News that Chancellor Alistair Darling plans to spend cash on infrastructure is potentially good for an investment hungry sector like recycling and waste.
In an interview with the Sunday Telegraph, Darling signalled that the Government would support the economy with money from future budgets to fund infrastructure projects. He said: What I want to avoid is getting ourselves into a position Governments have done in the past where you face an immediate problem and cut back on things the country will need in the future.
Chartered Institution of Wastes Management chief executive Steve Lee commented: Potentially it could be good for this industry as weve got no choice, we need to invest in infrastructure within two to 10 years.
We think that the £10 billion that has been suggested as required investment is an underestimate. This is an investment hungry sector and we would be interested to find out the details of what the Chancellor has in mind. If it included an accelerated capital investment programme for waste and resource management wed be delighted. But it could be for airports or motorway widening!
A spokesman for the Local Government Association was also wary of premature cheer about the news. He said: Its too early to know specifically what impact the targeted spending will have on waste and recycling infrastructure. But spending on environmental projects can help stimulate the economy by creating jobs.
In the interview, Darling also indicated that housing, energy and small businesses would benefit from the reprioritised spending. He is expected to reveal more details of spending in Novembers Pre-Budget report.
Image: Chancellor Alistair Darling