Building industry groups are demanding the Government review its decision to abolish the Australian Building and Construction Commission (ABCC).

This week the Australian Government announced its intention to introduce the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2011 into Parliament which will abolish the ABCC.

Master Builders Australia

Master Builders Australia CEO Wilhelm Harnisch said the current powers of the Australian Building and Construction Commission (ABCC) must not be abolished.

“The need for a strong cop on the beat is an imperative to counter the increasing incidence of unlawful industrial behaviour and industrial practices that work against productivity in the building and construction industry.

“The Government has given an undertaking to keep a strong cop on the beat and the building industry is looking to the Government to keep that commitment when it introduces the replacement Bill into Parliament.

He said repealing the current industry-specific laws and relying on the Fair Work Act penalties would reduce the fines to be applied to unlawful behaviour by two thirds.

“This would send the wrong message to the courts who have been handing down larger fines because, even in the face of a well-empowered watchdog, the unions continue to disregard the rule of law,” he said.

“It would also send a wrong message; a message that says that the government finds it acceptable for the community to pay more for its public infrastructure, its hospitals, its schools and other community facilities because of unlawful industrial behaviour.”

National Electrical and Communications Association

The National Electrical and Communications Association (NECA) called on the Government to review its decision or face the potential of lawlessness returning to job sites.

NECA’s Chief executive officer, Mr James Tinslay, said the ABCC has been effective in making the building industry more accountable and its removal is a worrying sign for electrical contractors and all businesses involved in the building and construction industry.

“The ABCC has cleaned up the building industry and made it more compliant since it was established following the 2003 Cole Royal Commission into problems in the building and construction industries. The findings and recommendations from that inquiry remain relevant today,” Tinslay said.

He said the building and construction industry has at its heart the specialist subcontractor model. The push by the union movement to restrict specialist subcontractors supplying goods and services to the industry will result in a significant increase in building costs for business and residential customers.

Australian Industry Group

Australian Industry Group’s chief Heather Ridout said: "The workplace relations reforms introduced as a result of the Cole Royal Commission have been very successful. Today, the industry is a much better place to work and invest.

"However, there are some worrying developments. Damaging and unproductive industrial relations practices have been creeping back into parts of 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 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," Ridout said.