David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

VAN () (): I move:

That the Senate take note of the document.

I rise to speak to No. 1 on the list, the Quarterly report by the Commonwealth Ombudsman under section 65(6) of the Building and Construction Industry (Improving Productivity) Act 2016 for the period 1 July to 30 September 2021. I have spoken a few times today in this chamber about acts of cutting out accountability and transparency that this new government have already undertaken that are going to take away protections of everyday Australians. I note in particular the destruction of the Australian Building and Construction Commission that was announced shockingly on Sunday and enacted yesterday by those opposite.

The role of the ABCC is to uphold the law and change behaviour to make the building and construction industry fair, efficient and productive. This is an important and just objective. I think everyone in this chamber would agree that no matter what industry you work in, you want it to be safe and that the rule of law that underpins our society is upheld. There is no doubt that our construction industry is key to Australia's economic recovery, accounting for 90 per cent of economic output and employing 1.5 million people, which is why the last quarterly report presented here today is vitally important, because it is a review of the powers exercised by the commissioner of the ABCC.

In essence, this document looks at whether the ABCC is acting accordingly under its responsibilities to ensure that law is upheld in the building industry, and that it is fair, efficient and productive. I think it would please everyone here today that the Ombudsman found, in their view, the ABCC was compliant against those requirements and standards, and that they 'encourage the ABCC to continue its existing positive practices'. By all accounts, one would say it is a remarkably positive review, which is why it now astounds me that we see a government looking to rip the ABCC's powers away from it.

The ABCC was created to tackle lawlessness in the construction sector. In recent analysis undertaken by EY, it outlined that abolishing the ABCC could create ongoing challenges which are more likely to be more economically disruptive than the current business environment. Specifically, labour costs could increase by around 8.8 per cent and there's a potential decline in productivity of around 9.3 per cent. Not only that but the output of the construction industry could fall by around $35.4 billion by 2030, and economic activity could decline by $47.5 billion—again, by 2030. This would come at a potential cost to taxpayers in the order of $9.5 billion and an estimated reduction in investment of $45.6 billion.

They are clearly needed now, more than ever. In just the last month, the Federal Court delivered record fines of $840,000 against the CFMMEU and its officials after the building commission prosecuted the union for coercive behaviour across multiple building projects. It is evidently clear that there are unions out there who think they're a law unto themselves, and they will bully and harass anyone who gets in their way. Tony Burke's announcement that the ABCC's powers were being pulled back to a bare minimum proves again that Labor will capitulate to their paymasters at the CFMMEU.

The last time the Labor Party abolished the ABCC, the costs of infrastructure rose to an astounding 30 per cent higher. That's a lot of hospitals, roads, schools et cetera that won't be built. Without the ABCC, the Labor Party are leaving workers defenceless against thuggish and unlawful behaviour. The commission's critical work in supporting subcontractors recovered $1.69 million owed to subcontractors following ABCC intervention in the 2020-21 period. This is money going back into the pockets of everyday Australians.

For all the Labor Party has talked of transparency and integrity, their actions could not be further from their words.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Order, Senator Van—

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

I seek leave to continue my remarks later.

Leave granted; debate adjourned.