Local builders could still face being squeezed out of the Green Deal market unless the Government ensures that small local building companies have an equal opportunity to offer Green Deal finance to their customers, warns the Federation of Master Builders (FMB) in response to the launch of the Government's Green Deal consultation paper.

Brian Berry, Director of External Affairs at the FMB said: "The Green Deal offers an enormous opportunity to transform the nation's building stock to make it greener and more energy efficient as well as help generate thousands of new jobs in the building industry. It's great news that the Government has listened to us and recognizes that SME builders are in direct contact with householders and are therefore well placed to advise householders on specific works that might be appropriate under the Green Deals. However, that potential is at risk if small building firms can only offer Green Deal finance by tying themselves to major companies. The danger is that the large energy and utility companies will hoover up the Green Deal market and squeeze out local builders which is very bad news both for the building industry and local economies."

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"The Government needs to ensure that accredited Green Deal builders have equal access to Green Deal finance so that they can offer these new finance packages to their customers. It is the local builder who is best placed to advise customers on retrofit work when they are carrying out other home improvement works and these ‘trigger points’ for Green Deal work will be lost if local builders can’t access the Green Deal finance."

Mr Berry concluded: "The Government needs to create a Green Deal finance delivery vehicle that local accredited builders can access and offer to customers wanting to undertake Green Deal work. With rising energy prices the market for retrofit work is certainly there and is worth at least £3.5 billion every year but consumers will need to be convinced that the Green Deal makes financial sense to them. It’s pleasing therefore to see the proposed cash back incentive in the consultation but a reduced rate of VAT for Green Deal approved measures is needed in addition to boost demand and create much needed jobs in the building industry but local building companies first need to be given the opportunity to do the work otherwise the Green Deal will be a lost opportunity."

(CD)