Master Builders Australia - Building Industry Watchdog Delivers Productivity

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27th October 2010, 03:01am - Views: 828

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Under Embargo until midnight 26 October 2010

Media Release 

27 October 2010

Building Industry Watchdog Delivers Productivity

Statement by Wilhelm Harnisch, Chief Executive Officer

Master Builders Australia

today released a report that responds to the Prime Minister’s strong

commitment of lifting Australia’s productivity by showing the productivity contribution of the Australian

Building and Construction Commission (ABCC).

Mr Wilhelm Harnisch, CEO of Master Builders Australia said, “Master Builders wholeheartedly backs the

recent comments of

the Prime Minister emphasising the critical need to lift Australia’s productivity. 

Labour productivity in the building and construction industry must be an essential part of that effort and at

the core must be the retention of the ABCC powers and the current related laws..  

“Master Builders therefore calls on the Gillard Government to retain the powers of the ABCC.

“Productivity reforms in the building and construction industry through the ABCC and related industrial

relations have added 9.4% to labour productivity in the construction industry. 

“The community’s

welfare gain

is $59 billion over ten years or $5.9

billion per annum better off.  The

effects of the ABCC have also contributed to a permanent reduction in inflation of around 0.7 per cent

and have permanently contributed

0.6 per cent to gross domestic product. Consumers and the

community have largely benefited from the 9.4% reduction in labour costs.

“The industry’s

labour productivity since 2002 has out-performed predictions based on historical

performance relative to other industries by 7.7 per cent.  Multi-factor productivity in the industry was no

higher in 2000-2001 than 20 years earlier but then accelerated by 14.8 per cent in the six years to 2007-

2008.  These productivity statistics are unambiguous.

“The KPMG Econtech report (the fourth) entitled Economic Analysis of the Building and Construction

Industry Productivity 2010, shows that the entire community is better off through economic welfare gain

and  the significant lift in productivity and industrial harmony since the ABCC was established in late 2005

and commenced by its predecessor body the Building Industry Task Force in 2002.

“Master Builders has been a strong advocate for reform that lifts Australia’s productivity and calls on the

Government not to dismiss the productivity findings of the KPMG Econtech report in order to placate the

building unions.”

Mr Harnisch said, “A

strong and effective cop on the beat must be kept

so that the building and

construction industry’s productivity continues to contribute to Australia’s social and economic well being.”


Wilhelm Harnisch, Chief Executive Officer   Mobile:  0402 039 039

Richard Calver, Industrial Relations & Legal Counsel Mobile:  0422 866 766

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