Construction Industry

Lord Morris of Handsworth Excerpts

Thursday 23rd October 2014 Lords Chamber

[Lord Morris of Handsworth (Lab)]

My Lords, I start by recognising the efforts of my noble friend Lord O’Neill in securing this important and timely debate. I declare an interest as the recently retired chairman of the Midland Heart housing association.

The three elements of our debate are the construction industry, the UK economy and, of course, housing. Taken together, those elements can build a ladder of opportunity that provides the potential to change people’s lives. However, a robust construction industry and a thriving economy do not automatically transfer to good housing. We need the political will to deliver; in housing, that is what the Government lack. That is why I welcome the Lyons review, which is not only timely but asks the difficult housing questions. The review points to the systemic failure over many years to build the homes that our country needs. It highlights the need to tackle the deep and underlying causes of the crisis. Although it is early days in the debate on the Lyons review, I see it not as a game changer on housing but as a modest start towards change. It will refocus the priority in house construction from the speculative commercial tower blocks in and around our cities to the housing needs of local communities.

I welcome the curbs on development land held as a speculative investment when local people need homes. The message from the next Labour Government must be clear: “You did not make the land, you acquired it. So use it or lose it”. I also welcome the Lyons package in other respects. There is the dimension that I would describe as community involvement: local communities being given the opportunity and power to build homes where people want to live; councils producing a plan for homebuilding; and first-time buyers being given priority rights when new homes are up for sale.

However, today’s debate is also about the contribution of the construction industry. Construction is not just about building houses. The construction industry is literally the burden-bearer of our national infrastructure, including roads, railways, bridges and tunnels, and not forgetting local shops, hospitals and schools.

As we seek to change attitudes and culture in the British economy, we must also examine the methods and behaviour of some of the stakeholders, including employers and, of course, trade unions. The worst example of behaviour that we have experienced in the construction industry is the blacklisting of workers, which was, frankly, not just disgraceful but totally unacceptable—but widespread. That story goes to the core of our political system, involving some of the biggest names in the construction industry, who engaged with and participated in the blacklisting of hundreds of construction workers through the infamous organisation, the Consulting Association. That blacklisting organisation was consulted by some of the biggest names in the industry. The information that it provided to the construction companies resulted individuals being blacklisted and excluded from any chance or opportunity of gainful employment in the industry. Many of the biggest names have since apologised, and some have said that they will compensate the victims, but we all want to know who in those companies felt blacklisting to be an acceptable form of running a business.

Last year, a report on blacklisting in employment was conducted by the Scottish Affairs Committee, who considered how best practice could be taken forward to ensure that blacklisting could not occur in future. It argued that employers who engaged in such corrupt practices should not have the benefit of publicly funded contracts.

In 2010, the blacklisting regulation was introduced by a Labour Government. As a result, a blacklisted person does not have to be an employee of the company, and companies have a responsibility to justify any decision they take not to employ such people. I am sure that construction workers will be mindful of their responsibility to deliver not just for the UK economy but for the thousands seeking homes, the thousands on a waiting list that gets longer, never shorter, a waiting list that ensures that some people at the top of the list have choice; at the bottom of the list, there is no choice. I say that those people will find hope from the Lyons review and will serve the British people by building the homes that people need, because construction workers, by their tradition, are builders, not destroyers. I therefore again congratulate my noble friend on bringing this debate forward.