LNP flags budget savings on 2032 venues after union policy bypass

The news

Queensland’s LNP government believes it can find cost savings on looming 2032 Olympic Games venue projects by bypassing Labor’s previous union-friendly procurement policies.

Deputy Premier Jarrod Bleijie confirmed on Friday he has not sought additional federal funding contributions for the $7.1 billion worth of such upcoming joint infrastructure spending.

The proposed stadium upgrade and indoor arena in Bleijie’s Kawana electorate. The arena plan has attracted his ire because it would displace a rugby league club.Credit: Sunshine Coast Council

Pressed on this at a media conference, Bleijie said because the new government had paused the so-called Best Practice Industry Conditions (BPIC) approach, “I think we can get the cost down”.

“I think you’ll see some good revised cost estimates coming out from the new government,” he said.

Why it matters

The former government policies set pay and conditions on state-funded projects at union-negotiated levels, positioning the state as a model client.

Announcing the move on Thursday, Bleijie said it would allow smaller firms without union agreements or pre-approval under the policy to compete.

A recent industry-commissioned report recommended companies with CFMEU agreements add 33 per cent to quoted project costs – a figure the LNP has seized on to frame the policies as a “CFMEU tax”.

But the floor set by the policies covers workers beyond just CFMEU members, with other unions and Labor warning a U-turn could undermine pay and safety, and timely or on-budget delivery of work.

What they said

Bleijie has said existing contracts would be honoured, with potential talks to try and boost site productivity, but suggested costs could be shaved from work on the Sunshine Coast outdoor stadium.

Initial estimates of a combined $290 million bill have jumped to $410 million, and Bleijie said the new indoor stadium and outdoor stadium upgrade may be reopened for tender.

“I would expect the 100-day review, I would expect those types of projects would be reopened to the market ... without the CFMEU tax applied to it,” Bleijie said.

Bleijie flagged, but did not name, transport and main roads department projects which could also see such an outcome out of the looming 100-day review of 2032 Games planning.

That review will also cover the joint state-federal funding arrangement. Bleijie again dismissed federal concern about this, saying it was due to be renegotiated in February.

“We’re going to get great value for money, we’re going to get great venues, and we’re going to get great competition, which is great for workers because there’ll be more jobs and opportunities.”

Deputy Premier Jarrod Bleijie at Friday’s media conference

Another point of view

Federal Transport Minister Catherine King was contacted for comment through her office.

In a statement responding to the LNP’s Thursday announcement it would temporarily pause the use of BPICs until a re-established state Productivity Commission reviewed the building industry, the peak union movement body was scathing.

“[This] signals the LNP is open to business with non-union contractors offering substandard wages and conditions. A non-union sector will also bring poor safety placing the lives of thousands of Queenslanders at risk,” Queensland Council of Unions general secretary Jacqueline King said.

While peak construction bodies welcomed the move, Hutchinson Builders chair Scott Hutchinson said unprecedented construction demand was to blame for productivity issues.

Labour shortages facing the sector would allow workers to negotiate agreements with similar pay and conditions to BPICs, he told News Corp.