The Infrastructure Bill that will be a centrepiece of Wednesday’s Queen’s Speech will contain measures to give the Highways Agency a new level of autonomy that should help guarantee future work streams, the industry believes.
The Highways Agency is currently an executive agency of the Department for Transport, but the Bill is likely to convert it into a “Go-Co” or government corporation, a quasi-independent status similar to that enjoyed by Network Rail.
Commenting on the proposed reform of the Highways Agency, Dr Nelson Ogunshakin OBE, chief executive of the Association for Consultancy and Engineering said: “The establishment of a government owned company, similar to Network Rail, will enable greater transparency and accountability, while safeguarding against political interference that has long undermined the work of the Highways Agency.”
An ACE spokesman said that the change should remove the possibility of ministers altering or delaying HA projects to suit political agendas, pointing out that many of its spending programmes were badly affected by austerity cuts in 2010/11 while Network Rail’s projects were relatively unaffected.
As a Go-Co, the Highways Agency would also benefit from having its spending allocations mapped out six years ahead – an arrangement that Network Rail and London Underground already enjoy, allowing them to plan future projects confidently.
Ogushakin added: “Putting the Highways Agency on a firm financial footing, with multi-year settlements is a positive step. It will provide certainty and confidence for the construction industry, and better value for money for the taxpayer through efficiency savings associated with the ability to better plan and deliver the much-needed improvements to the UK’s road network.
“Our members hope that parliament will recognise the benefits of these particular aspects of the upcoming Infrastructure Bill and work hard to ensure there are no delays in its passing, allowing the ‘Go-Co’ to be established before the next general election.”
The Infrastructure Bill is also expected to outline the “allowable solutions” that house builders can follow to achieve the 2016 “zero carbon” standard where it is not feasible on site.
Allowable solutions could include improving existing homes’ energy efficiency by creating sustainable energy sources such as district heating schemes, or retro-fitting nearby homes with low carbon features such as solid wall insulation.
A consultation last summer proposed a range of options for house builders, including taking action themselves, contracting with a third party provider to deliver allowable solutions on their behalf, or making a payment to a fund which invests in projects equivalent to their obligations for carbon abatement.
However, media reports this week suggested that the government planned to exempt “small” sites from the allowable solutions regime, instead offering developers the option of paying a charge related to the price of a tonne of carbon.
Some reports suggested that “small” sites could be as large as 50 homes.
