Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I thank the member for his very serious question on the economy. It is good to have important questions on the economy from the member for North Sydney. Today, in response to the results in the National Australia Bank Quarterly Business Survey, Alan Oster, the chief economist there, said:

… the improvement in the non-mining economy remained well entrenched, while the outlook was generally positive as well.

…   …   …

It certainly seems like they—

that is, business—

are remaining quite upbeat about the outlook, which suggests good things for the labour market and future investment.

The transition in our economy is taking place. Australians and Australian businesses are making that happen every single day, but as a government we need to do the things that back them in to ensure that that transition continues. Microeconomic reform is critical to that task. That is why we brought down our response to the Harper review with the sorts of reforms that previously, under those types of policies, improved GDP by 2½ per cent on their predecessor reforms, following the Hilmer report.

In the building industry, we need to ensure that microeconomic reform is returned as well. Australia has high building costs—some four to five times higher than France, as the estimates are. The Business Council of Australia found that construction costs are now 40 per cent higher than those in the US, let alone what they are in Asia. Construction costs in the past decade grew twice as fast as inflation. There is one reason why we need to re-establish the Australian Building and Construction Commission and the associated Building Code: it assists to ensure that we have proper microeconomic reform and can remove the scourge of corrupt deals and other things that have been, sadly, part of the history of that industry. The reason we have to do it is that it is good for the economy. The reason we have to ensure that this commission and this code is back in place is that it supports jobs and growth in the economy.

The Building Code and the infrastructure that was built when it was in place ensured that, in Victoria for example, the Box Hill Hospital was delivered on time at no extra cost—in fact, it was delivered ahead of schedule. More importantly, prior to the creation of the ABCC, the average number of working days lost to industrial disputes in the construction industry was five times the rate in other industries. Once it was established, that rate fell to just twice—from five times down to just twice.

Ms Burke interjecting—

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