Key infrastructure players call for reform

Key industry groups involved in delivering the majority of the Australian Government's record $110 billion investment in infrastructure projects are calling for urgent reforms to the sector. In a joint letter to the parliamentary inquiry examining procurement practices for government-funded infrastructure, the peak bodies urge the Federal Government to lead reform of how major projects are procured nationwide.Australian Constructors Association chief executive officer Jon Davies said government procurement processes were a major contributor to an industry crisis.“The building and construction industry has the highest rates of insolvencies in Australia and productivity growth over the last 30 years trails that of other significant industries by 25 per cent,” Mr Davies said.“Women make up only 12 per cent of the industry’s workforce and our workers are six times more likely to die from suicide than a workplace incident.“For these, and other reasons, the industry is struggling to attract and retain sufficient people to undertake the pipeline of work ahead of us. The government is essentially relying on a broken industry to rebuild the economy.”Consult Australia chief executive officer Nicola Grayson said the joint letter demonstrated the seriousness of the situation and that industry was aligned in recognising the need to address the challenges. “Reform of the magnitude required will only happen through greater collaboration across all levels of government and in consultation with industry," she said.“In particular, the Federal Government, as a direct procurer of major projects and as a significant source of funding for jurisdictionally led projects, can play a major role in resolving these issues and supporting the sustainability of the sector and its supply chain.”The 14 signatories to the letter include Engineers Australia, Roads Australia, Ai Group, the Queensland Major Constructors Association, Australasian Railway Association, Australian Institute of Quantity Surveyors, Australian Owned Contractors, Building SMART Australasia, Infrastructure Partnerships Australia, the Infrastructure Sustainability Council of Australia, Lean Construction Australia and New Zealand, and the NAWIC National Board. The House of Representatives Standing Committee on Infrastructure, Transport and Cities is tasked with inquiring into and reporting on procurement practices for government-funded infrastructure and the potential to enhance the sovereign capability of the Australian industry, with particular reference to: existing infrastructure pipelines and related supply requirementschallenges and opportunities with existing procurement practices, including frameworks, standards, rules and norms, and intersections between tiers of government and the private sectorchallenges and opportunities to enhance Australia’s sovereign industry capability, including for Australian owned businesseslessons from other Australian jurisdictions and other portfolio areas, including Defence’s industry capability approacheshow Australia can balance its international obligations with maximising local content opportunities, including by leveraging foreign direct investmentalternative procurement models, including reference to international examples.

Key infrastructure players call for reform

Industry Queensland

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