The Green Deal quality mark
Construction firms will warn climate change minister Ed Davey at next week’s party conference that small firms could be crippled by the Green Deal unless more is done to tackle much-expected cash flow problems.
The Glass and Glazing Federation, Land Securities and Velux are supporting The Green Deal Dialogue – a year long lobbying campaign by public affairs experts Dods, which will hold a series of debates at the party conferences. These begin next week at the Liberal Democrats’ conference in Brighton, where Davey will be on the debating panel.
James Lee, marketing and communications manager at the Glass and Glazing Federation. said: “Cash flow is a particular problem for small businesses. Most are likely to be acting as Green Deal installers, working for Green Deal providers. This introduces an extra payment layer into their operations. Normally they would expect to work for a consumer and be paid promptly. As part of the Green Deal they are unlikely to be paid until all the Green Deal work has been inspected and signed off – which could mean waiting until other firms have finished their aspect of the work.
“Payment times could be pushed up to 60, even 90 days which would cripple many SMEs. We may need to look at a model where SMEs are given some payment up front to help them finance the equipment.”
Lee said that VAT issues would also be put on the table – particularly what he described as the unfairness of charging 5% rate of VAT on renewable technologies, compared to the full 20% on windows.
The Green Deal is set to be launched on 1 October and will involve all installers having to be accredited and then trading with a new Green Deal approved quality mark which was launched last month. Lee said that although the GGF supported certification, the cost of getting it could also be a huge barrier to entry for SMEs, particularly as they could not be certain there would be a market for the Green Deal.
The aim of the Green Deal Dialogue has been to ensure that the coalition’s flagship policy works for SMEs and consumers. It will launch concerns in a report to be presented as part of the debate. The report will include results of a Dods Green Geal survey of 100 MPs which revealed that:
- 21% MPs were not familiar with the Green Deal
- Only 49% MPs would promote uptake of the Green Deal in constituencies
- Just 30% understood the Green Deal funding structure
Meanwhile, a group of organisations co-convened for DECC by MP Nick Raynsford is meeting to thrash out Green Deal models and issues for the SMEs. The so-called SME Green Deal Roundtable met for the first time in June, and was due to meet this week. The panel will provide recommendations to DECC Ministers on how SME-led business models can be delivered, the best means to communicate the Green Deal to SME trades and how this can be done to tie in with wider communications activities to promote the Green Deal.
Members include the National Home Improvement Council (NHIC), the Federation of Master Builders (FMB), Builders Merchants Federation and the Glass and Glazing Federation.
