Building and construction industry groups have aired their outrage after the House of Representatives voted to ‘water down’ the powers of the Australian Building and Construction Commission.

They say decision to pass the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill brings the abolition of the Australian Building and Construction Commissioner (ABCC) a big step closer.

According groups including the Housing Industry Association (HIA), Master Builders Australia and the Australian Industry Group, this represents a blow to the building and construction industry, says the

The HIA issued comment that “the abolition of The ABCC will promote building industry chaos”

"The government states that it supports a strong cop on the beat, but these laws promote anything but that," said HIA industrial relations spokesman David Humphrey.

Humphrey stated that HIA is further concerned at the government's 11th hour amendments to the Bill that demands the new Building Inspectorate drop proceedings against a party where the accused has reached a 'settlement' with the party that it is alleged to have committed an offence against.

"Where it is alleged that illegal activity has occurred and is being pursued by the authorities, this amendment requires the watchdog to drop the case where the two parties agree it should."

"This is extraordinary, especially when you consider that many of the actual offences that are being committed on building sites involve some kind of intimidation or coercion."

"We are not talking about the regulator being asked to keep out of the day to day cut and thrust of industrial negotiations once the two parties reach a compromise - this is about being forced to drop proceedings that potentially involve industrial illegality, further threatening the rule of law in the industry."

Australian Industry Group Chief Executive Designate, Innes Willox, said: “The abolition of the ABCC will increase the risk of unlawful industrial action and coercion on building sites. Those who comply with the law have nothing to fear from the ABCC and the existing legislation,"

"The workplace relations reforms introduced as a result of the Cole Royal Commission have been very successful. The ABCC and the Building and Construction Industry Improvement Act were central planks of the reforms. Today, the industry is a much better place to work and invest than prior to the reforms and this has provided huge benefits to employers, employees and the community.

"However, damaging and unproductive industrial relations practices have been creeping back into the construction industry and a strong regulator needs to be maintained to ensure that industrial practices are lawful and appropriate.

"Unless a strong, well-resourced regulator and strong legislation is maintained, the risks associated with industrial lawlessness will again be priced into construction contracts, at great cost to project owners (including Governments) and the Australian community," Willox said.

Master Builders Australia is now calling on the Senate to reject the last minute changes moved by the Greens to the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2011 that was passed by one vote in the House of Representatives last week.

Wilhelm Harnisch, CEO of Master Builders Australia said: "Those who voted for the last minute amendment have failed the community.

"The so-called independent agency will have no power to commence or continue legal action if a matter is settled between the parties.

"This means the unions will be able to pressure employers to settle matters, including issues of coercion, reinforcing the very behaviour the law is designed to combat".

"The amendments must be rejected by the Senate otherwise the law will make a mockery of the new enforcement agency, the Fair Work Building Industry Inspectorate, as it will not be able to continue or commence prosecution of unlawful behaviour.

"The last minute amendments will also mean that the Building Industry Inspectorate will not be able to formally report on these incidents. The Government has played into the hands of the building unions who will then claim that violence, coercion and intimidation have been eradicated and therefore that a strong cop on the beat is no longer needed because the official statistics will tell a lie," Harnisch said.

"The 'left-field' amendment coupled with the proposed 'switching off' provision will introduce unacceptable legal concepts that no other Government agency suffers. The new Building Industry Inspectorate will be boxed in at every turn.

"The Senate cannot ignore the findings of the Cole Royal Commission, the Government's own Wilcox inquiry and the long list of damning heavy fines against unlawful industrial behaviour by the building unions. All of the evidence points to the continuing need for a strong cop on the beat. This Bill just does not deliver on that promise,” Harnisch concluded.