The heads of the Master Builders Association Australia today confirmed that productivity gains in the building and construction sector will be reversed under Julia Gillard’s plan to abolish the industry watchdog, the Australian Building and Construction Commission.

 

MBAA CEO Wilhelm Harnisch and Head Economist Peter Jones told a House of Representative Economics Committee hearing into productivity that the productivity gains in the industry have been because of the massive reduction in industrial action. This reduction was brought about by the introduction of the industry specific laws and the ABCC.

 

Labor’s new building laws will weaken the power to stop strikes and unlawful activity therefore risking a return to the days of poor productivity.

 

According to the Master Builders, the ABCC has been a vital part in delivering these results and abolishing it will reverse the improved performance of this sector.

 

“Since 2005 we have gone from record high levels of industrial action to now being at record lows” said Mr Harnisch.

 

The building and construction industry makes a massive contribution to the Australian economy.

 

Returning to the dark old days in this industry will cost consumers more and reduce Australia’s economic performance.

 

Mr Harnisch also said that the ABCC had contributed positively to the improvements in safety on building sites and its removal will also endanger this performance.

 

This evidence confirms that Labor’s plan to remove a “tough cop on the beat” in the construction sector was foolish and placed the interests of unions ahead of the economy and improved productivity.