FMB CYMRU TO SUPPORT SMALL FIRMS TO WIN TENDERS

The Federation of Master Builders Cymru (FMB Cymru) have won a tender to deliver a pilot project which aims to support small construction firms to bid for public sector contracts jointly. 

The initial phase of The Construction Enterprise Pilot Project (CEPP) will be a pilot in the South Wales Valleys area, with the aim of expanding the project to the rest of Wales in the longer term.  The support is free to FMB Cymru members and the initial phase of the project is to run until December 2014. Any companies interested, whether they are currently FMB Cymru members or not, are encouraged to contact the FMB Wales office on 01656 750955 or email wales@fmb.org.uk. 

Richard Jenkins, Director of FMB Cymru and Chair of the Wales Procurement Supplier Board, said:

"The project aims to practically support smaller builders to be able to bid for public sector contracts more successfully, by increasing the capability of local construction firms to help them win the contracts that they will be best-placed to deliver. It will enable like-minded concerns to work together to achieve growth and success in the tender market in South Wales Valleys initially, and then use the knowledge, contacts and skills to keep winning contracts in the local area and wider markets in the longer term"

“We want to help Welsh local builders to compete at a price point comparable with their larger competitors, and develop their business by taking part in joint activities that will drive success through a focus on cost reduction, good management and control.  We feel it’s important for us to be supporting small construction businesses in Wales, to achieve the critical mass required to bid into contracts, that previously they would not have had the confidence or experience to engage in"

The Construction Enterprise Pilot Project (CEPP) will help support the ‘Joint Bidding Guide’ launched by the Minister for Finance last autumn.

Finance Minister Jane Hutt said: 

“I’m delighted that the FMB want to support the Joint Bidding Guide and improve access to contracts for smaller businesses in Wales.  We all want to see access to public contracts widen through consortium bidding and this is an excellent example of how this can happen.  I would encourage small businesses in the South Wales Valleys to take advantage of the FMB’s pilot to improve their chances of winning public sector contracts.”

Business organisations reiterate call for devolution of Stamp Duty

Business in Wales met with representatives of the Welsh and UK Governments, including Jane Hutt, the Welsh Minister for Finance, today to further discuss the devolution of Stamp Duty Land Tax.  The UK Government is consulting with business before reaching a decision and Federation of Master Builders (FMB Cymru) and CBI have both reiterated their support for this tax to be devolved.

The CBI and FMB Cymru have been working closely with the Silk Commission and the Minister on the issue of Stamp Duty Land Tax.  Both organisations agree that, if used effectively, devolution and reform of stamp duty could be an effective tool for growth.

Richard Jenkins, Director of FMB Cymru said:

“The Welsh housing industry has been one of the worst hit during the recession and is struggling to recover. Stamp Duty has the potential to add a much needed injection of growth into the market, at a time where costs of development are set to increase. The Welsh Government already has responsibility for land and housing, and stamp duty land tax if used correctly could be an important tool to increase activity in the housing market.

“Our view is that Stamp Duty Land Tax should be devolved to the Welsh Government as a matter of urgency and that there should be a clear timeframe set for this process.  Clear mechanisms need to be agreed and put in place for business to continue to be consulted during the process of devolving the power, and continue to be consulted regarding the most effective way to use this power once it is devolved to ensure it is a progressive tax.”

Emma Watkins, Director of CBI Wales Chaired the meeting at Cathays Park today. Following the meeting she commented:

“CBI members had a constructive discussion today with Treasury and Welsh Government officials on stamp duty devolution. As was clear from this morning's meeting, business engagement is critical to achieving successful devolution and reform of the stamp duty land tax regime in Wales.

“A stronger housing market benefits everyone and a reformed SDLT regime, tailored to Welsh needs, that attracts investment to Wales by increasing market activity is within our reach. To ensure market confidence and business certainty, this is a journey business and government must continue to take together.  CBI looks forward to working closely with the Welsh Government on this process."

Jane Hutt takes opportunity to discuss reform of Stamp Duty with construction sector

Richard Jenkins, Jane Hutt AM, Francine Morgan and Marc Jehu

Finance Minister Jane Hutt today took the opportunity to discuss the devolution of stamp duty to Wales with representatives from the Federation of Master Builders Wales and Jehu Project Services when she visited the Royal Buildings development in Port Talbot.

When completed the Royal Buildings site will consist of 46 affordable rented flats and four retail units. Jehu Project Services , part of the Jehu Group have been appointed as the main building contractor for the project.

Following a tour of the site Jane Hutt said:

“In the current economic climate, the need to boost jobs and growth is the Welsh Government’s first priority. The steps we are already taking - both by using the powers we currently have, and also through our use of European funding – are playing an important role in supporting economic recovery.

“But we want to do more, and the housing sector and the wider construction industry have an absolutely vital role to play. That is why I believe it is so important that powers over stamp duty land tax should be devolved to Wales.

“In my meetings with the construction sector, I have been struck by the strength of the consensus that exists in favour of devolving and reforming stamp duty. If we were to gain powers over this tax, I am certain that we would be able to reform it in a way that made it simpler, fairer and more efficient – benefiting both home builders and home buyers, and boosting this key sector of the Welsh economy.

“I believe that this view will come through loud and clear in the UK Government’s ongoing consultation about devolving the tax, but I would encourage everyone involved in the industry to make a submission to the Treasury’s consultation.”

During her visit the Minister also discussed the recently published Construction Procurement Strategy. Jane Hutt added:

"Investing in construction provides a great opportunity to deliver much more than new buildings and roads. By applying intelligent and innovative procurement strategy and policy, we can use this investment to help provide jobs, training and contract opportunities which is key to our agenda to support jobs and growth in Wales.”

Richard Jenkins, Director FMB Cymru said:

"We welcome the Minister taking the time to speak to FMB members directly on important issues such as procurement and the Stamp Duty Land Tax. Our policy on SDLT is clear - the devolution of this tax is vital, and as it has been recommended already by the Holtham and Silk Commissions, the UK Government should devolve the powers to Wales without delay. The construction sector could benefit greatly by this tax if it could be tailored to suit the needs of the Welsh construction and business sector."

Marc Jehu, Managing Director at Jehu Projects, said:

“The Royal Buildings project is nearing completion and has played a significant part in Jehu Group’s success in the past year. It has also provided job security and additional new jobs. Once completed, the site will provide fantastic homes for individuals or families, in addition to a platform for small businesses to grow.

“With a house building company within the Jehu Group, we would welcome reduction in stamp duty on homes in the entry level of the market, provided it is not off set by increases in middle and higher end of the market. Wales is woefully short of quality executive homes as well as affordable homes and if we are to attract companies into Wales, we need to offer appropriate homes. We look forward to participating in the consultation process.”