3 months ago
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The news
Queensland’s rebooted Productivity Commission has turned in its first work for the Crisafulli government, with a report that calls for scrapping a controversial arrangement with building unions.
The interim report from its inquiry into the construction sector, released on Thursday, canvasses a range of issues, from inconsistent regulation and planning to the labour market.
Blowouts on construction projects, including public hospitals, have soared in recent years.Credit: Dan Peled
It found that the industry was not keeping pace with the pipeline of work in demand – from housing to major infrastructure – which has more than doubled since December 2020.
It calculated a fall in productivity of about 9 per cent since 2018, equivalent to 77,000 homes that had not been built, which it said was more than enough to address current supply shortfalls.
How we got here
The commission and its first probe is one plank of the government’s efforts against the CFMEU, including reviewing the so-called “CFMEU tax”.
Queensland’s “best practice industry conditions” are referred to pejoratively by critics as the “CFMEU tax”.Credit: AAP
This is the pejorative term for the “best practice industry conditions” (BPICs) brought in under Labor to set pay and conditions on state-funded projects at union-negotiated levels, positioning the government as a model client.
Within weeks of taking office last year – and after revelations that criminals had infiltrated the CFMEU and building industry across the country – the LNP made good on their pre-election rhetoric and hit pause on BPICs for new projects until the Productivity Commission made a final recommendation on their use.
What they said
Treasurer David Janetzki said the interim report showed it was possible to get on top of the productivity challenge, and the right fit-for-purpose regulation would see productivity improve.
“I’m very confident that this Productivity Commission report, when it’s handed down … together with the commission of inquiry into the CFMEU, will see productivity improved, because it’s been flatlining for too long,” he said.
Another point of view
The findings of the report were welcomed by stakeholders from the real estate industry, construction employers, and local councils.
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“These figures are proof that councils are more than doing their job to help facilitate more houses, townhouses and units being built,” said Gladstone mayor Matt Burnett, the president of the Local Government Association of Queensland.
“There is no simple solution to creating more homes but the analysis shows there is plenty of land zoned for developers to bring to market and builders to build on.”
The Australian Constructors Association said Queensland had a once-in-a-generation infrastructure task ahead with the Olympic Games on the horizon, and the report “gives us a clear roadmap to get started”.
They backed the recommendation to scrap BPICs, as did the Real Estate Institute of Queensland, who said that planning and regulatory burdens were contributing to the housing crisis.
What’s next
The government said it would continue to engage with stakeholders, with submissions due by August 28, and a final report to be handed to the government by October 24.
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