The buck stops here

Richard McCarthy is out to silence the sceptics. Forget what you thought about the Communities Plan – that it's biased in favour of the South-east, that it's either completely unworkable or truly visionary. In McCarthy's eyes, at least, the plan is already being translated into action.

"I want you to recognise changes that are occurring, that we are working much more closely across government. It's real," says McCarthy, portentously.

His evidence? One month after starting work as the ODPM's director general of sustainable communities, McCarthy can point to progress on a number of fronts: an evolving public-private partnership in the Thames Gateway; English Partnerships' rising profile; more work on modern methods of construction and moves to get urban development corporations up and running in the four growth areas.

But this rosy image is spoilt somewhat by the largest obstacle to the delivery of the Communities Plan: the planning system. All McCarthy can say on this subject is that the government is doing its best.

Heavy duty
McCarthy is an established figure in the housing world: he was chief executive of the Peabody Trust, the UK's largest developing housing association, for more than four years, and chair of the National Housing Federation for three. But his new task is an unenviable one. He must work with teams across the ODPM and other government departments to ensure the success of the four housing growth areas and nine market renewal pathfinders; when it comes to government targets to match housing supply with demand, the buck stops with him.

"I was in an organisation that was a delivery agent operating out in the field," he says. "Now here I am in government trying to create the right framework to facilitate delivery. We're getting through projects, we're making things happen. There's a real sense of urgency across the organisation."

His first full month at Eland House, the ODPM's central London headquarters, has been spent working out "the way we can make a difference". McCarthy is only too aware of how complex the Communities Plan is – it links education, transport and construction, among other issues – and that he must stave off charges of inaction. "I don't want people to be saying to me in two years' time: 'What are you doing? Nothing's happening.' We have to make sure that things happen much sooner."

McCarthy is looking to regeneration quango English Partnerships to provide many of the "quick wins" that will silence criticism. He singles out the partnership announced at the end of last month between EP and housebuilder Bellway Homes as a key step to kick-start the Thames Gateway. The joint venture will be responsible for gaining planning consent and creating infrastructure for 10,000 homes, built within 15 years. If successful, McCarthy believes the model could be used throughout the UK.

"It's an important project on two levels. The first is that we're using our resource – not our land, our financial resource – to share risk and to have a real influence over a major piece of urban development. By doing that we'll bring forward not just public sector but significant private sector investment.

"The second strand is that if successful, we'll share in the upside. We're taking equity in the deal, not just giving grants."

For McCarthy, the partnership's importance goes well beyond the homes that will be built. It will, he hopes, encourage a more creative mindset towards investment. "We need to think about the way our money gears into other investment. We're not going to create the market on our own: we've got to provide the conditions and support that encourage market responses that work.

"We also need to think about ways we can capture the value that arises. If you are going to share risk, it's perfectly reasonable that you share the upside. The resources that come back we can put into something else."

More can be expected from EP over the next four months, he says. He alludes to some "important site acquisitions" in the pipeline – presumably in the growth areas – although he won't say where. But he will say: "EP's role will become more visible because of its tangible programme of bringing in more brownfield land, bringing on its key-worker strategy and turning words into action."

He predicts a bright future for off-site manufactured housing – although he prefers the phrase "modern methods of construction". He did as much as anyone else to revive prefab so it's no surprise that he is a fan, but he does acknowledge that he has to help make it more cost-effective.

"There is a cost issue. But a lot of that you'd call the research and development phase. When you think of the scale of some developments that are coming up, they may lead people to say, 'right, we know these bits work, we'll try to do them on a scale'. Then you'll get benefits of time, quality and cost."

Another of McCarthy's early priorities is to help the urban development corporations spring into action. The board of Thurrock's UDC has just been sorted out. Will McKee, former chief executive of Merton council, has been appointed chair and McCarthy hopes to have a chief executive in place "very shortly". A consultation has been launched on the London UDC, and another is expected shortly in Northampton.

"We anticipate the London UDC will be established by next May or June. When it is, I want to see a chief executive in place quickly and a chair already in post, so that six months beyond we are seeing things happening on the ground."

An imperfect plan
McCarthy is reluctant to go into detail about the findings of Kate Barker's report on housing supply or next year's comprehensive spending review. Nor will he say if he stands to take over extra responsibilities from Genie Turton, the ODPM's director general of housing, homelessness and planning, who resigned last month. "I'm not involved in internal discussions about change," he says.

He has, however, been party to controversial discussions within the ODPM about planning reform. He is aware of the anger with which some councils and housing associations have reacted to last month's proposals to give developers the choice of paying a charge rather than negotiating a section 106 agreement. Many see section 106 as vital to delivering affordable homes.

"Whatever people think about the individual ideas and proposals on section 106 and optional charges, they are a genuine attempt to improve the operating framework. If people don't like what they see then they should let us know. Give us an alternative. Carping isn't enough."

Poacher-turned-gamekeeper McCarthy clearly still feels an attachment to the sector. He sports an "In Business for Neighbourhoods" badge on his lapel, a symbol of the goodwill that prompts him to offer a piece of advice, and says that if he were still a chief executive, "I'd make sure I was giving a constructive critique rather than a negative one".