The leading body for the water industry has announced plans to improve Britain’s infrastructure between 2010 and 2015 with £27bn funding. According to Water UK, the £27bn investment is in addition to £80bn already invested by the Water Industry since 1990.
The announcement is thought to counter any resentment against the planned increase in water bills, despite companies making huge profits. An average increase of 2% above inflation every year in water bills will be too high, especially for the many already struggling to cope with the impact of soaring fuel prices.
Pamela Taylor, the chief executive of Water UK, claimed the average increase in water bills was less than 12p per week. She added the industry needs to invest £250bn for replacement of mains and sewers; it is currently spending £2 billion a year on renewal.
Investment can not be postponed indefinitely since it would result in collapse of services, which would annoy customers and would also damage the economy and environment. The industry highlights its accomplishments post-privatisation, and claims that the leakage rate of 228 litres per property each day has been cut down to 149 litres.
According to Regina Finn, chief executive of Regulator Ofwat, the industry’s draft business plan would be examined. The regulator would make sure that each plan takes due note of customer concerns and also meets the expectations of the Water industry.
Redrow and Bovis Homes, the two house-buliders of UK, finally resorted to cutting of 850 jobs and reviewing dividend policies as the property market continued to reel under the worst ever slump.
Redrow is cutting 450 jobs while Bovis Homes is asking 400 of its staff to quit. Nearly 40 per cent of workforce of both the house-buliders will be losing their only means of earning.
The worst slowdown has compelled Bovis to slash its dividend to 5p, down 20p from last year. Redrow has decided to review its dividend policy in order to cope up with dwindling revenues. In the past one week, more than 5,000 people working in Barratt, Persimmon, Taylor Wimpey and other construction companies, lost their jobs.
Bovis and Redrow reported sharp falls in their sales in the first six months of the year. Bovis’s sales were down by 32 per cent and the average price of homes fell to £167,500 from to £187,600. Redrow recorded fall of 19 per cent in sales and average price slumped to £157,000 from £159,900.
Neil Fitzsimmons, Redrow’s chief executive, was surprised at the rapid decline of the market for new and old homes, which according to him, was not experienced for very many years. The Bovis chief executive, David Ritchie, warned that fast emerging trends in the market will make it most difficult to estimate the likely net pricing of the group. Property analysts warned investors of further bad news from house-builders in the next few weeks.
Balfour Beatty, the UK’s biggest construction firm is outperforming in the business despite the global economic slump. It has assured its investors of strong trading this year. With £400 million of new orders in the last five months, Balfour’s total order book stands at £11.8 billion.
The firm operating in more than 20 nations struck a 330 million dollar (£150m) deal for construction of new highway in San Antonia, Texas. It is also involved, as the member of a consortium, in the construction of 445 million M74 extension in Glasgow.
Balfour’s success story unfolds further with its selection as the preferred bidder for M25 widening and maintenance project. Announcement of contract for the project, which involves addition of extra lane to 63 miles of orbital carriageway, will be made later this year.
Balfour is anticipating strong trading and order intake throughout the year in 2008, while the wider construction industry is struggling hard to contain rising costs and getting project fiancé.
Two latest surveys have projected very grim picture of the construction industry. The Chartered Institute of Purchasing and Supply (CIPS) mentions that construction activity slowdown rate was the fastest in 11 years last month.
Royal Institution for Chartered Surveyors (RICS) report that construction workloads were falling at their fastest rate since 1995.