Exclusive: Skills body CITB puts restructure that could have cost up to 拢7m on the 鈥榖ack burner鈥 amid mounting problems

Apprentices

The industry鈥檚 skills council has shelved its multimillion-pound modernisation drive amid mounting problems including a lack of government support, 好色先生TV can reveal.

The CITB, which is mainly funded by industry firms through a levy, but is overseen by the Department for Business Innovation and Skills (BIS), had planned a major restructure dubbed Project Orion.

The initiative, which CITB says could have eventually cost up to 拢7m, included creating a separate commercial training business to compete with private sector training providers.

Last year, CITB chairman James Wates said Project Orion would allow the CITB to be 鈥渕ore commercial and more agile in terms of competing鈥. 鈥淸Organisations] need to be agile or you get left behind,鈥 he said.

But this week, Wates told 好色先生TV that Project Orion had been 鈥減ut on the back burner鈥 amid the departure of CITB chief executive Mark Farrar last month.

A CITB spokesperson said around 拢200k had been spent on Orion so far and added that 鈥渙ne of the reasons for drawing Orion to a halt was that the ultimate cost was judged to be far too expensive鈥.

Project Orion, signed off by the CITB board in late 2011, was intended to span several years and allow the organisation to provide a more holistic service to the industry with money raised by the new commercial arm ploughed back into developing this service.

But 好色先生TV understands that BIS opposed the commercial operation because of the risk to taxpayers鈥 money.

A member of the CITB board, who did not wish to be named, also claimed Orion was 鈥渁ll over the place鈥 from the outset.

鈥淭he problem was they never kept it simple,鈥 he said. 鈥淭hey spent a fortune on external agencies and it just crashed.鈥

The revelation that Orion has been shelved comes at a crucial time given that the CITB is facing a review by BIS next month for the first time in three years.

Commenting on the view of BIS, Wates said: 鈥淚 don鈥檛 think they were objecting but they were acting with due caution. They see their role as ensuring that public money is well spent. We have had the argument with them that this isn鈥檛 public money but industry money.鈥

Wates said that halting Orion would lead to further financial costs but declined to estimate these. He said the body still wanted to put in place a restructuring programme but that said this would not take place until a permanent chief executive has been appointed.

The organisation鈥檚 annual report and accounts for 2012, published this week, revealed that the IT improvement part of the modernisation drive has also been halted, with individual elements 鈥渁bandoned鈥, resulting in a write-off of 拢1.6m.

Erika Stoddart, the CITB鈥檚 director of corporate services who was in charge of the IT programme, has resigned with effect from next month, according to the annual report.

Wates said: 鈥淚t鈥檚 disappointing because everyone knows IT projects have the tendency to go slightly awry and this one did.鈥

He added the CITB is in good financial shape and retains the support of the industry.

鈥淏ut [CITB] could be better and it is always our intention to make it better,鈥 he said.

He said the board was now more involved and that William Burton, interim chief executive, will 鈥渒eep the wheels turning鈥 until a permanent chief executive is appointed, ideally before the end
of the year.

A BIS spokesperson said 鈥渢he decision to suspend the Orion programme was one taken by the CITB-ConstructionSkills Board.鈥


CITB in numbers

Key points from the CITB鈥檚 2012 annual report and accounts:

  • Levy income static at 拢144m
  • Funding from government down 35% to 拢9m  
  • Net assets of 拢125m, up 24% from previous year
  • Grants paid to employers 拢1m less than forecast due to 鈥済reater than anticipated decline in training activity鈥
  • Value of the CITB鈥檚 freehold properties down by 拢5m after valuation
  • Total pay package of highest earning executive, Mark Farrar, up 4% to 拢232,000
  • Wates鈥 拢22,000 remuneration waived by the chairman 鈥渋n favour of an award to the employer making the most innovative contribution to low-carbon construction鈥.