Trade body rejects major merger proposal

Brian Berry

The Federation of Master Builders (FMB) has opposed government proposals to merge the Construction Industry Training Board (CITB) with the Engineering Construction Industry Training Board (ECITB), warning that the move could leave smaller construction firms with less influence over industry training.

Responding to a Department for Work and Pensions consultation on the future of the training boards, the FMB said there is no clear evidence that a combined organisation would deliver better skills outcomes for small and micro businesses.

The trade body argued that a larger, more centralised training board risks overlooking the needs of SMEs, which make up the vast majority of construction firms.

While rejecting the merger proposal, the FMB said reform of the training system is still needed. It called for greater representation of smaller firms in decision-making, increased transparency over levy spending and stronger governance arrangements should the government decide to proceed with the plans.

Brian Berry, chief executive of the FMB, commented: “Small building companies are not convinced this merger is being driven by what is best for them or for construction skills more broadly. The government has not made a clear case for how merging CITB and ECITB would improve outcomes for small builders, and there is a real risk that the voice of smaller firms will be diluted even further in a larger organisation with the introduction of large multinational engineering firms.”

He added: “If the Department for Work and Pensions is determined to press ahead, it must ensure the new organisation is built around the reality of the construction sector. That means giving representative bodies a formal place in governance, being far more transparent about how decisions are made and how levy funding is spent and shifting to a culture that listens to and works alongside the industry. Without those changes, small builders will once again be asked to pay in without getting the support they need back out.”

 

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