The Queensland Government has committed to reforms aimed at boosting productivity in the construction industry after an independent inquiry revealed the sector has been hamstrung by red tape and union involvement.
Treasurer, Minister for Energy and Minister for Home Ownership, David Janetzki, today released the Government’s response to the 64 recommendations contained in the Queensland Productivity Commission’s final report into the State’s construction industry.
The final report called for an ‘industry reset’ with sector productivity declining by 9% equating to 77,000 fewer new homes since 2018 and labour productivity growing just 5% in the last 30 years compared to 65% in the market economy over the same period.
The Government has agreed or agreed in-principle to 51 of the 64 recommendations including:
- Permanently removing BPICs from procurement policy
- Removing pre-qualification for sub-contractors on government construction projects
- Reducing administrative burden by removing policies that add complexity to the procurement process, and removing barriers to innovation and competition.
- Providing greater guidance on health and safety regulation, including mechanisms for dealing with WHS disputes and the use of right-of-entry provisions
- Reviewing regulator powers in conjunction with the Wood Commission of Inquiry
- Introducing a less prescriptive and better targeted policy to boost the number of construction apprentices
- Reviewing available training courses to ensure skills needed for modern methods of construction are appropriately represented.
- Progressing Queensland’s participation in the Automatic Mutual Recognition scheme and streamlining the licensing process for migrants.
“I thank the Productivity Commissioner Angela Moody and her team which has delivered a comprehensive report informed by a consultation process across six months, including more than 250 public submissions, 86 stakeholder meetings, four regional visits and six roundtables,” Treasurer Janetzki said.
“We have been left a significant productivity challenge but we have already delivered reform, including permanently axing Labor’s Best Practice Industry Conditions (BPIC) recognising it was crippling productivity in Queensland, projected to cost Queenslanders $20.6 billion over the next five years.
“The Government’s response to the final report will improve productivity by reforming procurement, improving land use and building activity regulation and aiding labour market operation.”
Minister for Housing and Public Works, Sam O’Connor said productivity reform was essential to delivering more homes faster.
“This report exposes why we’re in this housing crisis and the actions we’re taking in response are our pathway to increase supply to the levels Queenslanders deserve,” Minister O’Connor said.
“The recommendations back in our procurement overall to create more opportunities for local tradies and small businesses, reduce red tape, and deliver better value for Queensland taxpayers.”
The Ministers said work will continue across the Government to prioritise and coordinate the implementation of the recommendations and further targeted consultation with stakeholders will be undertaken where required.
