| 7.10 The accreditation of operatives is also highly desirable, as a method of raising the skills base of the industry. The success over many years of the scaffolders accreditation system, or of the Institute of Plumbing, show that specific schemes to raise individual standards can be very effective. The industry itself is about to launch such a national system, the Construction Skills Certification Scheme, ultimately to be linked to achieved skill standards under NVQs. This initiative is greatly to be welcomed, and long overdue. It should receive Government endorsement and support. |
7.11 Concern has also been expressed to the Review about the wide extent of self-employment in the industry. Inland Revenue statistics for 1992 show that for the year 1989/90 (the latest analyzed) 1.18 million self-employed tax payers were engaged in building and contracting. That number includes contractors or working principals who are not part of the labour only subcontracting system, or working in gangs. It is thought by the Inland Revenue Staff Federation that self-employed subcontractors total about 700,00055.
7.12 I appreciate and respect this concern. Responsible firms in the industry say that such workers are really employed, but that their self-employed status reduces the overhead costs which they (or their co-ordinators where they work in teams) have to carry. But I do not feel that I can recommend a statutory return to employed status as a general rule. Individuals who wish to work on a self-employed basis should be permitted to do so. However, they must accept the risks which real self-employment involves. Treasury Ministers have already announced proposals intended to improve the effectiveness of the Tax Deduction Scheme, though it will take four years to introduce the new arrangements. If the effect is to bring about a return to directly employed status by those who were never really self-employed in the first place, that alone may help to improve training arrangements and closer supervision of performance on site. It may also reduce unfair competition for firms which discharge their statutory responsibilities for paying taxes and other charges.
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55 Source: Correspondence shown to the Review by the Transport and General Workers Union, figures relating to April 1993. The GMB also estimate that "perhaps 60% of the total UK building and civil engineering labour force is allegedly self-employed" (evidence, January 1994).