Licensing scheme 'too much red tape'

But the CFMEU - which had been calling for the scheme - said the announcement was a win for workers and consumers.

Minister for Building Quality Gordon Ramsay on Thursday confirmed the ACT would introduce licences for property developers in an Australia-first scheme.

But exactly what conditions will be placed on developers remains up in the air.

Liberal Andrew Wall said the decision showed the government did not understand how the construction industry in the ACT worked.

He said licensing would fail to address building quality issues.

"What the government is using is a very blunt instrument to target a very small group of developers or individuals that operate in the industry," Mr Wall said.

He said the proposal would do nothing more than create additional red tape for developers who are already doing the right thing.

"While those who are operating outside the rules will continue to do so," he said.

The Liberals say most problems occur on projects where a builder is also operating as the developer.

They say instead of the licensing scheme, the government should conduct more site inspections during major projects and improve certification processes.

"This is clearly a wish list of the CFMEU, they are the only ones who have really trumpeted this," Mr Wall said.

CFMEU ACT secretary Jason O'Mara said if developers wanted to involve themselves in the construction process, they should face the same regulations builders and subcontractors working for them faced.

"This scheme won't impact those developers who do the right thing. But for the dodgy developers, this will impact them. This will disrupt their business practices, because frankly, they have no place in the Canberra construction industry."

"Not only is a licensing scheme going to benefit workers, it's going to benefit consumers too.

"Canberrans are sick of buying property without knowing whether the developer responsible will even exist in a year's time or leave with them a defect ridden apartment.

"Defect ridden developments have become the norm in the ACT because developers have been able to shaft their responsibility and kick the can down the road."