Qld LNP government targets CFMEU’s Best Practice Industry Conditions deal

The LNP will move to weaken the CFMEU’s grip on Qld construction, claiming its Best Practice Industry Conditions deal causes 22,000 fewer homes to be built and creates rental spikes.

• Your say: ‘Drain the swamp’
• CFMEU’s history in Qld

The state government will move to weaken the CFMEU’s grip on the construction industry and Best Practice Industry Conditions policy, labelling it a rotting sweetheart deal inked with Labor.

The Courier-Mail can reveal new Queensland Treasury “scenario modelling” started under Labor and handed to the LNP government found the controversial BPIC policy could cause up to 22,000 fewer homes being constructed between this financial year and 2029-30.

It also found BPIC could drive rents 7 per cent higher.

Housing and Public Works Minister Sam O’Connor ­argued the analysis indicated a lack of productivity was affecting the private construction sector.

“The impact is undeniable and falling productivity under Labor has been a handbrake on delivering the housing supply Queenslanders so badly need,” he said.

“We need to pull every lever we can to ensue we can start delivering homes again in Queensland and get our construction sector going.”

Analysis from Master Builders in August found BPIC, if exercised to its full extent, could add $290,000 to the cost of a two-bedroom apartment.

Transport Minister Brent Mickelberg said he was focused on “stopping the rot”, but was unable to say how BPIC would be disrupted.

“We’ll consider any measure that delivers more infrastructure on time and on budget for Queenslanders,” he said.

“I’m not going to go off half-cocked at this point in time and suggest I have the solutions to those issues after a week in the job.

“I’m confident that the state government can address the drivers that are causing these blowouts.”

The LNP said declining productivity on Queensland construction sites led to billions in cost escalations and months-long delays.

Yamma Bridge under construction at the Boggo Rd site, Dutton Park

Mr Crisafulli on Tuesday revealed Cross River Rail would cost Queensland taxpayers almost $7bn, with Labor quietly signing off on a $494m increase to the state’s largest infrastructure project on the eve of the state election.

Mr Crisafulli and Transport Minister Brent Mickelberg revealed the figure after Deputy Opposition Leader Cameron Dick and transport spokesman Bart Mellish said on Monday the cost had only risen by $170m.

However, Mr Crisafulli said the $494m increase in the cost of the Cross River Rail project was in addition to the $170m released by Labor.

“It was signed off in September, and no one from the former government thought that Queensland deserved to know about a $494m blowout relating to Cross River Rail,” he said.

“What’s particularly concerning is yesterday, in a bid to try and airbrush history, we had members of parliament coming out revealing figures that are categorically untrue and seriously undercooked to try and get ahead of the game in crab-walking away from their record.”

It takes the project’s price tag to a mammoth $6.9bn – $1.5bn more than it was slated to cost when it was announced in 2017.

Deputy Opposition Leader Cameron Dick said the supposed blowout was cash “set aside” for future negotiations on the project.

“Queenslanders can now count on the Cross River Rail project costing at least $500m more because of David Crisafulli’s desperation to make a political point,” he said.

“Variations to contracts for major projects are not uncommon.

“Governments don’t discuss those funding figures because it jeopardises the negotiations with the major contractor … you don’t show your hand publicly because you may end up costing taxpayers more.”

Train station works at Pimpama on the Gold Coast

Mr Mickelberg attributed the cost escalation to the “sweetheart deal” between the CFMEU and state government that led to a decrease in productivity.

“There are other areas on Cross River Rail where the blowouts are even worse, and we are continuing to ask questions and try to uncover the truth,” he said.

A CFMEU spokesman said most construction projects were not covered by BPIC.

“The LNP government is lying to Queenslanders about the source of cost blowouts on taxpayer-funded infrastructure projects in a bid to scapegoat the CFMEU and lay the groundwork for anti-worker industrial relations policies,” he said.

“In fact, most of Queensland’s major road and rail projects are not covered by CFMEU enterprise agreements and do not adhere to the Best Practice Industry Conditions policy.

“Workers know the LNP is grandstanding against the CFMEU as a softening up period to justify the return of Campbell Newman-era right-of-entry restrictions for union officials to investigate safety issues onsite.”

Separately, Industrial Relations Minister Jarrod Bleijie said a report surveying Workplace Health and Safety staff during the Labor government, which the former administration did not release, revealed widespread cultural problems in the department due to its relationship with the CFMEU.

“Inspectors reported working in fear of complaints being made against them if they fail to comply with external stakeholder requests on site … occupational violence and aggression and low job support, aggression, intimidation and some reports of physical and verbal violence from external stakeholders towards staff were commonly reported,” the report said.

“Some inspectors reported significant trauma and anxiety symptoms of having been exposed to multiple instances of workplace occupational violence and aggression … becoming physically sick before attending union jobs, taking sick leave, being diagnosed with mental health disorders.”