Coalition Govt warns ABCC abolition will lead to more industrial unrest and increased costs

Today in Federal Parliament, the Gillard Government tabled the Building and Construction industry Improvement (Transition to Fair Work) Bill 2011 which will abolish the Australian Building and Construction Commission (ABCC).

The Victorian Coalition Government is strongly opposed to this Bill.

Far from improving the building and construction industry, abolishing the ABCC will give a green light to further unlawful behaviour and misconduct within the Victorian building and construction sector. This will increase the costs to Victorian taxpayers of publicly-funded projects and undermine the Coalition Government’s ability to fund and build infrastructure into the future.

A strong ABCC is critical to containing construction costs, which are escalating in large part because of what is effectively pattern bargaining throughout the building industry and a persistent culture of unlawful industrial action.

The Gillard Government has not consulted Victoria on its policy to abolish the ABCC and needs to listen to the states and territories. On behalf of taxpayers, the Victorian Government funds significant infrastructure projects and has a direct interest in the fate of the ABCC.

The Gillard Government’s misguided abolition of the ABCC will send all the wrong signals to an industry already under pressure and will worsen the damage already caused to Victoria by hopelessly inadequate Federal funding of Victorian infrastructure projects and massive cuts to GST revenue.

The current head of the ABCC, Mr Leigh Johns, himself recognises that the industry still faces serious problems, warning in his Industry Update issued on 11 October 2011 that ‘unlawful industrial action persists as an area of concern for the industry… the ABCC will continue to hold those who break the law to account.‘

Because of the Gillard Government’s refusal to listen to the Coalition Government and others who have warned about the consequences of abolishing the ABCC, there may soon be no effective body in place to uphold the law on Victorian building and construction projects.