David Janetzki unable to verify accuracy in estimated $17bn in savings from axed BPIC deal

Qlders will remain in the dark for months on the true taxpayer savings after the government scrapped the Best Practice Industry Conditions policy, David Janetzki has admitted.

Queensland Treasurer David Janetzki. Photo: Steve Pohlner

• Union ‘sweetheart deal’ explained

The $17bn taxpayers were told would be saved by cancelling controversial pro-union building conditions was only an estimate, with Treasurer David Janetzki unable to back in the veracity of the numbers.

It means Queenslanders remain in the dark on how much will truly be saved by scrapping Best Practice Industry Conditions (BPIC) for at least another six months while the new Productivity Commission undertakes an investigation.

The LNP, two weeks after being elected to power, suspended mandatory BPIC on all future state-funded projects over $100m, with Mr Janetzki claiming it would save the state $17bn.

Asked on Wednesday how he calculated the $17bn figure, Mr Janetzki said it was based off “treasury estimations”.

“The $17bn was Treasury estimations,” he said.

“That was the cost of BPIC estimated by Treasury modelling, was a $17bn additional cost over a five-year period.”

Mr Janetzki confirmed that modelling was conducted off a total figure of all projects “on the books” over the five-year period.

Productivity Commissioner Angela Moody and Treasurer David Janetzki. Picture: Steve Pohlner

The Productivity Commission headed by newly appointed Commissioner Angela Moody will now assess exactly how procurement and contracting arrangements of government projects, including BPIC, affect productivity in a six-month inquiry into the construction sector.

“I expect as part of the Productivity Commission’s referral, further work will be undertaken in that regard to understand not just the costs of Best Practice Industry Conditions, but all regulation, all policy decisions of government and how they feed into construction costs,” Mr Janetzki said.

There are currently no set productivity targets for the state, with Mr Janetzki saying he wants Queensland to catch up to the “national average”.

“Productivity over the last five years have been measured in Queensland at 0.6 per cent and nationwide, it was 1.4 per cent,” he said.

Mr Janetzki’s broader fiscal strategy hinges on improving productivity across the board, as the government juggles cost blowouts, the housing crisis and looming Olympic infrastructure deadlines.

With his fist budget hand down now only two months away, the Treasurer refused to be drawn on whether he would have to prioritise Olympic projects over the hospital build program, which has blown out by $7bn.

“The balance will be met,” he said.

“I’ll have a lot more to say about that during the budget process.”

Mr Janetzki vowed that all pre-election commitments will be met, including his goal to reduce debt below the revised threshold of $218bn.

He also guaranteed the state would save the promised $757m in consultancy fees in the 2024-25 financial year, despite the government not propping up the firm tasked to do so until July.