Stuart Henry (Hasluck, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Minister for Employment and Workplace Relations. Would the minister inform the House of the settlement of a longstanding dispute between a union and a major construction company? Would the minister also update the House on the government’s reform agenda for the building industry?

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

I thank the member for Hasluck for his question and acknowledge his expertise in relation to the building and construction industry, particularly in his home state of Western Australia. The government has made significant progress in bringing about much-needed reform in the $50 billion building and construction industry in Australia. The Cole royal commission presented compelling evidence of an industry replete with unlawful activity, and corruption in some cases, resulting in extensive inefficiencies and increased building costs in the industry. Following the Cole royal commission, the government put in place a comprehensive reform package to address many of the problems identified by Mr Justice Cole in his report.

As the member for Hasluck intimated in his question, today the John Holland Group announced the settlement of a longstanding industrial dispute with the CFMEU. This dispute commenced before the government’s reforms were in place, and indeed the John Holland group said today that they ‘can’t see any need for us in our capacity as an employer to take that sort of action again, because there is now a comprehensive legislative regime in place that effectively prevents this sort of unlawful action’. As I said, there has been perhaps no other industry in Australia, such as the building and construction industry, that was in need of a comprehensive clean-up of activities which were taking place. The John Holland Group also reaffirmed its support for the government’s legislation, saying, ‘We welcome these new laws and are confident that they will assist in securing more productive workplaces.’

An important point about this is that the John Holland Group identified that, because of the reforms put in place, efficiencies are being generated in the order of 20 per cent on major building and construction projects in Australia. We know that industrial action in the past has cost up to $200,000 per day on major construction projects in Australia. Of course, that ultimately flows through to the consumers in Australia.

For another piece of data about the impact of these reforms put in place by the government one only has to look at the working days lost per 1,000 employees. In the March 2005 quarter, 43.5 working days were lost per 1,000 employees. In March 2006, which was the first period in which data has been recorded since the building and construction industry reforms were put in place, that figure of 43.5 working days lost per 1,000 employees had fallen to just 5.7 working days lost.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

That’s terrific! That is good news.

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

As the Prime Minister says, that is great news, and not just for the building construction companies.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

For the workers.

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

It is great news for the workers themselves and for all Australians, because they bear these costs ultimately. So this industry is a clear example of where this government has been prepared to meet challenges and put in place major reforms and we see the economic dividends for all Australians occurring as a result of those changes.

What stands in the way of these changes? Mr Beazley, the Leader of the Opposition, and the Labor Party, who have promised to rip up these reforms and to turn back this sort of efficiency which ordinary Australians are benefiting from as a result of these changes. They would rip up these reforms. They would take us back to the past. This proves once again that the Australian Labor Party under Kim Beazley, the Leader of the Opposition, is not interested in Australia’s prosperity. The only parties in this place that are interested in continuing to grow the prosperity of this country are the Liberal and National parties.

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! I remind the Minister for Employment and Workplace Relations that he should refer to members by their seat or by their title.