AN EXTENSIVE redevelopment of Wales’ largest fishing Port, Milford Fish Docks, is getting under-way this week in a project to modernise facilities and revitalise the town’s heritage, which has links to the fishing industry going back 125 years.
The Port of Milford Haven is building new fish processing units, offices and facilities for the inshore fleet as part of its wider plan to boost the industry and strengthen the economic ties between the town and fishing industry. It is the second stage of the planned £70m redevelopment of Milford Dock that the Port hopes will make the area a top waterfront destination for locals and visitors alike.
The project, backed by the European Fisheries Fund through the Welsh Government, will enable the existing sheds to be replaced with new facilities and workspace which will enable processors to add value to seafood landed, creating jobs and investment. Jeff Teague from the Port of Milford Haven is overseeing the project. “It’s very exciting to see something that has been a long time in planning finally get underway.
Few people realise how vibrant Wales’ biggest fishing port actually is. We want to make the industry more visible and ensure it creates greater benefits for local businesses. Just as importantly we want to make sure everyone can get a taste of what is landed here, if they want it!” Contractors WB Griffiths, from Haverfordwest, will be carrying out the works, expected to continue until Spring next year.
To make way for the new facilities, two buildings, known locally as the F Shed and Packaway buildings, will be removed as part of the works. Jeff Teague says contractors will do everything they can to ensure disruption is kept to a minimum. “People should expect some traffic and pedestrian restrictions during the works, but we will keep talking to local stakeholders to make sure everyone is kept up to date with what is going on. If anyone has any concerns however, they should call the Port’s estates division Quayside Estates on 01646 696383.”
Materials’ price rise squeezes SME builders
MORE THAN half of small building firms say that rising material prices are squeezing their margins and the same percentage have had to pass these price increases onto consumers, according to the latest research by the Federation of Master Builders (FMB).
Small and medium-sized (SME) building firms were asked which materials are in shortest supply and have the longest wait times. The average results were as follows (in order of longest to shortest wait times):
- Bricks were in shortest supply with the longest reported wait time being more than one year;
- Roof tiles were second with the longest reported wait time being up to six months;
- Insulation was third with the longest reported wait time being up to four months;
- Slate was fourth with the longest reported wait time being up to six months;
- Windows were fifth with the longest reported wait time being more than one year;
- Blocks were sixth with the longest reported wait time being up to four months;
- Porcelain products were seventh with the longest reported wait time being more than one year;
- Plasterboard was eighth with the longest reported wait time being up to two months;
- Timber was ninth with the longest reported wait time being up to two months;
- Boilers were tenth, with the longest reported wait time being more than one year.
SME building firms were also asked by what percentage different materials have increased over the past 12 months. On average, the following rises were reported:
- Insulation increased by 16%;
- Bricks increased by 9%;
- Timber increased by 8%;
- Roof tiles increased by 8%;
- Slate increased by 8%;
- Windows increased by 7%;
- Blocks increased by 7%;
- Plasterboard increased by 7%;
- Boilers increased by 7%;
- Porcelain products increased by 6%.
The impact of these material price increases includes:
- More than half of construction SMEs (56%) have had their margins squeezed, this has gone up from one third (32%) reporting this in July 2017;
- Half of firms (49%) have been forced to pass material price increases onto their clients, making building projects more expensive for consumers, this has gone up from less than one quarter (22%) reporting this in July 2017;
- A third of firms (30%) have recommended that clients use alternative materials or products to those originally specified, this has gone up from one in ten reporting this in July 2017;
- Nearly one fifth (17%) of builders report making losses on their building projects due to material price increases, this has gone up from one in ten reporting this in July 2017.
Brian Berry, Chief Executive of the FMB, said: “Material prices have rocketed over the past year. The reason for this could include the impact of the depreciation of sterling following the EU referendum still feeding through. High demand due to buoyant international markets could also be contributing to price increases. What’s particularly worrying is that when prices have increased mid-project, almost one fifth of builders have absorbed the increase and therefore made a loss. Also, if material price increases weren’t enough of a headache for building firms, they are also experiencing material shortages with wait times ticking up across a range of materials and products. Worst case scenarios include firms waiting for more than one year for a new order of bricks.”
Berry continued: “The rise in material prices is not just a problem for the country’s construction firms – it is also a problem for home owners. Half of firms have been forced to pass these price increases onto their clients, meaning building projects are becoming more and more expensive. This problem has worsened recently with more than twice as many firms passing material prices on to their clients now compared with nine months ago. What’s more, home owners should be prepared to have to use alternative materials or products to their first choice. One third of firms have recommended that their clients should use alternative materials or products to those originally specified. Now more than ever, it’s important that builders and their clients keep the lines of communication open in order to stay within time and within budget. Specified products or materials may need to be swapped for alternatives or clients will need to accept the additional cost.”
Berry concluded: “We are calling on builders merchants to give their customers as much advance warning of forthcoming material price increases or wait times as possible so that firms can warn their customers and plan ahead. We are also advising builders to price jobs and draft contracts with these material price rises in mind. The FMB’s latest State of Trade Survey shows that almost ninety per cent of building firms are expecting further rises over the next sixth months. This makes quoting for jobs difficult but if builders flag the issue to their client from the outset, and include a note in the contract that prices may be subject to increases, they shouldn’t be left short. What we don’t want is for the number of building firms making losses on projects to increase as this could result in firms going to the wall. A large number of collapsing construction companies will have a terrible knock-on effect in the wider economy.”
Superfast roll out by councils is superslow
AN INVESTIGATION by broadband comparison website, BroadbandChoices, which analysed almost four hundred UK council websites and Ofcom performance statistics, has revealed that many councils have missed their own targets and deadlines for improving broadband connectivity in their areas.
And only one of Wales’ 22 councils – Newport – has hit the target; while nine have no plan at all.
The research reveals that many councils fall drastically short of targets set to provide superfast connectivity. Just 12 out of the 391 UK Councils analysed have reached 95% levels of superfast broadband penetration or higher, the UKs target. It also revealed that only 7 councils in the UK have met the targets for broadband speeds they set themselves.
The latest analysis from BroadbandChoices highlights how much work must still be done by Councils to provide sufficient connectivity to all homes and businesses in the UK, regardless of location.
With broadband speeds affecting small businesses, rural communities and those who work from home, internet speeds have a significant impact on productivity and can cost businesses money, time and even customers or clients and are costing businesses thousands in lost productivity.
The average percentage of premises with superfast broadband speeds has been revealed to be just 58% based on Ofcom’s report – nearly 40% lower than the 95% UK-wide target. The research also reveals that almost a quarter (24%) of councils don’t have a publicly available strategy when it comes to broadband.
After reviewing 391 council plans for broadband outlined on each council’s website and comparing them with actual broadband performance levels as compiled by Ofcom2 the research also revealed that the percentage of premises with access to superfast broadband ranges from just 11% in some jurisdictions, to 98% in others. This dramatic discrepancy in connectivity means some council areas have 87% fewer homes able to access superfast broadband yet no clear plans in place to improve performance.
The research exposes how the majority of councils in the UK under-estimated how long it would take to make superfast broadband available to premises within their borough. Sixty-seven councils were found to have failed to meet the targets they set themselves within the timeframes they identified.
The findings suggest that many councils in the UK have failed to make superfast broadband a priority. Surprisingly, 122 councils have information about plans to extend broadband penetration on their websites but exact details regarding reach and performance are inadequate. Broadband Choices research found vague claims in an unquantifiable format or without a specific target date for completing the work. Meanwhile, many other councils failed to even reference broadband on their websites.
The volume of ongoing council plans demonstrates that many councils are still working towards achieving widespread connectivity in their areas, and that more work still needs to be done to reach the UK Government target of 95% coverage for superfast broadband, despite some reports that it has already been achieved.
Vix Leyton, home comms expert at Broadband Choices said: “This study demonstrates that while many UK councils have active plans in place to improve connectivity for their residents, very few have succeeded in actually meeting their targets. Meanwhile, areas with the most need have councils who are failing to recognise good internet connectivity as a strategic priority.
“Whilst our research gives a broad stroke picture of the UK by comparing council intention to reported performance, a lot of consumers are still in the dark when it comes to the actual service and speed they will personally receive until after they have signed up for a deal. Broadband Choices has been lobbying for some time to inform consumer purchasing, using things like the postcode checker tool, to ensure that in the face of different reports about performance they will get a clear and honest picture of the position their home or business is in.
“Access to technology is a staple requirement and reliance on high-quality connectivity will only increase. That’s why we’re helping to educate consumers so they are better aware of the broadband available in their area, and what plans their local Council has in place to keep up with technology. Councils should have their plans and target deadlines clearly outlined on their website for constituents to see, and if targets haven’t been met this needs to be addressed and reviewed, and residents are entitled to know why.”
“The lack of superfast broadband has a combined impact on productivity and communication, which is a real concern, translating into a loss for small businesses, and communities. Councils need to do more to improve connectivity to protect the productivity of the UK workforce.”
Welsh Government confirms vacant land tax plan
THE WELSH GOVERNMENT will put forward the vacant land tax idea to test the Wales Act 2014 powers, Cabinet Secretary for Finance Mark Drakeford has announced.
The Cabinet Secretary will set out the next steps for proposing a new Welsh tax as part of the tax policy work plan for 2018.
Since announcing a shortlist of 4 new tax ideas alongside the draft Budget in October, the Welsh Government has been examining the case for each of these.
The 4 tax ideas were: a social care levy, a vacant land tax, a disposable plastics tax and a tourism tax.
Although the vacant land tax idea will be used to test the Wales Act powers, work will also continue on each of the other 3 tax ideas.
The decision to take forward the vacant land tax idea follows engagement with stakeholder organisations, the public and across government.
A vacant land tax has been chosen both because it could help to incentivise more timely development, and because it could help prevent dereliction and aid regeneration.
Professor Drakeford said: “Housing is a priority for the Welsh Government. A tax on vacant land could prevent the practice of land banking and land not being developed within the expected timescales.
“The Republic of Ireland vacant sites levy provides a useful starting point for how a vacant land tax could work in Wales.
“The existing model in the Republic of Ireland and the relatively narrow focus of the tax make this the most suitable of the 4 shortlisted ideas to test the Wales Act.”
The Irish measure, announced in their government’s 2018 Budget, will mean that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019.
If land owners continue to hoard land in 2019, they will pay 7% in 2020.
When the Welsh Government announced it was considering such a measure in October 2017, before the UK Government said it was considering a similar plan, the House Builders’ Federation raised the spectre of developers decamping en masse to England with their large projects. That threat, such as it was, has receded but the Federation of Master Builders is still concerned.
Speaking to BBC Wales, Ifan Glyn of FMB Cymru said: “If there’s a tax that’s introduced that can focus solely on land banking for financial reasons to maximise profits, we would absolutely agree with that.
“Our issue is we don’t see how this tax can differentiate between land that’s been banked for financial reasons and land that isn’t being developed or stalling for reasons outside the developer’s control.”
A further wrinkle in the system was identified by Dr John McCartney, Director of Research at Savills Ireland.
Speaking about what were then only proposals by the Irish Government to impose the vacant site levy, he said that increasing the vacant site levy to 7% could amplify “boom-and-bust cycles” in the construction sector.
Dr McCartney said that land is a raw material for developers and it is natural for them to carry a stock of development land.
“No developer will now carry a land-bank in a slow market. This means when a recovery follows developers will spend the early years on site assembly rather than the house building they could and should be doing,” he explained.
Responding to the announcement, the Welsh Conservative Shadow Finance spokesperson, Nick Ramsay AM said: “From the outset, Welsh Conservatives have opposed the ludicrous proposal for a tourism tax in Wales, one which would cause serious harm to businesses across the country.
“While we are pleased the Welsh Government has listened to us and decided against taking this idea forward, once the mechanism has been tested, we would not expect the Labour Government to return to the table with this proposal, one which has been widely criticised by the industry.
“Our vigorous campaign will continue until Labour’s Finance Secretary consigns this ludicrous proposal to where it belongs: the bin.”
Commenting on the decision to bring forward a potential vacant land tax, Mr Ramsay added: “On the surface, we welcome the fact that, as in England, the Welsh Government is exploring the viability of a vacant land tax but we await the full details of this proposal from the Finance Secretary.
“However, an important distinction must be made between land held for legitimate technical reasons such as detailed planning or a lack of skills and materials, and land which is held for purely commercial speculation.
“Speculation distorts the main purpose of releasing land for much needed development and it will be vitally important to fully consult with the sector to ensure the right balance is struck.”
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