John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry and Innovation, Senator Lundy. Minister, is the government aware of serious community, industry and union concerns about the dangers associated with the apparent, widespread and increasing misuse of imported substandard building products, plant and equipment on Australian construction sites—including dodgy imported plywood, imported glass with similar associated risks for both workers and the public and dodgy imported structural steel and plant and equipment like cranes, slings, cables, wire rope, scaffolding, paints and adhesives?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

The government is aware of claims of substandard materials being imported into Australia and, like most enforcement issues, it is very difficult—practically impossible, in fact—to inspect every single shipment of materials that are imported into the country. The enforcement of standards, especially those referenced in the National Construction Code, is largely a responsibility of state and territory governments, but it is certainly the case that any issue which has a bearing on the health and safety of workplaces and communities more generally is something that is taken extremely seriously by the government.

Product failure on construction sites may depend on the way products are used on the building sites or whether the right products are being used for the right purpose. It may also depend on the quality of the product, which may or may not contravene Australian standards covering the goods. I certainly appreciate Senator Madigan's concern for maximising Australian content in major construction projects. The government's recently announced plan for Australian jobs will seek to increase the level of Australian participation and therefore the amount of Australian products in construction projects. A new Australian Industry Participation agency will work with local businesses to take advantage of opportunities to work on major projects or tap into global supply chains of international companies. Our reforms to anti-dumping rules mean Australian industry can compete in our domestic market on a level playing field. We are investing $24.4 million to increase the Custom and Border Protection's investigative capability—almost doubling the number of investigators—and so making it easier for small to medium enterprises to access and use the anti-dumping system. It has been well reported that we are also establishing a new Anti-Dumping Commission to investigate dumping complaints for small to medium enterprises.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

I ask my first supplementary, Mr President. Given that Australia's rights under the World Trade Organisation's Agreement on Technical Barriers to Trade allows the technical regulations to field legitimate objectives, which the agreement states, includes the protection of human health and safety and that Australia's rights under the agreement allows for reasonable spot checks within Australian territory, does the government consider the current regime for the enforcement of standards on imported building products adequate?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I am glad the senator has taken the time to familiarise himself with the relevant provisions, particularly in reference to the WTO Agreement on Technical Barriers to Trade and our ability to impose product quality and safety standards and imported and, indeed, domestically produced goods. Reasonable spot checks are allowed to ensure compliance with the relevant safety and other standards. This is true for domestically produced as well as imported products.

Spot checks are conducted on numerous products in Australia to ensure compliance with standards by both state and federal governments, but I am sure the senator is not suggesting that this enforcement regime be extended to literally every imported and domestically produced good. Such a regime would obviously introduce all of the understandably prohibitively costly processes for both government and the economy as a whole. Nonetheless, the spot check approach allows for a standard to be sustained in this way. In this regard, we do have confidence in the standards, but they require constant attention, as one would expect.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

On a second supplementary, in light of the fact that these substandard imported building products appear to be being utilised extensively, even in the construction of new government department buildings—for example, the apparently imported glass window panels in the ASIO building, which kept falling to the ground and are reportedly 30 per cent delaminated even before the public servants have arrived for their first day of work there—can the government provide details of how it intends to improve the current procedures which allow these substandard materials to enter Australia?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I am sure Senator Madigan is not using the citing of just one example as a basis to indicate a fundamental problem. One of the issues we have in front of us is a whole series of measures contained in the job statement, two of which I have mentioned already—the Australian industry participation plans and the authority that we have established. Since July 2012 the AIP requirements have been extended to Commonwealth procurement grants and loans as well as grants worth $20 million or more to state and territory governments. Summaries of these Australian industry participation plans are now published online and include details of how project proponents will acquire and use information on Australian industry capability and how they will communicate these opportunities to local suppliers. (Time expired)