Warning QBuild could take work from small struggling builders

IT used to be a major force in construction in Queensland but plans to reinvigorate the State Government’s QBuild arm has sparked a warning about the impact on struggling builders.

STATE Government plans to reinvigorate its construction arm QBuild has sparked a warning it could steal work off small struggling builders.

Queensland Premier Annastacia Palaszczuk announced on the weekend that her government would rebuild QBuild by reopening its regional depots and employing an extra 100 trainees and apprentices each year.

Master Builders Queensland deputy chief executive Paul Bidwell said the proposal to beef up QBuild with new apprentices could put the organisation in direct competition with small builders facing one of their toughest times in decades.

Queensland Premier Annastacia Palaszczuk at the Queensland Labor State Conference on Sunday.

More than 1400 companies in the state’s construction sector have entered administration in the past five years, with losses totalling an estimated $390 million.

Mr Bidwell said QBuild, which had been wound down under the previous Liberal National government, has once played a major part in building and repairing schools, hospitals and other public facilities. “The way it used to work is that QBuild would would tender for something like a new shade area at local school and it would be up to the P&C or the school to accept it or not,” Mr Bidwell. “If anything they used to be more expensive.”

He said the government had not explained the new commercial footing under which QBuild would operate and there were fears it could undercut private builders.

“We would not want them to be any cheaper as they would then compete with the smaller builders,” he said. “These builders are already finding it very tough and the only thing that keeps them going is work on things like flood reconstruction.”

Mr Bidwell said governments had been withdrawing from doing their own construction projects for years in the belief it was most efficient for the private sector to do the work.

QBuild in 2003 undertook projects worth half a billion dollars but by 2017 the organisation, which has been renamed Building and Asset Services, was largely involved in project management. “They still do a little bit of building work but not much,” said Mr Bidwell. “It is hard to see the value for taxpayers in rebooting QBuild and how they are going to be more cost effective even in remote areas.”

Comment has been sought from the State Governnment.