David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Cash. Will the minister update the Senate on the impact that industrial lawlessness has on small and medium-sized businesses, and subcontractors in Australia's construction sector?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

I thank Senator Bushby for his question. There are over one million people employed in the building and construction industry in Australia. That is approximately 165,000 electricians, 124,000 carpenters, 87,000 plumbers, 46,000 painters, 43,000 civil engineers, 35,000 concreters, 34,000 plasterers, 33,000 bricklayers, 32,000 tilers and 26,000 cabinetmakers, along with many, many other tradies in this industry. The overwhelming number of businesses in building and construction are actually small businesses. There are approximately 300,000 small businesses helping to build Australia.

But it is a fact that it these businesses that are least able to withstand industrial lawlessness and intimidation. It is these businesses that are least able to afford the inflated costs that result from CFMEU pattern agreements. I have met with many, many subcontractors who, when I meet with them, explain to me the horrendous intimidation and standover tactics they are subjected to. The first thing they say to me when they meet with me is that, 'We cannot have our names disclosed or our businesses disclosed, for fear of retribution and for fear that we will be blacklisted by the CFMEU within this industry.'

On this side of the chamber, we believe in small and medium business. We believe in giving everybody in Australia who wants to have a fair go a fair go. When there is a policy in place that encourages cartel-like behaviour between one union and the big end of town to the detriment of the little man, something is wrong. That is why we need to restore the Australian Building and Construction Commission. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I do have a supplementary question. Will the minister advise the Senate how Australians would benefit from a more lawful and productive building and construction sector?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

Again, this is a sector that contributes to eight per cent of our GDP, employing more than one million Australians. It is our third-largest employer in Australia. When you have a problem with your third-largest employer in Australia, it is a problem that flows through to the rest of our economy, ultimately impacting on all Australians. It is estimated that the cost of public infrastructure in Australia is 30 per cent higher—in particular due to the high level of industrial disputes in the construction industry.

In recent years, the CFMEU have been found guilty of breaching industrial law on projects across Australia. These projects include office buildings, apartment buildings, shopping centres, hospitals, universities, schools, roads, stadiums, hotels, medical research facilities and aged care facilities. The list just goes on and on. No project is spared from this type of industrial action.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Bushby, a final supplementary question.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Will the minister advise the Senate of the economic benefits of a more productive construction industry?

Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Link to this | Hansard source

As I say, it is our third-largest industry, employing more than one million people. There are 300,000 small business involved in this industry. These are the people who are quite literally building Australia. When there is a problem in that industry, it flows directly through the rest of our economy. Currently, two-thirds of working days lost due to industrial action are in the construction industry. The rate of industrial action in the construction sector is now, in the June quarter, nine times higher than across all other industries. Since 2012, the rate of disputes in construction has increased by 40 per cent while across all industries the rate of disputes has declined by 33 per cent. Again, when there is a problem in such a vital industry, as policy makers we need to do something about it.