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Swift progress on ABCC to inject confidence in resource investment

AREEA has welcomed the Abbott Government’s move to swiftly restore the Australian Building and Construction Commission (ABCC), saying it will boost investor confidence in building new resources and related infrastructure projects in Australia.

AREEA has long advocated for the return of the ABCC following the former government’s unwarranted dismantling of the building industry watchdog in 2012.

The Australian newspaper last week reported Employment Minister Eric Abetz is taking significant steps to restore the ABCC in line with the government’s pre-election commitments.

“The resource industry is very pleased to see urgent progress being made towards bringing back the ABCC,” says AREEA executive director, industry Scott Barklamb.

“Every day Australia goes without a strong independent regulator to enforce the rule of law on construction sites, is a day in which our global reputation as a reliable and cost competitive place to invest and build new projects remains in jeopardy.

“The Cole Royal Commission found evidence of an industry culture characterised by a widespread disregard for the rule of law and rife with union thuggery and intimidation. Without a tough cop on the beat, this vital sector will too often be held captive to its worst elements.

“It was wrong of the previous government to ignore the Cole findings and remove the ABCC for political reasons. Labor watered down their version of the regulator (the FWBC), substantially reduced penalties and made it near impossible for the regulator to prosecute unlawful action.

“With around $200 billion of new resource projects under consideration, stringently upholding our industrial laws will help deliver the confidence to move these projects into the committed stage.

“Enforcing an effective national code of conduct will ensure both employers and employees in the construction sector comply with Australia’s workplace relations laws, and will deliver strong economic outcomes for our sector and the wider economy.”

AREEA has also long maintained that a returned ABCC must have clear application to both onshore and offshore construction activities and welcomed this clarification in the Coalition’s Improving the Fair Work Laws policy.

“Clarifying that the ABCC’s jurisdiction extends to offshore projects sends a clear message on the national significance of Australia’s offshore resource sector,” Mr Barklamb says.

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