After agriculture, the government makes announcements for construction

Less than two weeks after asking to be treated in the same boat as farmers, certain construction companies have won their case.

The French Building Federation (FFB) “welcomes” the announcement from the Ministry of Economy and Finance, it indicated on the social network X (formerly Twitter).

Bercy had indicated a little earlier that the increase of 5,99 cents per liter in a tax on non-road diesel (GNR), planned from this year for the construction sector, would be compensated in 2024 for companies of 15 maximum employees.

Described as “support” in the face of the “decline in activity” in the construction sector, the measure will allow small businesses to be reimbursed up to 20.000 euros. Compensation will be paid at the beginning of 2025 for RNG expenses incurred in 2024.

The threshold of 15 employees displeased the National Federation of Public Works (FNTP), according to which it amounts to creating "a niche within the tax niche", in fact making the system more complex, going against the government's promises of administrative simplification.

The FNTP also fears that the threshold will create a “distortion of competition” among small and medium-sized construction companies.

The Government gives in

The construction and agricultural sectors benefit from a reduced excise rate on RNG, which the government had planned to phase out between 2024 and 2030, arguing that supporting tax advantages for fossil fuels was contrary to its environmental objectives.

Thus, the planned increase was 5,99 cents per liter per year in the construction industry and 2,85 cents in the agricultural sector.

The government abandoned this increase in the agricultural sector at the end of January, following the angry movement of farmers.

The construction sector, which is currently going through a bad patch, has asked to benefit from equivalent measures.

In its press release, Bercy estimates that the compensation granted to small construction companies should cost the State around 20 million euros.

The ministry adds that the year 2024 will be “used to organize a broad consultation with representatives of the sector” on the measures which will accompany “the trajectory of gradual extinction” of the tax advantage on GNR.

Among these measures, cited in the press release are "financial support for the sector, the promotion and valorization of biofuels, aid measures for equipment with electrical or fuel-efficient equipment, strengthening of controls regarding the good use of applicable reduced rates.

Bercy finally indicates that the simplification bill for businesses, currently being developed, will provide for a reduction in payment deadlines for public administrations, "which will help improve the cash flow of companies in the sector".

The ministry will consider in particular the possibility of "standardizing and strengthening the level of default interest rates applied to public defaulters", as well as an automatic application of these default interests, "rather than at the request of the company”.

Finally, the government is announcing the holding in the coming weeks of a National Construction and Renovation Council which will address all of these subjects.

End of blockages at Lorient and Brest oil depots

Public works artisans decided on Tuesday evening to lift the blockade of the oil depots in Lorient and Brest with which they wanted to put pressure on the government to maintain their tax niche on non-road diesel (GNR), like the farmers.

"We lifted the blockade in Lorient following the decision of the court" of the city, referred to in summary proceedings by the management of the depot, explained to AFP Norbert Guillou, president of the CNATP (National Chamber of Craftsmen of Public Works and Construction). landscape) for Morbihan.

The court on Tuesday ordered the blocking to be lifted no later than 18:30 p.m., under penalty of a penalty of 500 euros per hour of presence. Access was restored around 18:00 p.m., according to an AFP correspondent, and the depot should be able to resume normal activity on Wednesday morning, management estimated.

The Lorient oil depot had been blocked since January 25 by trucks and backhoes from public works workers refusing the increase in taxes on GNR. They are asking to be able to benefit from the same exemptions that the government granted to farmers in response to their recent mobilization.

A similar blockade had started in front of the Brest depot on February 8 but it was also being lifted on Tuesday evening, said Norbert Guillou, confirming information from local media.

GNR: CAPEB welcomes the attention paid by Bruno Le Maire to VSEs for the benefit of which his demands were heard

While support measures have just been announced following the demands made by the construction sector on the necessary elimination for all of the increase in the GNR tax and the acceleration of payment deadlines for public administrations, CAPEB declares itself satisfied with the fair consideration by Bruno Le Maire, Minister of the Economy, Finance and Industrial and Digital Sovereignty, of the specificities of VSEs in the building sector.

Concerning the accompanying measure on GNR, the parameters announced in terms of compensation will allow VSEs in the construction sector to be, in 2024, protected from the unfair competition they face from the agricultural world. Nevertheless, CAPEB will ensure the rapid opening of the promised consultation in order to avoid a similar situation happening again at the end of the year. The challenge is significant, especially since it is essential to support VSEs in the building sector in switching from carbon-based energies to green energies.

Concerning the measures relating to the acceleration of payment deadlines for public administrations, the four proposals formulated are positive and will be likely to improve the cash flow conditions of our VSEs. CAPEB will be attentive to ensuring that public buyers correctly apply these measures.

The organization would, however, like to point out that the major concern of craft construction companies remains the level of their activity, particularly in 2024, with the prospect of recession. It is therefore imperative to restart the activity. In this context, the proposals that CAPEB makes to MaPrimeRénov' in terms of simplifications and access to markets must imperatively be part of the measures announced by Christophe Béchu, at the end of their meeting on Thursday February 15.

The FNTP is satisfied with the announcements on payment deadlines but will be attentive to the conditions of their implementation

The National Federation of Public Works has taken note of the measures in favor of construction detailed today by the Ministry of the Economy and Finance in a press release. Among these measures are a series of strong announcements made by the FNTP aimed at ensuring that payment deadlines are respected by all public order givers.

After several weeks of discussion with all construction stakeholders, the Government announced:

Financial compensation over 2024 for companies with fewer than 15 employees equivalent to 5,99 cents per liter (with a theoretical ceiling of €20.000) which will occur in 2025.

For the FNTP, the creation of this new threshold entails at least two difficulties:

• It amounts to creating “a niche within a niche”, contrary to the Government’s desire for simplification.
• It will undoubtedly lead to a distortion of competition among small and medium-sized businesses, completely contrary to the intended spirit.

Ambitious announcements to enforce payment deadlines among public contractors. The Government has in fact committed to:

• Limit the postponement of payment or cancellation to the first dispute by the public ordering party;
• Standardize and strengthen the level of moratorium interest rates applied to public defaulters;
• Make public payment deadlines more transparent (with the possibility of using “name and shame” and extend the powers of the DGCCRF);
• Automatically apply default interest, to avoid companies having to request it.

All of these announcements constitute proposals made specifically by the FNTP in response to the worsening payment delays that companies have been experiencing for several months. The conditions of implementation will be essential, either they will be disappointing and in this case without effect on the cash flow of companies, or they will be effective and in this case able to greatly change the daily life of companies.

For Alain GRIZAUD, President of the FNTP: “The measures announced in terms of payment deadlines constitute strong hopes for the FNTP which has made respecting these deadlines a priority for action in recent weeks in the face of the growing difficulties of businesses. We nevertheless remain very vigilant with the conditions of application, so that they do not betray the principles set out today, as is unfortunately often the case. »

Illustrative image of the article via Depositphotos.com.