In an effort to boost productivity in the construction sector, a state commission will advise on change
The Queensland government has announced the implementation of a new Productivity Commission that will research solutions to a variety of economic challenges across the state, and provide the Government with advice and recommendations for policy issues.
The Productivity Commission will first undertake a comprehensive review of Queensland’s construction sector after it was revealed that Best Practice Industry Conditions were adding up to 30 per cent to the cost of major projects.
Treasury modelling shows that productivity losses made up the majority of cost increases to major projects.
The Commission will also deliver Queensland’s first Intergenerational Equity Report, outlining the key issues Queenslanders face across generational lines, and the long-term policy solutions needed.
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“Productivity underwrites prosperity and we must return it to Queensland to drive-down costs across industry and around the kitchen table,” Qld treasurer David Janetzki says.
“If we don’t reverse the productivity purge in Queensland, it is businesses and families who will pay the price.
“The Productivity Commission will identify opportunity and bolster our state’s economy.
“We cannot afford the cost of building sites remaining at a standstill, which is why the first order of business will be a review of the building industry.
“Labor’s CFMEU Tax will be put under the microscope to restore productivity to worksites.
“The government has already announced a pause on BPIC while this review is completed, which is why I will be tasking the Productivity Commission with delivering a report in mid-2025.”