How the State Government is wasting huge amounts of money and holding back regions
Construction chiefs say the State Government is wasting huge amounts of money by requiring regional builders fork out double the local market pay rate – and claim the money would be better spent constructing new hospitals, schools and infrastructure.
Future QLD
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STATE Government pay mandates are wasting huge amounts of money by requiring regional builders fork out Brisbane CBD wages double the local market rate and short-changing taxpayers and regions of new community assets, Master Builders says.
The pay rates for major State Government projects like Townsville Stadium, Cairns Convention Centre and the new prison in the Lockyer Valley mean less value for taxpayers and less work being done, deputy chief executive Paul Bidwell said.
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Mr Bidwell said the building sector was calling for an end of pay rates on State Government projects over $100m as well as requiring unions to give 24 hours notice to go on worksites.
Mr Bidwell said unions were weaponising workplace health and safety to shut down sites for “safety” complaints as ridiculous as toilet rolls stuck in toilets, dirty dishes and plastic Bunnings chairs in tea rooms instead of expensive industrial-rated seating.
He said a government “trial” required regional builders to pay the same wages on the Cairns Convention Centre as those on CBD megaprojects like Queen’s Wharf and Cross River Rail.
“A trade carpenter in Cairns paid under the Award receives $34 per hour for a 46 hour week, the market rate in Cairns is around $40 to $45 per hour and the pay rate under the Minimum Conditions for the Cairns project is $90 per hour,” Mr Bidwell said.
“If the government’s intention is to inject more money into the Cairns industry and economy by introducing the Minimum Conditions, why not do that at market rates, allowing the government to build more hospitals and schools rather than just paying more for each project individually.
“Minimum Conditions will do nothing but escalate costs in regional areas, undermine the government’s ‘Buy Local’ policy, and may cause federal code compliance issues for contractors.”
He said the industry needed red tape cut to help it create jobs and was calling for a shake up of regulator the QBCC.
While work on renovations was strong, it made up only a tenth of the sector and unit and home building were down over the past year.
“Total residential work is down 11.7 per cent for the year,” Mr Bidwell said.
“The sector is not going into the recession from a position of strength.
“Hence the importance of government stimulus programs such as HomeBuilder.”
Non-residential work has enjoyed a better year and is up 12.5 per cent, he said.
A State Government spokesperson said making unions give 24 hours’ notice to enter worksites for safety breaches is a throwback to the Campbell Newman era.
“The Palaszczuk Government has been rebuilding the Building and construction industry brick-by-brick since 2015 to ensure that Queensland tradies get paid in full, on time, every time.
“We are proud to have reinstated rights stripped away by the LNP Government including removing the 24 hour notice requirement for permit holders to enter workplaces to look into a suspected contravention of WHS laws.
“The Cairns Convention Centre expansion is on budget, having been costed with our Best Practice Principles, ensuring that workers in Cairns get paid as much as anywhere else in the state.
“The Palaszczuk Government has recognised the impact of COVID-19 on all Queenslanders and its $267 million Unite and Recover for Queensland Jobs stimulus package is already providing benefits. This includes the $100 million Works for Tradies initiative, the $21.25 million Household Resilience Program and the $10 million Seniors and Accessibility Assistance initiative.”
CFMEU state secretary Michael Ravbar dismissed the Master Builders concerns as “childish”, saying it was union organisers and delegates who had ensured builders complied with COVID rules that had avoided an industry shutdown.
“We will never be silent on safety, and we will never stop standing up for our industry,” Mr Ravbar said.
“Since the COVID-19 pandemic the CFMEU and MBQ, along with other industry bodies, have been working closely together to ensure that the construction sector continues to function.
“It is the access to job sites that our officials have that has helped ensure our industry has remained safe and almost COVID free, and avoid the lockdowns we’ve seen elsewhere.”