The Australian Construction Industry Forum (ACIF) is alarmed by the reported decision to discard the COAG Review Panel on Construction Costs and Productivity.
"ACIF had welcomed the review as a way to focus on opportunities to lift the structural and operational performance of the industry," said Executive Director of ACIF, Peter Barda.
"The construction industry employs around a million people and generates more than 10% of GDP, and this review had the potential to spotlight ways to deliver more value to all Australians."
"It's a pity that COAG couldn't get this piece of its program right," he added.
Acting Chief Executive Officer of Master Builders Australia, Richard Calver, agreed with Mr Barda, saying the review had the potential to deliver an action agenda for tackling unnecessary cost pressures.
“Construction is currently experiencing a downturn in activity and it was hoped the review would assist the industry so it can better play its vital role in contributing to the national economy and in creating jobs,” said Mr Calver.
“It’s a missed opportunity to review the inefficient development taxes, charges and levies and red tape that slow down the industry.
“It’s also a missed opportunity to review the role labour and workplace policy has in driving up the cost of construction and public infrastructure.
“Labour costs account for a substantial share of total commercial construction costs. It’s a very important cost consideration, especially with the increase in union militancy and days lost due to industrial action experienced since the abolition of the Australian Building and Construction Commission.”
According to Mr Calver, Master Builders will work with all levels of Government to provide assistance that could help to resurrect the review.
The ACIF and its members are preparing a series of recommendations to lift productivity in the industry, and will be seeking bi-partisan support for them throughout the year.
