The NSW Liberal and Nationals Government is taking action to protect the 400,000 construction jobs across the state by strengthening industrial relations and procurement oversight for Government projects.
The boost to the Construction Compliance Unit will further protect the state's $116.6 billion infrastructure pipeline and the jobs and families it supports.
The move comes after the federal Labor Government abolished the Australian Building and Construction Commission (ABCC) and the federal building code of conduct.
The federal instruments had successfully underpinned productive growth and lawful conduct in the industry, supporting the construction boom in NSW over the last decade.
In response to federal Labor abandoning sensible regulatory safeguards in the construction industry, the NSW Government is stepping in to fill the void by:
- Boosting funding to the NSW Construction Compliance Unit (CCU) by $1.3 million a year for proactive monitoring, reporting and compliance activities;
- Increasing unannounced site visits on NSW Government-funded infrastructure projects by the CCU and
- Commencing an open consultation with industry stakeholders to review the NSW Building and Construction Procurement Guidelines which regulate the conduct of building and construction work on NSW Government projects.
These measures will protect against cost and time blow outs that would lead to a less productive industry with fewer jobs.
Treasurer Matt Kean said the Liberal and Nationals Government was committed to a flourishing construction industry that delivers for workers, taxpayers and the broader community.
"The benefits of our record infrastructure pipeline will be felt far and wide and we cannot allow Labor's sabotage of a successful regulatory framework to put those projects and jobs in jeopardy," Mr Kean said.
"We are just catching up from Labor's abysmal record on infrastructure delivery in this state and proper regulation of the construction industry is a crucial part of the Liberal and Nationals delivering for the people of NSW."
Minister for Employee Relations Damien Tudehope said opposition to regulation of the construction industry and the ABCC was not in the best interests of workers.
"The Liberal and Nationals Government has a proven track record of driving a consistent pipeline of good jobs in construction and we want this to continue," Mr Tudehope said.
"Construction union membership is under 10 per cent in Australia but we know from the experience in other states that this minority can impose an enormously damaging impact from shutting down projects, coercive and illegal action and dragging out industrial disputes with ambit claims.
"Whether it's promoting compliance when a new tunnel is being dug or at a motorway expansion project, these measures will mitigate against the risk of delay or interruption to the state's major infrastructure projects."
Brian Seidler, Executive Director of Master Builders Association NSW, said following the abolition of the ABCC last year, it was pleasing to see the NSW Government taking steps to ensure that construction sites here have some protections from unlawful and coercive behaviours.
"Since at least 1982 multiple Royal Commissions and judicial enquiries have recognised that the unique nature of commercial construction means that the industry is especially vulnerable to unethical and illegal behaviour, and as such requires special measures in order to deter illegal behavior," Mr Seidler said.
"Greater oversight and increased funding for the NSW CCU to undertake proactive monitoring, reporting and compliance activities is welcomed."
