Key Facts:
- The Victorian Government has rejected a parliamentary motion to disallow new quarry fee regulations, with the motion defeated 19 votes to 15 in the Legislative Council.
- CCAA is calling on the Victorian Government to engage directly with the quarrying industry regarding the scale, timing, and basis of the proposed fee increases before they take effect.
- Industry accepts making a fair contribution towards effective regulation, but argues the increases must be proportionate, transparent, and matched by improvements in regulatory performance.
- Concerns are being echoed across Victoria's broader housing and construction sector, with multiple industry bodies warning that higher quarry costs will flow through the supply chain and place further pressure on housing and infrastructure delivery.
- Victoria's heavy construction materials industry contributes $3.17 billion to Gross State Product and supports more than 15,600 jobs, underlining the potential downstream consequences of the fee increases.
Cement Concrete & Aggregates Australia (CCAA) is calling on the Victorian Government to urgently engage with industry and find a reasonable path forward on proposed quarry fee increases, following the defeat of a parliamentary motion to disallow the new regulations.
The Victorian Legislative Council on Wednesday rejected a motion moved by the Hon David Davis MP to disallow Statutory Rules 111 and 112, covering new fees for Victoria's extractive and mineral industries.
The motion was defeated 19 votes to 15, with Labor and the Greens voting against the disallowance. Liberal and Nationals members, David Limbrick MP (Libertarian), Moira Deeming MP (Independent) and Rikkie-Lee Tyrrell MP (One Nation) supported the motion.
Despite the scale of the proposed increases, the Government has not engaged directly with the industry since the Regulatory Impact Statement consultation process last year, while the Minister for Energy and Resources is yet to meet with the sector to discuss the changes.
CCAA Chief Executive Officer Michael Kilgariff said the parliamentary outcome should not be interpreted as the end of the issue.
"The concerns of Victoria's quarrying industry, and increasingly the broader housing and construction sector, have not gone away simply because this motion was defeated," Mr Kilgariff said.
"Before these substantial increases are passed on to industry, the Government needs to sit down with the sector and find a reasonable path forward.
"We are asking the Government to engage directly with industry on the scale and timing of these increases, the basis on which regulatory costs have been calculated and, critically, what improvements in regulatory performance industry can expect in return.
"Industry accepts that it should make a fair contribution towards effective regulation but increases of this magnitude need to be proportionate, transparent and supported by a regulatory system that delivers timely and efficient outcomes.
"We should be working together to find a solution that supports effective regulation without unnecessarily increasing the cost of the materials Victoria needs to build."
CCAA's concerns are now being echoed across Victoria's housing and construction sector, with the Urban Development Institute of Australia Victoria, Housing Industry Association, Master Builders Victoria, Property Council of Australia and Civil Contractors Federation Victoria warning that higher quarry costs will flow through the construction supply chain and place further pressure on housing and infrastructure delivery.
The five organisations have also called for genuine consultation before the changes proceed, including consideration of cost impacts, supply-chain risks and housing affordability.
Mr Kilgariff said the breadth of concern demonstrated why further engagement was necessary.
"This is no longer just the quarrying industry raising concerns. Organisations representing builders, developers, property and civil construction are all warning about the downstream consequences.
"Victoria needs enormous quantities of locally produced stone, sand, concrete and cement to deliver new homes, roads, rail, schools, hospitals, renewable energy projects and other essential infrastructure.
"Making those materials more expensive ultimately makes building Victoria more expensive.
"The vote has occurred, but there is still an opportunity for the Government to listen. We are asking the Minister to meet with industry before these increases take effect and work with us on a fair and reasonable path forward."
During Wednesday's parliamentary debate, CCAA's concerns about the impact of higher quarry costs on construction materials, housing, roads, infrastructure, regional jobs and local production were raised directly in the Legislative Council.
Victoria's heavy construction materials industry contributes $3.17 billion to Gross State Product and supports more than 15,600 jobs.
About us:
About CCAA CCAA is the voice of Australia's heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia's cement, concrete and aggregates, which are essential to the nation's building and construction sectors
