The Government’s Bill to abolish the Australian Building and Construction Commissioner (ABCC) should be rejected by Parliament, say the Australian Industry Group and Australian Constructors Association.

Master Builders Australia yesterday labelled the Bill to replace the Australian Building and Construction Commission (ABCC) with a toothless tiger as a potential blow to the industry's productivity and to community welfare.

Australian Industry Group chief executive Heather Ridout said:

“The ABCC is carrying out a vital role and is needed today as much as ever. Those who comply with the law have nothing to fear from the ABCC and the existing legislation."

Ai Group and the Australian Constructors Association have lodged a joint submission to the Senate Committee inquiry into the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill.

"The submission argues that 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”, said Ridout.

"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," Ridout said.

Richard Calver Acting CEO of Master Builders said "The community must not pay the price of persistent unlawful behaviour in the commercial building industry. The Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2011, now the subject of a Senate Committee inquiry, would give a green light to building unions to take even more unlawful industrial action.

“The Bill would reduce the maximum fines payable for unlawful action to one third of the current levels.

"This Bill, if passed, will adversely affect productivity. The industry's labour productivity since 2002 has out-performed predictions based on historical performance relative to other industries by 7.7 per cent. Multi-factor productivity in the industry was no higher in 2000-2001 than 20 years earlier but then accelerated by 14.8 per cent in the six years to 2007-2008. These productivity statistics are unambiguous.”