Labor’s plans for construction

It is official, Australia has a new Government led by new Prime Minister, Anthony Albanese under the Australian Labor Party (ALP).

Earlier in April, the ALP responded to a range of policy priorities set out by the Australian Construction Industry Forum (ACIF).

Here are some of ALP’s plans for Australian’s construction industry in its next few years in office.

One of Labor’s biggest policy is the $15 billion National Reconstruction Fund, its first step in rebuilding Australia’s industrial base.

It targets a wide range of industries with the main aim of creating more jobs, unlocking more resources, boosting regional areas and diversifying the economy.

Among the areas being targeted is the agriculture, forestry, fisheries, food and fibre sectors, with $500 million set aside to advance this particular area. Crucial to the construction industry is timber, with the industry now severely hampered by material shortage.

Some of the plans ALP has set out to achieve include planting one billion trees to meet Australia’s future timber needs.

It will also allocate funds to establish new plantations, expand the work of the National Institute for Forest Products and Innovation, continue the rollout of Regional Forestry Hubs to work with industry and state and local governments, and for grants targeted at better utilisation of logs and fibre.

Labor will also be committed to the removal of the water rule in relations to the Emissions Reduction Fund to help encourage growth in the plantation resource across the country.

In addition to material shortage, skill shortage is one of the main issues currently facing the construction sector, with companies having to push up rates and wages in order to attract and retain talent. Great for tradies and employees, but not so great for employers and consumers.

In response to that, the ALP is committed to fund fee-free TAFE and create more university places to tackle the skill shortages across the industry and across the country.

There will be 465,000 fee-free TAFE places for Australian students studying in industries with a skills shortage, including 45,000 new places.

These places will not only address the skill shortages directly within the industry such as trades people, but also create more jobs locally in affiliated sectors such as logistics, manufacturing and more.  

The ALP is also establishing Jobs and Skills Australia as part of a national partnership across all sectors - business, state and territory governments, and unions, education providers – to strengthen workforce planning and better predict future employment needs.

ALP said its fee-free TAFE places will support training courses for women in construction, with the hopes that its plans for cheaper childcare and closing the gender pay gap will further attract women into the sector and create a more diverse workforce.

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The ALP said it understands the difficulties Australians are facing when it comes to buying their own homes and is committed to help alleviate the burden.

The party is planning to help by contributing to the cost of a home by up to 40 per cent, and allow eligible buyers to buy a home with a minimum deposit of two per cent.

The scheme will be open to 10,000 Australians each financial year.  By making it easier for Australians to buy a home, the Government is ensuring a steady pipeline of demand and work for the housing construction industry moving forward.

According to the ALP, the ABCC, which was established by the Liberal National Party (LNP) in 2016, has become politicised and discredited since its inception.

The ALP's reasoning for abolishing the ABCC is that the organisation does little to stamp out wage theft and protect workers in the sector except pursue union officials over minor infractions. The party argues that building and construction workers should have the same rights as other workers.

The move has been met with criticism by the Master Builders Association, which argued that a construction industry watchdog is necessary to prevent unlawful actions by unions which cost the industry and community a significant amount of money.

While not opposing the move, the ACIF said it is keen to understand from the new Government what mechanisms will replace the ABCC functions of maintaining orderly and productive construction sites, making sure workers are paid what they should, and addressing sexual harassment. The organisation added it is essential to improve the culture in construction in order to attract and keep women in the industry.

Under the ALP’s Buy Australian Plan, the party is hoping to support the country’s recovery from COVID by improving local businesses’ chances to procure government contracts, no matter how big or small their businesses are.

Some of its plans are setting up a dedicated office to actively support local industry in taking advantage of government purchasing opportunities; simplify procurement processes to give small and medium businesses an equal opportunity to tender for a job; and leveling the playing field by bringing in a Fair Go Procurement Framework requiring those that gain government contracts to pay their fair share of tax.