Editor’s view: Appalling lack of productivity amid cost blowouts

Queensland’s Big Build, a series of infrastructure projects that will cost us over the next four years about the same amount per minute as the Apollo program, just keeps getting more expensive, writes the editor.

Queensland’s Big Build, a series of infrastructure projects that will cost us over the next four years about the same amount per minute as the Apollo program, just keeps getting more expensive.

Earlier this month the Miles government revealed the projected cost of the Big Build for the next four years had ballooned from $89 billion to $107 billion – or an incredible $51,000 a minute.

However long-range forecasts from Oxford Economics Australia predicts that from 2028 the cost of construction on those major projects will increase by 4 per cent each year, potentially costing the state billions more.

But it isn’t uncontrollable factors like increases in the price of materials due to wars in Europe and the Middle East that is of most concern.

It is something that has spiralled on this government’s watch – an appalling lack of productivity.

Premier Steven Miles.

Oxford Economics Australia senior economist Adrian Hart pointed out that while wage rises on government job sites brought on by the Best Practice Industry Conditions arrangements weren’t necessarily a bad thing, the lack of a return on that investment was.

“Wage increases themselves aren’t the issue, it’s wage increases without seeing any productivity (increase),” Mr Hart said.

“If we could target some sort of stronger growth in productivity, have the metrics in place that could better measure that productivity because at the moment it is a little bit of a black box … we’d be able to better manage the costs of delivering infrastructure and the demands on labour and materials.”

As well as the head-spinning salaries that have to be paid for by taxpayers, workers on CFMEU sites are entitled to more flexi days and can, for example, walk off the job if it gets too hot.

Mr Hart said governments needed to ensure productivity rates and workforce strength were properly accounted for when setting infrastructure targets.

It will be quite a task, but at least the likely next premier of the state recognises the challenge.

Steven Miles, when questioned about infrastructure costs soaring because of the “CFMEU tax”, said he would never apologise for improving worker conditions and entitlements.

This is despite the fact that the improved conditions and entitlements are almost entirely delivered to men while teachers and nurses, who are usually women, miss out.

LNP leader David Crisafulli, on the other hand, declared in the Sunday Mail that he would take on the CFMEU.

David Crisafulli at Parliament House. Picture: Lachie Millard

“Whatever you call the (BPIC) arrangement, whatever slogan the government gives it, I just want to know that when a contract is signed that it is adhered to,” Mr Crisafulli said.

Mr Crisafulli on Saturday said an LNP review would focus on ensuring productivity was honoured on construction sites, with all unions to have a seat at
the table during the rework process.

“The framework that needs to exist is unions need to be there to make sure that workers are safe, well paid and productive,” he said.

“I think the vast majority of unions will welcome that.

“As to the CFMEU, I’ll let them determine how they want to conduct themselves.”

Change is almost certainly coming to the building industry – and it’s dearly needed.

We hope the CFMEU puts the interest of the state, and indeed of fairness, ahead of its own agendas.

But we are not holding out much hope.

Originally published as Editor’s view: Appalling lack of productivity amid cost blowouts