Small firms minister Nigel Griffiths was also handed the construction portfolio in Tony Blair's June reshuffle. Will his wide-ranging remit result in joined-up government? In an exclusive interview with EMC, Griffiths talks to Simon Bartley.
Nigel Griffiths is passionate. He has been passionate about SMEs since he became small firms minister in 2001 and is now passionate about construction, the portfolio he picked up in the June reshuffle. While some parts of the industry took exception to what they saw as the downgrading of construction within government when Brian Wilson was replaced by Griffiths as the minister in charge, a rebuttal to such views by ECA director David Pollock and others from the m&e world has sat well with Griffiths and seems set to ensure that while he holds the portfolio a broader approach to building services by the DTI is likely.

Griffiths is no stranger to the industry. His first job was as the project manager of "the internal demolition and refurbishment of an office social block in Edinburgh", where "I had to work with the architect and builders to bring it in on time and on budget. I learnt about sky hooks and other terminology designed to humiliate the uninitiated and so, 20 years on, I'm in the position of people not being able to pull the wool over my eyes."

It is typical of Griffiths that the stories he tells feed back to his role as a constituency MP – he has been MP for Edinburgh South for 16 years and takes the role very seriously. Alternatively the stories relate to his time as small firms minister, a role that he retains along with that of trade minister responsible for promoting British industry abroad.

He understands the value of building services and the distinction between building services and construction. He is sensitive to the accusation that his department is more likely to listen to construction companies and only relate to the world of building services in get-togethers such as the Strategic Forum for Construction. His officials, he counters, "say that building services [representatives] are very important people with very important views," and adds, "I'll be as happy to meet them as I am the concrete association or others."

Griffiths has positively leapt at his new role, a role that has seen him well briefed. He easily quotes the figures that define his new responsibility: "a sector that is of the order of 10% of our national wealth every year worth almost £100 billion... employing over 2·5 million people…one of the most important sectors in the economy." As he reels off the figures he visibly twitches with excitement at having been given the job as construction minister. It may be early days but it appears that this early flush could be the prelude to a sustained passion for the sector – a sector that he seems intent to woo with the energy for which he is renowned.

On the plethora of policies and initiatives that abound across the industry he is beginning to make up his mind as to their likely success or otherwise, and getting a feel and a grip of the direction in which he wants to go.

Retentions are a 20th century anachronism… I'll consider myself a successful construction minister if within a decade people are saying: ‘What? What’s a retention?’

On retentions, a subject close to any building services company's heart, he is typically frank: "Retentions are a 20th century anachronism. I'll consider myself a successful construction minister if within a decade people are saying: 'What? What's a retention?'" He cites the example of Boots, who do not deduct retentions on their buildings because "they rely on their contractors to do a first-rate service, and when a blue-chip company like Boots can do it so can everybody."

In regard to health and safety, Griffiths is uncompromising about the number of deaths and injuries on site (71 deaths in the year to March 2003 and 27 since April), all of which he believes are avoidable. He admits that of all the things that the job brings this is the one over which he is most likely to lose sleep. However he points out that: "Our health and safety on building sites is one of the best in the world…and I don't believe that anyone wants to cut corners if it costs lives." He wants to work with the industry to look at how we eliminate avoidable deaths without a blame culture and without the need for the charge of corporate manslaughter.

He is aware of the procurement issues surrounding the numerous types of central government and local government systems that lead to only the very largest building firms winning contracts and local medium and small companies being edged out of contracts. He is working with Paul Boateng at the Treasury and Nick Raynsford at the Office of the Deputy Prime Minister, reviewing central and local government procurement to showcase some of the really good examples, and with government departments to "make them realise that big doesn't necessarily mean better value for money, and that there are medium-sized and small companies that can deliver that ideal service at the right price and at high quality."

On the Quality Mark, Griffiths is equally focused. His message is very clear, and he repeats it often. While he is looking at how he can boost the success of the Quality Mark he also seeks to reinforce the message that: "If you employ someone you meet in a pub, don't think that the Government is going to lift a finger to help you if you need redress." He is aware that in Europe there is now a move, a move driven in part by British industry, to reduce vat on repairs and maintenance; an area where the black market economy is given a helping hand to thrive and cause distress to consumer and law-abiding contractor alike. However, while accepting that vat at 17·5% is part of the problem he doesn't see it as the only, or the most major, one and returns to the basic premise that it is the issue of "the pub" that is the real one to be tackled.

On skills, Griffiths is an advocate of direct employment and of Modern Apprenticeships, but understands the peculiarities of the construction labour force, acknowledging that agency and "foreign" labour exists. Indeed he quotes the oft-repeated phrase that "the strength of the British economy is the flexibility of the labour market," and accepts that "agency labour has a valuable part to play." However he goes on to add that where British companies can build up their workforce he believes that it makes them better suited to compete for contracts. In regard to new entrants to the workplace he is clear: "I feel strongly that going to university is not the only option – I want construction to be one of the school leavers' first choice vocations."