Brexit: Exclusive with Jeremy Blackburn– RICS

UK Construction Media talks exclusively to Jeremy Blackburn, Head of Policy and Parliamentary Affairs for RICS.

Jeremy is responsible for RICS relationships across Whitehall and Westminster, and with the devolved administrations. His role focuses on the development of RICS policy positions across land, property and construction, and on providing an RICS opinion on topical issues. He works with members to develop coherent and commercially relevant policy, which guides government on how to achieve its public policy objectives.

This has included RICS’ residential policy paper launch at last year’s party conferences, responses to the Autumn Statement & Spending Review focusing on infrastructure investment, a rural and land economy paper at the Oxford farming conference, manifestos for all of the devolved elections, response to Budget 2016 – and an analysis of the EU referendum for property.

Jeremy has been with RICS since 2011, including a stint as Interim Director of External Affairs in 2013. He has previously worked in the Parliamentary Resources Unit in the House of Commons, in the Welsh Assembly, as speechwriter to the Director-General at the National Trust, at a major farming trade body, in the Commission for Rural Communities and as a Private Secretary to Junior Minister Richard Benyon MP in DEFRA.

What affect would leaving significant funding streams such as the European Investment Bank and European Investment Fund have on key UK projects?

These are significant funding streams that have helped both London transport and the electricity network in The Highlands, to name but two significant infrastructure projects. Losing the £8.4Bn these represent – along with EU regional and structural funds – would have a definite effect on project delivery and start-ups, particularly across the devolved nations. That said, the UK government has ear marked £100Bn for infrastructure spending by 2020-21, with local government pension funds following and more on attracting private sector investment. That helps to put the EU funds in perspective.

Do you think the UK would be able to replace these streams of funding if it left the European Union?

Conceivably yes but much depends on how effective we are at attracting private sector investment, and the continued interest in investing in UK projects in a Brexit scenario – dependent on foreign funds perception of risk and return in a country likely to be still negotiating new trading relationships.

Do you think the loss of free movements of goods could have a positive or negative impact – or both?

In terms of construction, and particularly material imports and exports, the EU accounts for 59% of imports (with China the only none EU nation in our top 5 importers). The loss of access to the single market is therefore less important for UK construction product exporters; however the loss of free movement and return of trade tariffs could push firms to look onwards and purchase domestic materials and potentially increase the cost of production for projects using imported materials.

What is your view on, for example, the recent steel industry crisis, which occurred largely due to imports from outside of the UK being cheaper?

UK steel production should be regarded as a strategic asset, and part of an overall industrial strategy. The government is grappling it’s way slowly, no matter how unwillingly, to just that. This was a complex situation in which EU regulation and trade agreements played only one part; whilst the UK government puts measures in place for Port Talbot, like an enterprise zone with enhanced capital allowances,  the EU should look at how to supports all member states strategic steel assets and maximises their ability on the world stage.

In your recent construction market survey, the availability of skilled workers is decreasing. What impact will leaving the EU potentially have on the skills shortage that this country already faces?

Labour from across the EU is already vital to the UK construction sector. London has become particularly reliant on importing skilled labour. Leaving the EU would exacerbate this situation; with the potential knock on of greater costs as labour demand outstrips supply.

In a post-Brexit world though, control of our immigration policy would mean the ability to target certain trades and professions on the world stage. The need for workers is however driven by overall economic activity and that may lessen after an exit from the single market and whilst trade negotiations are on-going.

In terms of the UK’s membership with the EU creating a framework of directives and regulations, what could be the outcome of a Brexit if allows UK procurement to stipulate the use of UK firms and materials alone?

Were a Brexit to occur it could allow UK public procurement to stipulate the use of UK construction firms and materials, essentially becoming protectionist but to the benefit of domestic businesses.

Access to the single market – and EU procurement frameworks – do befit those of sufficient size and ability to take advantage of them. Overall though OJEU for example, is viewed as a burden on industry.

What affect would leaving the EU have on SME’s in the UK construction industry?

The potential shock of a Brexit, and its reverberation through supply chains, could see many SMEs on already wafer thin margins suffer badly – particularly outside of London and the south east. We have already seen many delayed or postponed investments and projects, as the referendum came into sharp focus.

The differences between big and small business organisations on Brexit are clear, and so are the basis on which they’re assessing the referendum. The FMB’s survey shows that small builders are following personal opinions and perception around burden of regulation to vote leave.

Whilst many small construction firms are looking at very present concerns, they are invariably downstream in the supply chain and need to consider what the impact of Brexit would be on major clients and contractors.

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