Opinion of the Economic and Social Committee on the 'Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on: The Competitiveness of the construction industry` (98/C 214/06)

On 6 November 1997 the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 1 April 1998 (rapporteur: Mr Muller).

At its 354th plenary session (meeting of 29 April 1998), the Economic and Social Committee adopted the following opinion, with 117 votes in favour and two abstentions.

1. Preliminary observations

1.1. The Commission's communication deserves to be given particular attention by the Committee for a number of reasons: it deals with the competitiveness of an important sector of the EU economy () characterized by a high level of labour intensity and the presence of an impressive number of small and medium-sized enterprises (SMEs); it highlights multifarious aspects relating to all stages of the construction process; finally, it is submitted at a time when there is a clear need to improve competitiveness throughout the EU, when unemployment is the chief issue of concern, when structural changes have to be assessed and planned against the background of the single market and a forthcoming enlargement, and when there is thus an urgent need to harness the full potential for dynamic economic, social and technical change and progress.

1.2. The Committee supports the Commission's decision to not just list the issues which need to be reviewed and set out a broad range of possible courses of action but make recommendations in respect of four key objectives (); these recommendations are to be fleshed out with a view to being incorporated in an action programme. In this context attention is drawn to the importance of the appended lists of recommended specific action linked to the goal of improving competitiveness.

1.3. The Committee draws attention to the considerable diversity, complexity and scale of the issues and actions listed. The Committee recognizes the great many correlations involved; these correlations are both horizontal and vertical, actual and potential, interactive and divergent. In view of these correlations, formulation of a consistent action programme at EU level may appear to be a difficult task. The Committee nevertheless considers that a programme should be drawn up, and calls upon the Council: a) to focus on fundamental reference points in the light of the four key objectives and the proposals already put forward, and b) to set out guidelines for an action programme which is realistic, provides motivation and is capable of being implemented in stages at various levels of responsibility, with the aim of enhancing national and EU cohesion.

1.4. From this standpoint, and in view of the fact that the Commission has widely consulted the economic and social interest groups directly concerned, the Committee gives its general approval to the communication. The observations set out below constitute, in particular, signposts and directions which it would ask the Commission to take into consideration in its subsequent work, for which a timetable should be drawn up.

1.5. In addition to its recommendations on the four key objectives, the Committee would draw attention to Chapter 4 of this opinion setting out the conclusions. These conclusions are not exhaustive. They are addressed to the Council and the Commission, with a view to early establishment of the framework and guidelines for the future action programme.

1.6. The Commission takes care to define 'the construction sector` () for the purposes of the communication. The definition implies that this sector directly involves a considerable number and variety of occupations and socio-economic groups. These groups are therefore entitled to be appropriately consulted and should take part in planning and implementing the measures included in the action programme. This right and obligation in no way detracts from the role, powers and responsibilities of management and labour, or their respective organizations, directly involved in the everyday operation of the enterprises concerned.

2. Elements of competitiveness

2.1. The communication's description of competitiveness factors and the associated problems highlights the linkage between the various players in the construction process and between the sectoral policies pursued by the EU and its Member States. The description also highlights the case for ensuring fair application of the subsidiarity principle, in the light of sectoral, national and regional particularities. The description also provides useful indications as regards measures which can or must be adjusted, strengthened, introduced or focused with respect to the construction sector - and its back-up bodies, the role of which should not be underestimated.

2.2. There is no doubt that the factors which determine competitiveness - as identified in the Commission's communication - are a highly intricate mix. The Communication describes these factors and analyses them in linear form in ten sub-sections (4.1 to 4.10). The Committee supports this approach. It also endorses the Commission's evaluation of the many different aspects of these elements.

2.3. The Committee endorses the ten sub-sections to a very large extent; there is therefore no reason, at the current stage of the Commission's work on this matter, to put forward additional comments. This stance is further justified by the fact that the elements of competitiveness and their actual or potential impact are further dealt with in the section of the communication which deals with key objectives, specific actions and recommendations. The present opinion concentrates on this section of the communication.

3. Recommendations; specific measures and proposals for an action programme

3.1. The communication makes it clear that it is necessary and possible to draw up a well-structured, forward action programme which specifies measures and takes account of:

- measures already undertaken and their impact;

- the inter-actions - frequently not clearly perceived - between policy on the construction sector and a variety of EU, national, regional and local policies;

- the wide range of remits, powers and capacities of the public and private bodies involved;

- the scope for adjusting to (a) the market situation, (b) market trends, and (c) the balance between supply and demand;

- the need to be constantly seeking ways of combining effective action with horizontal and vertical coordination and cooperation, which provide a new impetus to the whole of the construction sector.

3.2. The approach pursued by the Commission may well seem ambitious given the complex nature of the issues involved. Such a step is however vital in view of the issues at stake. The Committee also believes that the establishment of the four key objectives will make it possible to achieve convergence between the various aspects and to channel the action taken.

3.3. The Committee is pleased to note that the Commission has indicated its intention to draw up the action programme (to be decided upon by the Council) in collaboration with representatives of the construction sector. The Committee takes the view that this process will, of necessity, involve consulting representatives of all the categories of enterprises concerned, including SMEs, and representatives of the workforce. Advantage should be taken of a number of traditional forms of collaboration and consultation engaged in by many small construction enterprises. The Committee, for its part, wishes to be involved in the consultation procedure.

3.4. Once the fields of action have been identified, a watching brief should be kept on measures taken and their impact. Given the need for effective monitoring, the proposed action programme should, from the outset, spell out how consultation and cooperation is to operate within the framework of existing decision-making structures. Appropriate machinery for coordinating policies and action and for evaluating results is clearly a prerequisite for an effective integrated action programme.

3.5. Before setting out its views on the four key objectives and the proposed measures, the Committee draws attention to the two general aspects described below:

3.5.1. In its communication the Commission raises the issue of the image of the construction sector. The Committee recognizes the shortcomings in this respect and their damaging impact; it thus obviously supports remedial measures. The Committee does however take the view that, in addition to targeted measures such as information and awareness campaigns - which should primarily be carried out at national and sectoral level - there is a need for an overall integrated approach to this problem, embracing all the key objectives described in the communication.

3.5.2. Against the background of the wide range of problems relating to competitiveness and the many changes which will have to be made in respect of structures, means, qualifications, resources, procedures and mindsets, the Committee highlights the need to ensure that there is a fair and constructive dialogue with all the players in the construction sector - in particular, the social partners - at both EU and national levels. The Committee also firmly believes that improved forms of dialogue, cooperation and consultation with all the partners concerned will facilitate the formulation of new ways ahead (relating to aspects such as qualifications, quality, the construction process, codes of conduct, coordination, investment, work organization).

3.6. First objective: Development of a coherent policy on quality

3.6.1. This objective, which is a guiding principle of increased competitiveness, has a wide range of components: precise description of project goals and planning; procedures and planning stages; the establishment of technical clauses and contractual rules; conformity with specifications, estimates and deadlines; the observance of standards and rules in respect of durability, architecture, safety, public health, the environment, aesthetic considerations, urban planning, etc. Attainment of these quality elements hinges upon qualifications, know-how, expertise and experience in the field of technology, finance, management, organization, coordination, cooperation, culture and labour-market aspects, relating, inter alia, to working conditions, job-stability and the utilization of the ability of the individual.

3.6.2. Whilst it may be possible to define 'quality` and how it can be achieved, it may well be difficult to ensure the coherence of this policy on quality. In the Committee's view the way to achieve a coherent policy is to take account, when introducing the action programme, of the various factors which have a bearing on the other key objectives set out. These factors include: the ways in which enterprises obtain their qualifications and the scope for qualifications; conditions of access to the profession; the recognition of employee qualifications; employment conditions; conditions in respect of access to markets; the legal framework; the transparency of contracts; possibilities as regards the provision of information and the transfer of technology; the ability to take account of customers' expectations. The Committee would refer here to the views set out in its own-initiative opinion on sustainable development in building and housing in Europe ().

3.6.3. When considered from this broader standpoint, the actions recommended in the appended quality table do not, at this stage, require further observations by the Committee.

3.6.4. It should, however, be pointed out that the broad, global concept of 'quality`, embraces, in addition to technical standards, a number of other aspects, such as health, safety, energy, new technologies, new forms and methods of construction, and the environment. These aspects will challenge the powers of imagination and innovation of enterprises and other players in the construction process. Generally speaking, the elements of competitiveness described in chapter 4 of the Commission communication are also means of improving quality. The example of worker qualifications, an aspect which will be dealt with in point 3.8 below, may be cited here as an example.

3.6.5. The distinction drawn in point 4.1 of the Commission communication between 'production process quality` and 'integrated management quality` is clearly important. It may be assumed, however, that, as a general rule, one or other of these approaches or systems will be applied in light of the prevailing circumstances, which frequently differ. It is nonetheless essential to uphold and promote: the concept and practice of dismantling barriers and achieving real cooperation between the various parties involved in the construction process; the establishment of particular forms of integrated organization and management; and the use of planning and coordination instruments and bodies before and during the actual construction process. It is essential to improve methods of coordination and cooperation as this will make it possible to respect - or even reduce - estimates, costs and completion deadlines, whilst, at the same time, helping to enhance the image of the construction sector.

3.6.6. Be this as it may, the proposed action programme must promote introduction of the legal and contractual conditions required for the operation of the selected system and must likewise support action to increase awareness, provide information and ensure consultation with the players involved.

3.6.7. In the light of 4.1 and 4.4 of the Commission's communication, efforts should be made to encourage research and development with regard to innovatory ways of improving quality, taking account of specific aspects, such as: the size of the structures to be built; their technical complexity, the resources of the tenderers; progress on standards; the search for methods and voluntary certification schemes for ensuring quality which are both specifically applicable to the construction sector and accessible to SMEs; improved knowledge in the fields of technology and management; appropriate use of information technologies and complementary engineering processes; and measures to promote the dissemination of these technologies.

3.6.8. The concept of 'quality` of extends also to be construction materials employed and the structure and aesthetic value of the construction. The Committee has addressed these aspects in earlier opinions.

3.7. Second objective: Improving the regulatory framework and the general market framework

3.7.1. Various subsections of the communication (4.6 - 4.2 - 4.3 - 4.10) and its annex (3 'For ensuring fair competition` and 4 'For modernizing the role of the public authorities`) deal with the regulatory framework and the general market framework and put forward recommendations addressed mainly to the public authorities. The list of specific actions under the heading 'For modernizing the role of the public authorities` undoubtedly deserves special attention. The Committee generally endorses the proposals put forward at this stage by the Commission.

3.7.2. The Committee has tackled regulation and the various types of obstacles and barriers () in its opinions on the following subjects: standards procedures, construction products, public contracts, recognition of qualifications and, in particular, the various opinions it has issued on the Single Market Observatory. In this context the Committee has put forward proposals to the Commission, the Member States and the economic sectors concerned. The relevant issues need to be reviewed, particularly from the angle of competitiveness, an issue which is of vital importance to the development of the EU.

3.7.3. The Committee welcomes the desire expressed by the Commission to avoid, in the legislative and regulatory proposals which it submits, any provisions which would serve to hold back productivity gains or and competitiveness.

3.7.4. The Commission should also continue its efforts to achieve coordination and cooperation between its directorates-general concerned, thereby enabling it to take effective measures in the field of competitiveness, just as in other fields; such measures are expected by industry and the public.

3.7.5. It is recognized that the task of improving the competitiveness of this sector is primarily to be assumed by the production, service and consultancy firms which have a direct part to play in the construction process; from a general standpoint, however, responsibility has to be accepted by all the players involved. As regards regulations, however, the public authorities are clearly directly involved. The Committee therefore urges the Council of Ministers and the Commission to make the following measure as one of the first to be included in the action programme: the establishment, in respect of specific national regulations and EU regulations, of a list of possibilities for simplifying administrative provisions drawn up in the light of the most frequent complaints and of best practice. This list should also highlight the lack of clarity and transparency in regulations and contracts. It should bring about real improvements.

3.7.6. Efforts to increase productivity and competitiveness can be hampered by administrative and legislative rules laid down on grounds of the general interest, safety, the environment or other basically justifiable reasons, insofar as these rules fail to take adequate account of the realities confronting enterprises of various sizes working in a variety of fields.

3.7.7. The Committee points out that subcontracting problems do not solely affect small and medium-sized construction enterprises. The Committee also recognizes the need for an in-depth investigation of the subject of cooperation with general contractors, the various forms of public and private sector cooperation and the scope for new systems involving joint-contracting. The Committee would however highlight the importance and the urgent nature of the measures which need to be taken if we are to achieve situations and procedures that are economically acceptable and to introduce generally-applicable and legally-acceptable contractual provisions in order to put a stop to practices which are especially damaging to SMEs and persons working in SMEs. It would therefore be advisable to lose no time in drawing up an inventory of 'best practice` in the Member States, insofar as this can be determined, and to take account of this list when drawing up the action programme (e.g. with regard to the technical, tax and labour-law liability of general contractors).

3.7.8. The call for an in-depth investigation also applies to other areas which need to be addressed as a matter of urgency, such as:

- the practice of submitting abnormally low tenders and the harmful consequences of this practice;

- the various methods of qualitative and social 'dumping`;

- failure to observe safety rules, labour law and standards in respect of working conditions;

- the need for all players to make payments on time;

- the approximation of provisions relating to the duration of guarantees and insurance and liability provisions, insofar as they may lead to distortions in competition;

- best practice in respect of tax relief which have either been introduced or which it is planned to introduce;

- measures taken by the construction sector, or within the framework of various forms of partnership in the fields of operational safety, energy saving and environmental measures and rules;

- existing and planned provisions in respect of the black economy, in the light of its economic, social, financial fiscal, regulatory, competitive and technical aspects.

3.7.9. The importance to the construction sector of public contracts is well known. The problems with regard to the rules and procedures for public contracts have been addressed in a number of opinions issued by the Committee, in particular its opinion on the Green Paper on public contracts (). The Committee would like to feel that account will be taken of these comments in the proposed action programme on competitiveness.

3.7.10. The role played by public authorities in drawing up and implementing medium and long-term investment plans/programmes is of vital importance. These investment plans/programmes are a key instrument for increasing the competitiveness of forward-looking enterprises. In order to preclude problems, such as over-equipment of enterprises in respect of a specific contract, the investment plans must meet real needs and be targeted at specific objectives (major infrastructure - public buildings - housing - low-cost accommodation). Implementation of these plans hinges upon two conditions being met: firstly, financial reserves being set up (including reserves established through public-private partnerships) and used to promote the proposed goals; and secondly, the authorities concerned having at their disposal adequate technical and logistical resources and a clear legal framework to enable the various stages of the plans to be carried out at the right moment in time to achieve a balance between supply and demand and promote employment, technological development and structural adjustment. Attention should be drawn here to the need to introduce for maintenance and conservation, measures in respect of infrastructure, buildings and the architectural heritage. This proposal is particularly important at a time when it may be difficult to finance new investment because of budgetary constraints and when there is an increasing need for genuine public-private partnerships.

3.7.11. The vital importance of the trans-European networks (TENs) to promoting competitiveness in the EU has been highlighted and acknowledged on many occasions at the various European summits, notably at the recent special Summit on Employment (). The impact of the TENs on competitiveness goes beyond the bounds of the construction sector. In addition to the jobs created directly and immediately during the construction of TENs, the completion of these projects will, in both the medium and long term, bring lasting benefits in terms of jobs, as a result of the multiplier effect in other sectors of the economy [1=3, i.e. every job in the construction sector generates two further jobs in related sectors - see the SECTEUR study quoted in the Commission communication under review ()].

The ESC therefore calls for action at all levels to speed up the implementation of the TENs and the establishment of the attendant service centres, in accordance, in particular, with the recommendations made by EC Commissioner Kinnock's High Level Group and by means of the establishment of public-private partnerships and better coordination of all the various resources earmarked for infrastructure funding.

3.7.12. The Committee supports the Commission's analysis as regards the internationalization of construction activities beyond the frontiers of the EU. The EU construction sector faces very forceful competition, particularly from Japanese and US construction groups which include world leaders as regards size and engineering resources.

3.8. Third objective: Promoting a substantial and sustained increase in the level and quality of education and training in the construction sector

3.8.1. This objective is closely linked to the key 'quality` objective. It may be regarded as serving as a catalyst and providing a cornerstone for all the measures designed to increase competitiveness.

3.8.2. The substantial and lasting improvement in training urged by the Commission's communication will require ongoing dialogue and cooperation between all the players involved in the construction sector, in particular the social partners. Improvements will have to be achieved at all levels, with a view to opening up occupations and careers, enhancing the professional conscience, cultural awareness, sense of responsibility and spirit of initiative and innovation, and creating new linkages and new modes of working involving horizontal and vertical teams. Experience with joint industrial bodies could serve as an example here.

3.8.3. The ESC endorses the recommended actions set out in the annex to the Commission's communication. These actions are in line with the provisions of various EU programmes and initiatives based on the fundamental ideas set out in the White Paper on Growth, competitiveness and employment (1994), the White Paper on Teaching and Learning - Towards the Learning Society (1995) and various guidelines set out in respect of ongoing training, work-linked training and apprenticeships. The various opinions issued by the ESC in this field contain a number of observations which could be useful if considered in terms of the specific characteristics of the construction sector and its various segments ().

3.8.4. Well-planned education and training are of course the means to achieve vocational skills, which in turn are a vital guarantee for employment stability and may facilitate the changes which have to be made to accommodate new technology. Skills, backed up by measures to enhance standards and ensure recognition of qualifications, are prerequisites for quality and productivity, which are themselves vital to competitiveness which in turn makes it possible to improve the working conditions and the social standing of all those working in this highly labour-intensive sector.

3.8.5. The Committee therefore urges that special attention be focused on training and improving qualifications and skills in the construction sector when guidelines are drawn up and concrete, coordinated measures are planned as part of the proposed action programme. It is very clear what is at stake here, namely the future of the construction sector and that of millions of jobs.

3.8.6. The Commission's recent work in the field of training appears to demonstrate a preference for 'sunrise sectors`. This attitude must not have a detrimental effect on the efforts and investments in the construction sector which appears, wrongly, to have been excluded from the priority measures earmarked for the 'sunrise sectors`, which moreover, have not been properly defined. This observation also applies to research by CEDEFOP into training in the construction sector. Attention is drawn in this context to the need to avoid duplication of studies and analyses.

3.8.7. At the risk of being criticized for being verbose, the Committee wishes to draw attention to a number of points, namely: the development of appropriate forms of training for those working in the construction industry would provide a powerful tool for promoting youth employment; the spectrum of skills ranges from essentially manual skills to high technology, management of the whole construction process and financial management, the production process in the construction sector lends itself to the organization of tailor-made trainee schemes; the range of qualifications in the construction sector should encourage people to seek to obtain higher qualifications and to give a new impetus to their careers; and vocational qualifications should be improved, inter alia, by introducing appropriate systems for providing information, monitoring and guidance, involving not only the social partners but also the parents of young people and the teachers who would be called upon to operate such systems as part of education programmes designed to boost the recruitment of young people. 'Building-industry information and training centres` could help to improve the provision of information and to put an end to a number of preconceived ideas which are damaging the construction sector.

3.8.8. In the specific-action tables which are appended to the communication, actions in the field of 'Education and training` are listed under the heading 'For promoting intangible investment`, alongside those in respect of 'Technology`, 'Employment conditions`, and 'Other`.

3.8.9. In this context the Committee urges an improved strategy for coherent incentives to intangible investment and intellectual investment in general. The policies designed to promote SMEs do indeed draw attention to the importance of such investment. It is, however, clear that investment with a view to promoting know-how, the acquisition of experience, information capacity, the fulfilment of labour-law commitments, and further training and innovation in the fields of management and organization generally fails to have much impact in the following areas: the determination of the criteria for implementing support and aid arrangements; assessment of confidence and credit ratings; tax provisions in respect of amortization; the procedures in respect of the takeover of enterprises, transfer of ownership, etc. Intangible investments should be assessed carefully and in greater detail in order that they may be taken into account in a number of fields, such as employment, finance, tax, training and the use of information technology networks to promote decentralized interactive training on a large scale.

3.8.10. In view of the fact that training is principally the responsibility of national, regional and local authorities, the subsidiarity principle should apply. The action programme will have to take account of this principle in a constructive manner.

3.9. Fourth objective: Reorientating and reinforcing research and development

3.9.1. The Committee shares the Commission's view that this key objective is a vital factor in improving competitiveness.

3.9.2. This objective ties in with the various R& D framework programmes on which the Committee has issued opinions. The construction sector has a number of distinctive features in respect of R& D, such as the relatively small size of firms, the difficulty in carrying out transfers of new technology in good time and judiciously, and the local/regional operating level of the sector which hampers the pursuit of an EU-level approach to R& D.

3.9.3. There is some doubt as to whether research workers and those working in the construction sector fully understand the importance of R& D in respect of new technology. The Commission, too, frequently gives priority to research into leading-edge technology in the 'sunrise sectors` to the detriment of research into medium-level technologies in the 'traditional sectors`. Neither of these two fields must be neglected. We must find the most effective procedures for all sectors which have to increase their competitiveness.

3.9.4. The Committee is of the opinion that the fifth R& TD framework programme does take account of the specific needs of the construction sector. The Commission proposes a key action entitled 'competitive and sustainable growth: the city of tomorrow`. This key action covers three areas, one of which is the 'development and demonstration of technologies for economic, clean, effective and sustainable recovery, renovation and construction, in particular for large groups of buildings and for the protection of the cultural heritage` ().3.9.4.1. The Committee highlights the importance to the construction sector of this key action and urges that this action receive the attention which it deserves. To this end, this action should come under the third theme of the fifth R& TD framework programme (promoting sustainable growth) rather than under the fourth theme (energy, the environment and sustainable development). Given the important contribution made by the construction sector to EU GDP (11 %), the share of EU funding allocated to R& D projects in this sector (less than 5 %) is inadequate.

3.9.5. There should be a better knowledge of the level of research being carried out in the construction sector and the fields in which this research is being carried out (industrial competitiveness, the environment, conservation and renovation of buildings which form part of the architectural heritage, employment, energy, etc.). Very approximate estimates are available as to the level and distribution of research across Europe. There is therefore a need to draw up an inventory of this research in the Member States and to classify it by category (e.g. basic research, general research, research into competitiveness, etc.) and according to the type of enterprise concerned (enterprises which manufacture construction products, construction enterprises, offices providing advisory services, public research bodies, universities, etc.). There is also a need to devise methods for assessing the effectiveness of the research, and its impact on the competitiveness of the sector, improvements in sustainable design and construction and increases in productivity.

3.9.6. This approach would enable the construction industry to exploit its research strengths and take account of its weaknesses, to identify the key policies more effectively and to promote the introduction of appropriate measures. There would appear to be no shortage of research fields which are both interesting and beneficial (e.g. the protection of buildings against various forms of nuisance).

3.9.7. The abovementioned points give rise to a number of observations, one of which is rightly made by the Commission. The observation in question is the perceived shortcomings in research on the construction process and forms of management and organization; these shortcomings were referred to in other points in this opinion, namely the point dealing with 'quality`.

3.9.8. Most research activities are directed to products, and to a lesser extent, technologies, whereas the construction process is the main focus of concern of all enterprises seeking to increase their competitiveness.

3.9.9. The success of the building operation (quality, price, deadlines, making best use of human resources and environmental and safety considerations) essentially depends upon the forms of coordination between the different parties involved; contracting bodies and clients, architects, consulting engineers, manufacturers of construction materials, construction firms by separate or grouped trades, general contractors and subcontractors. Although the EU's R& D framework programmes cannot resolve all the problems which arise in this field, there are nonetheless some research projects on optimum efficiency in the construction process which deserve to be examined with a view to their implementation at EU level, such as the research projects relating to the application of new information and communication technologies.

3.9.10. Parts of the construction industry are highly innovatory and there is increasing research into innovation. Nevertheless, the fragmentary and conservative nature of the industry means that major effort is called for in the following fields: dissemination of information, transfer of technology, introduction of codes of practice, cooperation between research institutes and enterprises, incentives for new techniques and innovatory procedures.

3.9.11. In addition to the possibilities specified in the R& D framework programme, in particular those relating to SMEs, the Committee endorses the specific actions listed in the annex to the Commission communication. All these considerations highlight the need to coordinate actions and methods and the need for responsibilities to be clearly defined in a field in which the EU, the Member States and the construction sector all have a role to play.

4. Conclusions

4.1. The comments, guidelines and proposals set out above should be seen in the context of a forthcoming decision by the Council on an action programme for the construction sector. The Committee looks forward to a constructive decision by the Council and draws attention to the following points:

4.2. With regard to the nature and implementation of the action programme, the Committee:

4.2.1. endorses and supports the course of action pursued by the Commission. As a representative body at EU level for the economic and social interest groups directly and indirectly concerned, the Committee will seek to be closely involved in the consultation process of the action programme;

4.2.2. highlights the urgent need to set out a framework and guidelines for the implementation of this programme at EU, Member State level and company level;

4.2.3. points to the urgent need for concrete action to prepare and facilitate EU enlargement and to give effect to the conclusions of the Luxembourg Employment Summit of 20 and 21 November 1997, including those in respect of new forms of intervention by the EIB;

4.2.4. stresses that the four key objectives will prompt action by the parties involved, namely: public and private clients commissioning building work, the persons responsible for overseeing the work (engineers, architects, advisors and coordinators), building entrepreneurs and their workforces;

4.2.5. points out that the action programme should aim to achieve a high level of horizontal and vertical integration, given the linkages between EU sectoral policies and the operation and responsibility of players in the construction sector;

4.2.6. believes that the action programme should be based on a timetable for the various levels of decision-making and action, and on constructive, dynamic application of the subsidiarity principle;

4.2.7. urges that the action programme include machinery based on consultation and cooperation, for assessing the implementation of the programme, facilitating the regular exchange of experience and carrying out the appropriate adjustments;

4.2.8. highlights the vital role played by labour management and the economic and social interest groups concerned in the effective implementation of the proposed measures;

4.2.9. calls for compilation and updating of data banks which provide a basis for realistic decisions.

4.3. As regards the measures to be included in the action programme, the Committee:

4.3.1. urges that, initially, such measures pursue the avenues opened up by the key objectives;

4.3.2. considers that it would be beneficial to draw up a systematic inventory of best practice in the various fields referred to in the present opinion; this would facilitate problem-solving and making it unnecessary to carry out expensive studies and analyses which are expensive and frequently duplicate previous work;

4.3.3. underlines the importance, in the context of the key objectives, of a number of areas and measures, such as those set out below:

- suitable training schemes at all levels;

- improvements in the image projected by the construction sector, working conditions and work-organization, and safety and health-protection measures in respect of construction sites;

- improvements in the management and organization of the construction process;

- the establishment of a list of the R& D fields covered at present and which should be covered in future;

- the transfer and application of new technologies through close links between enterprises and research bodies;

- encouraging new forms of cooperation which can offset the inherent weaknesses of small enterprises;

- the establishment of more transparent policies and rules in respect of public procurement and the procedures for awarding contracts;

- the removal of hindrances to increased competitiveness and further work on issues raised in section 3 above, and in particular 3.7.8;

- the promotion of intangible investments, particularly in the management of human resources and the exploitation of new data in the fields of safety, the environment, energy and finance;

- consistent implementation of effective medium and long-term investment plans, and the identification of suitable forms of public-private partnership.

Brussels, 29 April 1998.

The President of the Economic and Social Committee

Tom JENKINS

() Key figures concerning the construction sector taken from Chapter 2 of the Commission's communication: it is the largest industrial sector, accounting for 11 % of EU GDP; it is the largest sector in terms of employment - employing 8,8 million persons which represents 7 % of the working population; 26 million workers depend, directly or indirectly, on the construction sector; '1=3` i.e. one job created in the construction sector indirectly generates two extra jobs; the sector comprises 2 million enterprises, 97 % of which have fewer than 20 workers and 94 % of which have fewer than 10 workers.

() The four key objectives are: to develop a coherent quality policy; to improve the regulatory environment and the general market framework; to promote a substantial, lasting increase in the level and quality of education and training in the construction sector; and to reorientate and reinforce research and development in order to meet the need for change.

() The construction industry is considered in the broad sense of the word, and includes housing, non-residential buildings, civil engineering and industrial construction. In addition, the whole supply chain needs to be taken into account - from primary raw materials to complex products and systems. Similarly, the construction process includes all phases - from initial conception, through feasibility studies, design, execution of the works, and maintenance, to demolition (including recover and recycling of materials, and waste disposal and incineration).

() OJ C 355, 21.11.1997.

() See the ESC Opinions on: Technical standards and mutual recognition (OJ C 212, 22.7.1996); Green Paper on public procurement in the EU: exploring the way forward (OJ C 287, 22.9.1997); Problems encountered by SMEs in cross-border business relations, including conformity with technical requirements (OJ C 206, 7.7.1997).

() OJ C 287, 22.9.1997, p. 92.

() See paragraphs 33 and 40 of the Summit Conclusions and the Communication from the Commission on Community policies in support of employment - COM(97) 611, p. 12.

() 'Strategies for the European construction sector` - the SECTEUR study.

() See the ESC opinions on: the White Paper on Growth, Competitiveness and Employment (OJ C 295, 22.10.1994); the White Paper on Teaching and Learning: Towards the Learning Society (OJ C 295, 7.10.1996); the Commission Report on access to continuing education in the EU (OJ C 19, 21.1.1998); the Commission Communication on promoting apprenticeship in Europe (OJ C 95, 30.3.1998 - CES 110/98, 28.1.1998).

() COM(97) 142 final of 30 April 1997.