David Crisafulli says Labor’s union-backed BPICs would drive up rents by 7 per cent

A deal between Queensland ­unions and the former Palaszczuk-Miles Labor government could jeopardise housing targets and drive up rents by 7 per cent, treasury modelling reveals.

Queensland Premier David Crisafulli during a media conference at the site of a new housing development at Capalaba. Picture: Liam Kidston

A deal between Queensland ­unions and the former Palaszczuk-Miles Labor government could jeopardise housing targets and drive up rents by 7 per cent, state Treasury modelling reveals.

As new Premier David Crisafulli refused to completely scrap the union-backed Best Practice Industry Conditions, dubbed the “CFMEU tax”, he released new department projections that revealed the policy could result in 22,000 fewer homes being constructed in the next five years.

Under the BPIC, contractors tendering for major government-funded projects are forced to negotiate agreements with unions that set a high floor on conditions, including double pay when it rains and up to $1000 a week for workers who travel more than 50km to a site.

Workers who use their own mobile phone are paid a “technology allowance” of $100 a week and all work ceases if temperatures reach 35C, or 29C and 75 per cent humidity in southeast Queensland.

Premier David Crisafulli during a media conference at the site a new housing development in Capalaba. Picture: Liam Kidston

Queensland’s latest BPIC, published by the Miles Labor government in March, sets successive 5 per cent pay increases each year until 2027 and 300 per cent loading for working on and between Christmas Day and New Year’s Day or Good Friday and Easter Monday. Workers also receive 26 rostered days off a year, on top of public holidays.

The construction sector has blamed the BPIC policy for cost hikes and productivity blowouts across the sector.

On Wednesday Mr Crisafulli renewed his vow to reinstate the Productivity Commission to conduct a review. “We are actively looking at ways that we can return productivity to job sites across this state, and when you see the figures Queensland is ground zero when it comes to falling productivity – that must change,” he said.

“It is a sweetheart deal, and the only winners were a handful of politicians and a handful of dodgy union people. Whether you rent, whether you want to buy, whether you’re vulnerable, these deals have locked Queenslanders out of the market.”

Asked if he would abolish BPICs altogether, Mr Crisafulli said: “We are actively working on what the solution looks like.

“These are my four non-negotiables: workers well paid, workers safe on job sites, contracts to be adhered to and productivity to return to Queensland.”

Opposition Leader Steven Miles claimed the Treasury modelling was “made up” and he “wouldn’t put much stock” in it.