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Big business conspires against lower construction costs

Wednesday, June 18, 2014

In extraordinary media reports yesterday, it appears that major construction firms have decided to keep construction costs as high as possible. If true, they are in the ‘business’ of conspiring against the people of Australia in defiance of the combined commercial weight of Coalition governments across Australia.

The issue is the construction code of conduct. Put simply, the Coalition governments have identified clauses in industrial relations agreements that push up construction costs. This threatens state and federal budgets and means fewer roads, hospitals and schools. But construction businesses make big money from the rorts.

The governments are saying that if construction firms want to tender for government work, the agreements must be cleaned up. Robert Gottliebsen describes how the major firms have colluded to defy the governments.

We think the firms are mad. The firms think the governments are going to cave in. But, on Ken Phillips' assessment, the Abbott and state Coalition governments have staked their political futures on bringing down construction costs. Here’s his assessment.

This is a major battle for Australia. Construction firms have a history of ripping off Australians through inflated costs. They want their milking of Australians to continue. Let’s hope the Abbott and state Coalition governments hold firm and win!


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