders urge action on recession

A campaign to protect thousands of building jobs in the recession is to be launched at the Welsh assembly, following a similar launch in Westminster earlier in the year.

The Get Britain Building coalition of construction organisations and companies is warning 300,000 jobs could be lost in the industry around the UK


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HBF news

HBF submits Zero Carbon response

The final version of HBF's response to the Government's consultation on the definition of zero carbon homes has been submitted. The submission calls for future building regulations changes to be limited to a 44% improvement on current 2006 Part L standards and for policy beyond this to be based on finding simple and affordable means of providing suitable energy supplies to meet the balance of the zero carbon objective.

Click here to read HBF's submission

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Economic news

BBA: February figures for the main high street banks

According to the British Bankers’ Association (BBA), the trend in banks' mortgage lending was upward in February, with a net rise of £3.9bn, while finance for non-financial companies rose by £1.1bn. Key points in the BBA statistics include:

The annual growth rate for net mortgage lending moved into single digits for the first time since September 2001;


Gross mortgage lending, at £9.2bn, was at its lowest since June 2001;


February’s approval activity, both in volume and value, was marginally above January, but continued to be at a very low level.


Approvals for house purchase rose in February though were still some 31% lower than in February 2008;


Remortgaging approvals declined slightly as borrowers reverted to standard variable rates rather than moving to new fixed rate products.

BBA Statistics Director, David Dooks, said of the latest data:

“Most new mortgage lending is being done by the high street banks but demand is, of course, being moderated by the impacts of the recession. Remortgaging activity has slowed in recent months, while higher numbers of loans approved for house purchase simply reflect the banks’ greater market share. In the wider consumer market, unsecured credit is very subdued and individuals’ deposits are also weak, as people respond to the current interest rate climate.

“Within company financing, consumer-facing sectors were the only significant borrowers in February.”

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to topGovernment and political news

Government response to the Taylor Review of rural communities

The Government has set out its proposals aimed at helping rural communities to thrive in the 21st Century by providing more affordable housing and greater freedom to develop strong local economies.

Responding to Matthew Taylor MP's 2008 Review into issues facing rural communities, Housing Minister Margaret Beckett and Rural Affairs Minister Huw Irranca-Davies set out their proposals to help create strong and diverse rural communities.

The Review has identified both the specific challenges facing different rural areas and the similar issues facing both rural and urban economies. The Government will therefore give Local Authorities more flexibility to tackle the issues their communities face. The new measures announced today will help:

Small villages to provide the homes they need for local families priced out of the housing market by encouraging local authorities and developers to identify "exception" sites that can provide more affordable homes;


Rural businesses to get planning permission for sites that are suitable given their rural setting through a refreshed approach to planning policy that recognises their distinct needs.


Medium-sized rural towns to develop sustainable new neighbourhoods rather than building housing estates on their edges, including through a new £1m competition to encourage best practice;

To help underline the important role rural areas can play in delivering economic prosperity, a new single policy statement will be published combining existing planning guidance aimed at delivering sustainable economic development in urban and rural areas and town centres. This new single Planning Policy Statement will be published for consultation soon. Specifically, the aim is to bring together PPG 4 on economic development, PPG 5 on simplified planning zones, PPS 6 on planning for town centres, and part of PPS7 on sustainable development in rural areas, in relation to economic development. Some of PPG 13 for transport will also go into the proposed PPS.

Planning Minister Margaret Beckett said:

"We simply must take action to overcome the unsustainable pressures facing the future of rural communities.

"These subtle but important changes are the key to getting the balance right between protection and development in the countryside. This will give local communities the flexibility they need to take the right decisions on the individual issues they face."

Matthew Taylor MP said:

"This is an important day for the countryside. No change is no option - the alternative to sustaining and rejuvenating rural communities is to fossilise them, in time forcing out the families and working people without whom farms can’t be tended, shops and services kept running, village schools kept open."

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NHF: “with 700,000 on rural waiting lists, government must implement Taylor recommendations now”

Responding to the Government's proposals to revitalise rural communities, National Housing Federation Chief Executive David Orr said:

"The countryside is in crisis. We have 700,000 people on waiting lists for an affordable home in rural England and that number is getting bigger by the day.


"Traditional community life in many of our villages and market towns is in very real danger of dying out, as young people are priced out of the areas where they grew up by an influx of wealthy commuters, second home owners and

retired couples.


"These proposals will go a long way to reversing that trend by ensuring more affordable homes are built to meet local needs.


"Providing incentives for landowners to release more land for housing will save shops and schools from closure, and prevent many villages becoming virtual ghettos of the very rich and elderly. But the Government must act quickly to implement Taylor's recommendations."

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CPRE: Countryside need not be sacrificed in pursuit of economic prosperity

Safeguards are needed to ensure that precious countryside and green fields are not sacrificed to meet the housing and economic needs of rural communities. The warning comes from countryside campaigners, CPRE, following the Government response to the Taylor report.

Kate Gordon, CPRE’s Senior Planner, said:

“Rural communities need affordable housing in order to thrive. But it is vital that homes are provided in the right place where they are actually needed with minimum harm to the environment. This is best achieved through the planning system, rather than outside it by using exceptions sites, as the Government proposes.

“Effective planning can test proposals for their effects on the environment and communities, and fosters consensus and certainty. Exceptions sites can lead to development in the wrong place. Before rushing to build on green fields, priority should go to bringing back into use empty homes and redeveloping sites within existing settlements.

“Landowners have a role to play, but in providing incentives for them to make sites available, it will be vital that the Government puts in place safeguards to avoid any abuse of the planning system.”

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Appointment of the Chair of the Infrastructure Planning Commission

Sir Michael Pitt - who carried out the inquiry into the 2007 floods - has been appointed as Chair of the Infrastructure Planning Commission.

The Commission was established under the Planning Act 2008. It is one of the key components of the new regime for consideration of applications for the development of major infrastructure, intended to be “more efficient, transparent and accessible” than the past system of public inquiries. The Act defines certain projects as “nationally significant infrastructure projects.” Such projects are to be considered not by the local planning authority, but by the Infrastructure Planning Commission (IPC). The IPC will have the power to grant all the necessary consents to allow a project to proceed: the so-called “single consent regime”.

Sir Michael has also appeared before the CLG Select Committee which has confirmed its support for his appointment.

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Blacklisting in construction

Michael Clapham (Labour, Barnsley, West and Penistone) held an evening adjournment debate on blacklisting in the construction industry.

Specifically, he expressed his concern that membership by workers of trade unions was being used by employers to discriminate against them. He also expressed concern at the health and safety implications of such blacklisting and called for the government, as the major customer of the industry in the UK, must act to stamp out such behaviour.

In his response, Pat McFadden, Minister for Employment Relations and Postal Affairs, said:

"The practice of blacklisting should be anathema in today's Britain. It is a relic of the past, and if what has occurred recently in the construction industry is blacklisting rearing its head again, of course we will take that seriously".

He went on to explain the level of current protection which was in place: outlining sections 137, 146 and 152 of the Trade Union and Labour Relations (Consolidation) Act 1992 and recent modifications in the Employment Relations Acts 1999 and 2004.

McFadden also stated that the Data Protection Act 1998 classed trade union membership as "sensitive personal data" and that according to the Act, "it is unlawful, save for a few exceptions, to process such data without the subject's explicit consent".

On the issue of section 3 of the Employment Relations Act 1999, he commented that the government have produced draft regulations, on which they consulted in 2003.

These new measures would "allow individuals to obtain compensation for being refused employment or for suffering discrimination by their employer because of their inclusion on a trade union blacklist", he said.

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LGA: Chancellor urged to cut VAT on empty homes

VAT should be slashed on long term empty homes to bring up to 300,000 properties back into use, council leaders said this week. In a letter to the Chancellor ahead of the budget, the Chairman of the Local Government Association, Cllr Margaret Eaton, has called for the introduction of a standard VAT rate of 5% on the refurbishment of homes that have been empty for six months.

The LGA is calling on the Chancellor to introduce the tax cut in the forthcoming budget statement to stimulate building trade activity during the recession. VAT is currently cut to 5% only when a property has been empty for two years. The LGA estimates that by reducing that period to six months, thousands more homes could be brought back into use and the Government would benefit from the increased revenue this could generate – effectively making the proposals cost neutral.

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Industry news

Construction confederation; Day work rate issued for new fiscal year.

The annual calculation of day work rates for the construction industry has been issued by the Construction Confederation.

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Environment Agency: Changes to guidance on gypsum waste

Firms dealing with gypsum waste, such as plasterboard and plaster, are being encouraged to recycle and reuse more as new guidance on gypsum going to landfill was recently announced by the Environment Agency.

The landfilling of gypsum and other wastes with a high sulphate content together with biodegradable waste has been banned in England and Wales since July 2005.

This is to prevent the build up of hydrogen sulphide gas which is both toxic and odorous. However, where construction waste contains small amounts (up to 10%) of gypsum, separate disposal has to date not been required.

However, the relationship between sulphate in waste and the production of hydrogen sulphide gas is complex, and there is no minimum quantity of gypsum below which no hydrogen sulphide gas will be produced in a landfill. The EA have therefore revised their guidance to remove the 10% guideline value.

Therefore, from 1st April 2009, the 10% guideline will be scrapped and producers of construction and demolition waste must separate gypsum-based material from other wastes so it can either be recycled, reused (e.g. for agricultural soil treatment) or disposed of properly at landfill.

The EA's guidance on how to deal with waste gypsum is:

All waste must be treated before it is sent to landfill;

Loads containing any identifiable gypsum should not be taken to landfill but should be treated to remove the gypsum;

Where a load of gypsum must go to landfill, it must be deposited in a separate cell where no biodegradable waste has been accepted;

The simplest method of treating gypsum is to separate it from other waste at the point of production;

It could also be sent it to a contractor to sort it at a waste transfer facility;

Separated gypsum can be recycled or reused, for example in the manufacture of plasterboard or for agricultural soil treatment.

After 1st April 2009, if gypsum is accepted for disposal in the same cell as biodegradable waste, the Environment Agency will take action in accordance with their enforcement and prosecution policy.

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HCA: Empty homes refurbishment just part of the solution

Refurbishing empty properties to bring them back into use as affordable housing is just one part of the solution to meet housing demand and simultaneously stimulate supply, according to the Homes and Communities Agency.

Speaking at the Empty Homes Agency conference in London, Trevor Beattie the HCA’s Director of Policy and Strategy confirmed that the Agency is looking at how it might be able to direct more of its £8.4bn National Affordable Housing Programme towards empty homes. But he stressed that it was just one of many priorities and there might be a number of compelling arguments why the HCA’s public money might be better spent elsewhere.Trevor Beattie said:

“We would welcome any steps the sector could take to quickly bring empty homes back into use, and in doing so effectively provide extra affordable homes the same as if they were newly built.”

“But to listen to some commentators, you would think that the [nearly 700,000] empty homes across England could all be utilised immediately, whereas of course, that is unlikely to be the case.”

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Events

Zero Carbon, Part F and Part L - The cost and impact on housebuilders

Wednesday 20th May 2009 - Think Tank, Birmingham

With the consultations for Building Regulations Parts F & L and the zero carbon definition taking place this year, this conference will help housebuilders understand the impending changes and their cost and impact on the industry. It will also provide delegates with valuable and practical insight into the future of Building Regulations.

This full day event will specifically examine zero carbon, Part F and Part L over three morning sessions. The afternoon session will concentrate on the introduction of the new SAP methodology later this year with real life examples and a software demo. The conference will also analyse the real cost of sustainable housebuilding, looking at delivering to code level 3 and 4 and higher level schemes

To book online please click here or for further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk

to topHope Challenge: 12 - 14th June 2009, Peak District

HBF's nominated charity, Habitat for Humanity, which builds safe, decent homes for families living in poverty, is organising a fundraising event to take place in the summer. Taylor Wimpey, Bovis and HBF are amongst the teams already registered for the Hope Challenge 2009, and they are looking for more house builders to enter an event that was born out of industry activity. It is a challenge event for teams of 3-6 people that will test your initiative, your teamwork and your fitness. And by sleeping in your very own shelter you will experience some of the challenges faced by those who live in poverty housing. The event involves:

2 days and 2 nights in the great outdoorsMental and physical team challengesThe Shelter Build challenge - sponsored by NHBC1000m of hill ascent and 20 miles of trekkingA balance of fitness, strategy and team work

HFH is looking for teams of people who want to rise to the challenge of raising funds in support of the 2 billion people living in poverty housing around the world.

Click here for more information and entry requirements

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For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetings

For HBM events visit http://www.hbmedia.co.uk/ 

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Rosie Hinchliffe

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