No cash splash for community services: Controversial BPIC expanded

Community services won’t see the major cash splash enjoyed by construction workers despite the government extending its controversial Best Practice Industry Conditions policy to the sector.

Community services won’t see the same major cash splash enjoyed by construction workers despite the government extending its controversial Best Practice Industry Conditions policy to the sector.

Treasurer Cameron Dick has revealed a BPIC policy would be applied to social services organisations to improve procurement and aid in “delivering certainty” to the overworked sector.

The conditions include default five-year initial terms for service agreements with the government, except where justified by specific policy or service delivery grounds, and will ensure six months notice is given when contracts will cease.

Permanent employment conditions will be prioritised and indexation funding will be increased to 3.94 per cent.

Queensland Deputy Premier Cameron Dick. Photo: Dan Peled

Mr Dick did not say whether the government had decided to expand BPIC in an attempt to divert from stakeholder criticism about BPIC in the construction sector. Construction stakeholders have argued soaring wages under BPIC has added 30 per cent to major project costs while resulting in productivity falling off a cliff.

Mr Dick said the expansion to the community services sector followed advocacy from the Queensland Council of Social Service and the Australian Services Union.

“This is a protection that Queenslanders who work to help the homeless, to help victims of domestic and family violence and other Queenslanders working in the community sector truly deserve,” Mr Dick said.

Queensland Council of Social Service chief executive Aimee McVeigh, however, declined to comment on BPIC and how it might affect the sector.

“What is important is that whomever forms government maintains a commitment to deal with the crisis, continues with the social housing targets, and starts delivering at least 2000 new social housing dwellings per year for the next 20 years,” she said.

Opposition Leader David Crisafulli said the first task of a re-established Productivity Commission would be to find improvements in the state’s building industry following consistent delays and blowouts on major projects.

“I have always supported a well-paying and safe construction industry and … contracts must be honoured and productivity must improve,” he said.

Mr Crisafulli said the terms of reference for a regulatory review of the building industry would be formed after input from consumers, industry and unions. Australian Bureau of Statistics data this week revealed Queensland has become Australia’s strike state after losing a staggering 9400 works days to union action in a single quarter – more than all other jurisdictions combined.

While work days have been lost across a range of industries, construction sector leaders have warned the ongoing escalation in union strikes could significantly impact delivery on the state’s pipeline of infrastructure and housing projects.