E&OE
Rita Panahi
Well the Albanese Government has just made its first big mistake within days and we’ll see the federal construction watchdog have its power stripped back. Sure the militant unions across the country are going to be celebrating that one. Workplace Relations Minister Tony Burke has announced that the Australian Building and Construction Commission powers will be absorbed by the Fair Work Ombudsman and other government departments in a move that has been slammed by a number of business groups. Joining me now to discuss is Shadow Minister for Employment and Workplace Relations, Michaelia Cash. These changes were announced by Tony Burke yesterday on the ABC, and Sky News has learned that the department failed to advise the Australian Building and Construction Commission that their powers were about to be stripped back. In fact, they found out when it was announced on television.
Senator Cash
Well, it’s not a great way to start the parliamentary year, is it Rita? I mean today what we have seen is the building and construction industry across Australia is in absolute chaos. They knew that the Albanese government was going to abolish the ABCC, but they expected at least a dialogue, you know, some constructive working with them, a transition plan, and what do they get? They wake up on Sunday to an announcement on Insiders. And I’d like to know when the ABCC themselves were actually told, 150 staff. The absolute contempt that the Albanese Government has for them is quite frankly disgraceful.
Rita Panahi
Well, they weren’t told before that announcement was made on television, that’s Sky News’ understanding, that they learned when it was announced on the ABC. And it’s a very funny way of governing if you ask me, but the government is assuring Australians that this is not going to see a return of militant unions ignoring the law. Can the police and the Fair Work Ombudsman step in here and do what the ABCC used to do so effectively?
Senator Cash
Can I just take you up on what the government says: this is not going to see a return to the days of old. Well, how can the government guarantee that because the last time there was no tough cop on the beat. We saw what happened with workdays lost due to industrial action. We saw the cost of building within Australia, MBA estimate, was around 30% higher. The ABCC, in the cases that it is brought before the court, has approximately a 91% success rate. And Rita, you and I know, that’s the courts of Australia saying, based on the evidence that the ABCC have brought before us, we find in favour of the ABCC. They have seen over $16 million in penalties handed down; the majority to the CFMMEU since we brought it back in 2016. They have recovered over $5 million in lost wages and entitlements. And in relation to subcontractors alone in the last financial year. progress payments that weren’t going to be paid, the ABCC has successfully got around $5 million of those progress payments for subcontractors. So you tell me, how can the Albanese government guarantee this?
Rita Panahi
Well, from what you’ve just said, they’ve been highly effective in doing their job which makes this decision all the more bewildering. So what are we going to see as far as construction costs? Will they be impacted by this decision? I mean, the industry says that they’re going to go up but the union say no, they’re actually going to come down because we’re not going to be living up to some of these unreasonable standards that are expected of us.
Senator Cash
I’m not quite sure what unreasonable standards they are referring to. And in particular, you and I both discussed previously the Patterson decision. The High Court of Australia, which found that the CFMMEU are a recidivist offender when it comes to breaches of the relevant legislation and the building code. They actually see the fines imposed by the courts as merely the cost of doing business. So you tell me, with that type of attitude, how do you not see a return to the days of old. That’s the High Court of Australia making those statements.
Rita Panahi
Now we’ve seen today business and industry groups come up. They’ve been absolutely irate about this decision, including the Business Council of Australia. The CEO there said they want to work with the government to safeguard the integrity of the building and construction industry. But I’ve got to ask here, where were these industry leaders during the election? Labor said they were going to do this, and yet we’ve had business leaders seem more interested in pushing woke leftist agendas that have got nothing to do with the running of their business than actually advocating on issues that impact their members.
Senator Cash
Well, those industry groups are about to find out what a Labor Government is not going to do for them. You asked previously about the potential economic hit. Well as you know, Master Builders of Australia, they commissioned Ernst and Young, EY, to undertake an analysis. And the EY report clearly states that if we go ahead, if Labor go ahead, with the abolition of the building watchdog, the ABCC, you will see a hit to our economy of around $47.5 billion between now and 2030. Now Rita, any thinking person would say, well, hey, hold on. Two years of COVID rising interest rates, rising inflation, the last thing that you would do is actually send into chaos the fifth largest industry in Australia. It provides 8% of GDP, employs over 1.1 million Australians, and one of your first acts as a government. And let’s talk about integrity. Because on the one hand Rita, they talk about having a federal ICAC, and yet on the other hand, they are prepared to say, but we’ll abolish the building regulator that actually looks out for the construction industry. You cannot have it both ways Mr. Albanese. You either believe in integrity or you don’t. But I suppose the answer to that one is, when you’re beholden to your paymaster, the CFMMEU, you will do anything. Integrity just goes out the window.
Rita Panahi
Michaelia Cash, thank you for joining us tonight.
Senator Cash
Great to be with you Rita.
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