Construction Sector: Roadmap to Zero Retentions

Baroness Neville-Rolfe Excerpts

Wednesday 15th December 2021 Lords Chamber

[Lord Callanan (Con)]

I can answer that question by saying what we have done in central government in my department: we have substantially abolished them. Most government departments have now got rid of them and only the Department for Education is a laggard. We would be better to do without them, but that is not the same as moving towards a statutory ban.

[Baroness Neville-Rolfe (Con)]

My Lords, as somebody who initiated a review of retentions when on the Front Bench over five years ago, I have one simple question: does the Minister accept that the delay in dealing with retentions in the construction industry is injurious to the industry and hence to the national interest? Will it be possible to now have more rapid action?

[Lord Callanan (Con)]

As I said in response to a previous question, I agree with my noble friend that we need to try to drive some action in this area. But a statutory ban is a very blunt instrument, and it would be difficult without some alternative form of surety being put in place, so we are working with the industry to try to develop those models. My noble friend will know the issue very well from the work that she did.