Ian Tyler: the Government has been too slow in making decisions.
Balfour Beatty warns of 'more cuts for 2013'
Published: 11 December, 2012
LONDON: Balfour Beatty chief executive Ian Tyler said his group will cut jobs and that the company's supply chain will also have to tighten its belt in 2013. Speaking on the ITV News Business Club last night, where business leaders were invited to grill business secretary Vince Cable, Mr Tyler cited government uncertainty as the key reason for the cuts.
Despite politicians' promises to get infrastructure going, Mr Tyler felt the Government has been too slow to make decisions. And that, he acknowledged, will mean layoffs at his company and in the supply chain.
Balfour Beatty is the 15th largest company in the world. The 650 job losses it made as part of a restructuring programme this year also closed 35 of the company's offices.
The group now has plans to cut its suppliers from 15 000 to 10 000 in the New Year.
Mr Tyler said: "The reality is that we hear a lot about government commitment to growth, but if you look at the construction sector, we will have lost a significant number of jobs in the last 12 months and 2013 is going to be a lot worse.
"There is going to be less physical infrastructure created next year and there are a number of reasons for that.
"The Government's spending in infrastructure is reducing and there is a lack of confidence in the private sector. Why we will have to cut back next year due to a lack of certainty in big infrastructure projects, particularly in the energy sector."
Business secretary Vince Cable said: "Construction is the sector of the economy that is doing worst. And that is not just bad for people doing the building, it is also bad for the people making steel, glass, cement and bricks.
"The thing I believe that would make a big difference is building lots of houses, but these big infrastructure projects take years of planning and government has to do what it can to speed things up."