After its analysis of the pipeline of UK government projects revealed that 84% are due to commence by 2016, KPMG is warning that skills shortages and lack of capacity will inevitably delay public and private sector projects.
The pipeline data covers a total of 3,148 projects spread over 16 sectors with a total value of approximately £128bn. The projects are procured by central and local government and cover three spending periods: 2014-16; 2016-20; and 2020 and beyond.
But KPMG’s analysis shows that 2,656 projects out of the total pipeline of 3,148 are either already underway, or due to start in 2015 or 2016.
The large weighting towards projects underway or gearing up highlights the pressure on the industry’s supply chain and skills capacity, says KPMG’s head of infrastructure, building and construction, Richard Threlfall.
Skills shortage is common in many countries. The reason is simple and that is that those who produce or provide maintenance services are grossly under paid with little recognition given to them compared to those who just manage-supervise or juggle with figures.
Just compare the remuneration of those who produce food and working in farms, in factories that produce goods and those who provide services such as providing cleaning and maintenance services, just to name a few.
Compare their remuneration with those who work in civil service, financial, stock brokers, accounting, legal, advisory sectors, who get the bulk of the of the profits and income rates.
Further the working class pays more income tax proportionately than those in the other sectors.
The recent Oxfam study has revealed that top 1% own almost 50% of the world’s wealth. It is also perceived that the top 1% may also control over 90% of the world’s wealth as this 1% would include the politicians in power, financial institutions, fund managers, trustees of religious/pension/etc funds.
Also penalties are highest for the working classes whereas they are either minimal or non-existent for the other professionals.
W Buffet has declared that the rich do not pay tax commensurate to their incomes and yet no action is taken by those in authority.