Senate Education and Employment Legislation Committee, , 2:59:18 to 3:03:34
The hearing addresses concerns from the Master Builders and HIA regarding regulatory duplication and the burden on small residential builders. The department discusses the interplay between different procurement codes and the goal of proportionality in regulation.
Topics: Workplace relations, Infrastructure
Speakers: Senator Matt O'Sullivan, Speaker 20, Greg Manning, Sarah Godden, Unknown Speaker
The good segue, the HIA submission says that the conduct behind these standards, coercion, bribery, intimidation, and legal financing is is already unlawful, and that the gap is not in the law. The gap is in fact in enforcing it, which uh which of the 12 matters in the Minister's first and May release are not already unlawful under existing Commonwealth or state law. I think I think Senator would need to take that one on notice because there is a lot of the questions. The detail of it, but in terms of the theme that I'm discussing.
One of the matters put forward as something submissions might be received on went to whether or not there should be a fit and proper test for participants in the construction industry, such as head contractors. So I don't think that's a matter that is regulated at the moment, for example.
And there were a number of matters in that original list that go to sort of broader objectives for the construction industry. So things like you know engagement of apprentices are not typically covered by a legality.
You do understand that for construction they're already dealing with multiple layers of complexity when it comes to regulations and the code and everything that they have to contend with. It's important not to have duplication and not to overburden this sector that is already under strain and already got significant increased costs. We've got a housing problem that's worse than it's ever been in this country. We've got construction costs on infrastructure projects cross-country ballooning and going out of stepping out of control. Duplication and complexity is a major problem. What confidence can you give industry that this is not just going to add an additional layer?
So Senator, that's why we acknowledge the government acknowledged that explicitly in the discussion paper and sought views on that because it is important and you know we do recognise that there and the government has been very clear in recognising industry's concerns and seeking views.
I would just add to that, said that it's probably worth positing that this work in the broader context in the sense that you know to go to the point about around industry and pick up Ms. Ms. Godden's point. I mean, industry's been working with government and employee organisations about how to improve the culture in the construction industry generally as well. That's that's why they established that chart of it the minister referred to earlier. And in a way, the standards represent the government's efforts to align its um its work and funding to the to those industry efforts to improve the culture as well, but as Ms. Godden said, but in a way which doesn't go to go to your point at a disproportionate level of regulation.
Thank you. I just want to wrap up for the chair. The um the HIA says more than 98% of residential construction businesses have fewer than 20 employees and that residential builders would carry the heaviest proportional burden. Uh two questions. Will the will the standards apply to residential builders on Commonwealth funded housing? For example, projects funded through the Housing Australia Future Fund. And my second question is has Treasury been consulted on any of this at all?
So again, sorry, Senator, but that consideration of application scope, it was a key focus of the discussion paper, and that included different subsectors of the construction industry, such as residential, so whether there should be thresholds or application of any standards to particular parts of industry was part of the consideration process and is and there no decisions have been made. In terms of consultation with Treasury, uh we work very closely with our counterparts at Treasury. We have established you know interdepartmental committees and uh I mean uh in terms of the National Construction Industry Forum, the Treasury uh portfolio through the housing um portfolio is represented through Minister O'Neill, who's also a member of the forum. So we work very closely with Treasury.
Okay. Thank you.