MPA response to government spending plans
Association welcomes spending review but reiterates need for accelerated delivery
THE Mineral Products Association (MPA) has welcomed the Chancellor George Osborne’s commitment to increase public investment to more than £50 billion per year from 2015/16 and is encouraged by announcements on infrastructure spending believed to be more than £100 billion over the next five years. However, the Association remains concerned about the need for short-term investment prior to the next general election.
Nigel Jackson, chief executive of the MPA, said: ‘We have heard the words, we now need a greater sense of urgency and accelerated delivery to create confidence for the private sector to invest to really boost growth.’
The 2012 Autumn Statement announced additional funding for transport, including road construction and road maintenance. However, sales volumes of asphalt for road surfacing, say the MPA, have declined by 8% so far this year, following an 18% decline in 2012, indicating that delivery of this additional funding on the ground has yet to start happening.
Mr Jackson continued: ‘This shows that there can be a gap between policy aspiration and delivery on the ground which can undermine confidence. The imperative to build more affordable and private housing due to the chronic undersupply, as well as replacing our fragile energy supply capacity and transport system, remains as strong as ever.’
