CE Marking (Structural Steelwork)

Stephen Williams Excerpts

Wednesday 26th February 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Stephen Williams)]

Diolch, Mr Williams. Prynhawn da—good afternoon to you. I congratulate the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) on securing the debate. We were not entirely sure what points he was going to raise. I gather from his introductory remarks that he was speaking on behalf of at least two construction steel producers in his constituency: T & D Cruickshanks from Kirkintilloch and Highland Galvanizers from Cumbernauld. We almost had the full set; we did not get a company from Kilsyth, but the fact that two of the three communities in the hon. Gentleman’s constituency contacted him about the matter demonstrates its importance to the firms that he represents.

I have a comprehensive brief to get through, and I believe that it anticipates all the points that the hon. Gentleman made. The area is complex, as I am sure that he realised when he briefed himself up on it. The construction products regulation is European Union legislation, which came into force across the European Union on 1 July 2013 except in the construction steel industry, which has until 1 July 2014. That legislation is applicable across all member states. It is a free trade measure that requires construction products covered by a harmonised product standard to carry the CE marking. The regulation also requires manufacturers to provide robust and reliable information in a consistent way, which benefits industry and reduces potential barriers to trade.

There are four main elements in the regime, which I will outline briefly. First, there is a suite of harmonised technical specifications that exist to establish a common approach across Europe to product standards. Industry is responsible for developing those standards, and business and the British Standards Institution play an active part in their development. Secondly, there is a requirement to affix CE marking and to provide a declaration of performance to accompany the product, setting out how it performs against the essential performance characteristics in the standard.

Thirdly, there are agreed systems to ensure the accuracy and reliability of the performance set out in the declaration of performance, which are called the assessment and verification of constancy of performance—I said that this was a complicated area. Those systems reflect the level of risk associated with the product and the potential for performance to vary. Finally, there is a framework of notified bodies, which are independent third-party organisations involved in the assessment and verification of performance. That package is designed to provide certainty for industry and remove barriers to trade while ensuring that proper safeguards are in place relating to safety.

There are more than 400 harmonised standards relating to construction products. All those, apart from in the area of construction steel, came into force on 1 July 2013. Some in the industry expressed concern about the introduction of those regulations last year. However, we have since discovered that there were significantly fewer practical problems than were feared in the other 399 areas last year.

The standard on structural steelwork is covered by BS EN 1090-1, which deals with products such as piles, columns, beams and stairs. Unlike most other construction products, the CE marking of fabricated structural steel products is not required until July 2014. That means that the industry will have had three and a half years since the publication of that standard to prepare for its implementation. The European Commission gave the industry that additional 12 months’ leeway because it recognised that there were a large number of small steelwork fabricators who would benefit from the extra time. It was anticipated that the sector might need a little more time to adapt and prepare.

The hon. Gentleman asked several questions about how prepared industry should be and whether the changes had been publicised. My Department, which leads across the UK for this area, has been working with a wide range of organisations to ensure that industry is aware and prepared. Both my Department and the Department for Business, Innovation and Skills have produced a range of information about what is required under the regulations, and there is further information and guidance on the planning portal.

However, industry is also responsible for raising awareness, and trade associations have been at the forefront of that work. I have with me the brochure produced by the British Constructional Steel Association, with assistance from Tata Steel, in July 2013—just as all the other construction standards were being introduced—to publicise further the changes that would be required this year. Larger firms in the industry, such as Tata, have played an active role in raising awareness right across their supply chain. I gather from the hon. Gentleman’s remarks that T & D Cruickshanks and Highland Galvanizers will be involved in the supply chain for larger users of their product.

Trading standards in England, Wales and Scotland will be responsible for providing advice at a local level to businesses, and they will police the regime once it is in place. In answer to a specific question asked by the hon. Gentleman, not only have officials from my Department arranged events for trading standards departments in English councils, but we have done the same for Scottish councils in general. An event was held in Motherwell in April last year to enable Scottish councils to prepare in plenty of time for the changes that will take place this year.

The hon. Gentleman also made some points about costings. I understand that the industry has expressed concerns about the costs of implementation, which principally result from the need to involve a third-party notified body to establish the performance of the product and ensure that systems are in place to maintain performance. The extent of the costs depends on the product type and generally reflects the fabricators’ existing quality systems, how involved the notified body is in establishing performance, and the ongoing monitoring of production.

For structural steelwork firms, the safety-critical nature of the product means that there is not only an initial inspection by the notified body, but subsequent routine checking of the factory production control. Many larger firms will already incur similar costs through their voluntary adoption of third-party quality control schemes. Nevertheless, we recognise that for small firms, such as those in the hon. Gentleman’s constituency, incurring such a cost could be a more significant additional burden. However, the costs arise as a result of the standards that have been developed by the industry itself and determined as proportionate to the level of risk involved. Of course, some costs may be offset against future efficiency savings resulting from quality improvement—for example, by avoiding mistakes because compliance processes are in place.

Small businesses have clearly made representations about assistance. I can speak for the situation in England, where BIS funds the manufacturing advisory service, which has been running workshops with small manufacturers. It has not only been raising awareness but providing financial assistance in the form of grants of up to £1,000 for consultancy support to help small manufacturers to comply. We understand from the Welsh Government that similar help is available in Wales—in fact, according to the figures I have found, it looks more generous. I believe that no such assistance has been provided by the Scottish Government, so I suggest that the hon. Gentleman raises the issue with his constituency counterpart in Scotland who will no doubt want to raise it in Holyrood.

The other key issue raised by the hon. Gentleman was about whether there is enough time for companies to comply with the new standard. As I have already mentioned, come July there will have been three and a half years for companies to prepare. I understand that there are also concerns about the number of bodies that can provide certification. Currently, six notified bodies are able to carry out the third-party tasks for checking the factory production control systems of structural steelwork fabricators. Officials in my Department are fast-tracking another notified body and will do the same for any other notified body that comes forward—provided, of course, that there is no risk of standards slipping as a result.

The hon. Gentleman said that Cruickshanks and Highland Galvanisers were worried that if they did not comply by 1 July 2014, business would effectively cease and operations would be suspended. There is nothing that any EU member state can do to change that date—that would be unfair to firms in the United Kingdom that have complied with it, and also to the other member states of the European Union single market. However, the policing of the regime from 1 July will be down to local authority trading standards bodies. If they discover that a firm has not complied by that date, or, indeed, if they have been notified already as a result of this debate that some firms anticipate not being able to comply, in the first instance we would expect trading standards to work with such firms and seek an explanation of the problems they are encountering.

At this point in the process, we can safely say that rumours that firms will be closed down are scaremongering. Perhaps this debate will give more publicity to the situation than would otherwise be the case. There is still plenty of time for conversations with trading standards to ensure that compliance problems and sanctions do not arise. Nevertheless, the important point that I want to get across is that all firms must get on with the process. There has been plenty of time for the rest of the construction products sector—the deadline passed last year, since when compliance problems have not been reported to us. We would urge structural steel manufacturers to adopt the same approach.

Regulations are part of an approach that seeks to promote trade and benefit business while ensuring that we have safe construction products. I am sure that the hon. Gentleman and I would be united on that, as well as on ensuring that small firms in his constituency and elsewhere in the United Kingdom do not find themselves unable to comply. There is still time for conversations with local authority trading standards officers, and with the British Constructional Steel Association itself, to find a clear way forward.

Question put and agreed to.