Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Hansard source

I move opposition amendment 8 on sheet 8024, which is being distributed:

(1) Clause 34, page 29 (lines 17 to 19), omit subclause (2), substitute:

     (2) Without limiting subsection (1), the Minister:

           (a) must issue one or more documents under that subsection in relation to procurement matters relating to building work; and

           (b) may issue one or more documents under that subsection in relation to work health and safety matters relating to building work.

        (2A) A document issued under subsection (1) relating to procurement matters must include a requirement that a tenderer for building work must demonstrate the following:

           (a) the extent to which locally sourced and manufactured building materials will be used to undertake the building work;

           (b) whether the building materials to be used to undertake the building work comply with relevant Australian standards published by, or on behalf of, Standards Australia;

           (c) the whole-of-life costs of the project to which the building work relates;

           (d) the net economic impacts of the project to which the building work relates;

           (e) the jobs impact of the project to which the building work relates;

           (f) whether the project to which the building work relates will contribute to skills growth.

[procurement matters]

This is an amendment that goes to the question of the code.

I am sure that senators would be aware of how important procurement is when it comes to the question of providing jobs for Australians in Australia. The value of Commonwealth procurement contracts in 2014-15 were around $59 billion. That is a very considerable amount of money in terms of our capacity in this country to shape the kind of economy we have. We should, I trust, in this chamber be seeking to develop an economy with a diverse industrial base, capable of generating high-skill, high-wage jobs. We should not be entirely dependent upon the vagaries of the commodity market. What we have, of course, are current circumstances where there is increasing casualisation of employment. And, in fact, because we are so dependent upon the vagaries of the commodity market, increasing numbers of Australians endure insecure employment.

Now, the unique purchasing power of the Commonwealth makes government procurement of crucial investment a fundamental instrument for industry policy. Good government procurement policy is about getting value for money, and I do not walk away from that proposition—good procurement policy is about getting value for money. But it is also about ensuring that we build the capabilities of this nation. It is not about featherbedding local industry; it is about making sure we put in place a framework to make local industries stronger and more competitive using the unique purchasing power of government.

More than a million people are employed in this industry, as we have heard repeatedly throughout this debate on the question of the building and construction industry in Australia. So how the government actually spends its procurement dollar in this sector has a real impact on Australian jobs, on Australian industries and on the broader economy. This amendment seeks to harness the purchasing power of government in the building and construction sector. It amends clause 34 of the bill, which deals with the Building Code. It stipulates that, in relation to procurement matters, a tenderer for building work must demonstrate the extent to which locally sourced and manufactured building materials will be used to undertake the work, whether the building materials used comply with the relevant Australian standards, and whether the whole-of-life cost of the projects can be identified. And it seeks to establish the net economic impact of the project to which the building work relates. This amendment seeks to ensure that we have an understanding of the job impacts of any project, and whether the project will contribute to skills growth.

What we have is an amendment that, we would all have to acknowledge, is not new. This is exactly the same amendment that my colleague Senator Xenophon moved in the last parliament, so it clearly has enormous merit. If Senator Xenophon was able support this and move this proposition in the last parliament, I think we are entitled to know why he will not support it today. I am disappointed that Senator Xenophon, while recognising the clear and obvious merit of this proposal—Senator Xenophon who has shown such gusto on these questions in the past—has not moved this proposition here today. I am looking forward to hearing Senator Xenophon on why that is the case. I trust that he will have a good explanation.

It is a shame that this amendment cannot be applied more generally to Commonwealth procurement rules. I acknowledge that that is a weakness, because we are dealing here with the question of the Building Code and only the Building Code. These rules ought to apply to the economy-wide purchasing power of the Commonwealth of Australia. These are propositions which are entirely consistent with our trade obligations. They are entirely consistent with the need to build Australia and build Australian jobs, and to ensure that the Commonwealth is able to use its purchasing power to support the Australian people. So I am surprised that we have not seen these measures being advanced today. As I say, this was Senator Xenophon's amendment in the past, and I am very pleased that the Labor Party has the opportunity to take up this proposition here today, and I hope my colleagues in the Senate are able to agree with this proposition and amend the bill.

I will make a general point: we want this country to be one that makes things. We want this to be a country that generates high-skill, high-wage jobs, and I am particularly concerned about what is happening with our steel industry. We know how important the steel industry is to the building industry in this country. But it is not just steel. It is aluminium, glass, plastics, cement—all things for which we have an enormous capability in this country, if we were only able to utilise it. We need to ensure that the Australian government meets its responsibilities to the Australian people and ensures that it uses its purchasing power to secure that.

A Shorten Labor government is committed to ensuring compliance with Australian standards, and we made this point very, very clear with regard to steel, for instance—the steel that is used in Australian projects, whether in the public or private sectors, must be compliant with the standards used in Australia wherever we use Commonwealth funded resources. We know there are too many examples where substandard steel has been used in building projects—whether it be bridges, roadworks or buildings. The evidence put before the Senate inquiry has highlighted the consequences of importing cheap, substandard steel which endangers the lives of Australians. A Shorten Labor government is committed to ensuring that we use Australian standards in all federally funded projects, and that we ensure that the antidumping regulators have the necessary powers to do their jobs effectively.

We have also committed to ensuring that we have a national steel advocate that is there to preserve the supply chain when it comes to providing steel to contractors who work in the building industry. We want to ensure that we use locally produced steel in federally funded projects, and then report on that. It is all very well agreeing to propositions about our pious commitment to these principles, but we need a provision to ensure that standards are used and are reported upon and that there is a compliance mechanism in place. We want to ensure that the thresholds for the Australian Industry Participation plans are lowered so that we can get these measures put into circumstances where we are able to ensure that standards are actually applied. That is why we want to double the funding for the Australian Industry Participation Authority and appoint the relevant board—which, currently, this government has been somewhat tardy in doing.

These are measures that were good enough for my good friend Senator Xenophon to move in the last parliament. I trust they are good enough for him to support now, and I am looking forward to the support of the chamber for these very worthwhile and worthy propositions to preserve Australian jobs and build Australian industry.