ACT government red tape bars builders from taking on public housing work: Master Builders ACT

The Secure Local Jobs Code, required to be held by construction, security, traffic and cleaning companies tendering for ACT government projects, has been in effect since January 2019, when it met with backlash for its ties to unions.

"We've certainly heard from our residential builders, that they're quite concerned about how hard it is to find residential trades who hold a Secure Local Jobs Codes to get to work on ACT housing jobs," Master Builders ACT chief executive Michael Hopkins said.

"And most report that they don't want to subject the companies to the time, cost and red tape of applying for a certificate when there's so much private work around at the moment."

The ACT government's Growing and Renewing program promises the delivery of 1400 new public houses by 2025, 1000 of which will replace existing stock, and an additional 400 to address growing demand.

The government has so far acquired or built under a quarter of that number (312), while it has purchased a further 101 land sites.

In the next year, work will continue on 700 dwellings, with 193 to be completed.

A spokesperson for the ACT government said a shortage of construction companies tendering for projects was not causing delays in the program.

Currently there are 16 companies contracted to complete ACT government residential projects.

When asked about slow progress in its housing program, a spokesperson said the ACT government was experiencing delays due to the coronavirus pandemic.

"The ACT government is not immune to the national and international pressures on the construction industry due to COVID-19 pandemic (both resources and materials) and Housing ACT is continually monitoring the program's performance."

The Secure Local Jobs Code requires companies be audited at least every 18 months to ensure they have not underpaid staff, and also means employers need to give new employees union membership forms to be code compliant.

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Companies must also hand over addresses, working hours and contact details associated with the work to a Secure Local Jobs registrar, so unions can exercise their right of entry.

Mr Hopkins said the code was "in part very worthwhile" in terms of ensuring that companies are complying with workplace laws and paying staff appropriately, but that the way in which it invited the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) into companies was problematic.

"The biggest objection to the Secure Local Jobs Code certificate is the industrial relations elements of the code, the fact that it invites the construction union into your company and onto your building site."

CFMEU Branch Secretary Zach Smith said the right to join the construction union was vital to safe worksites.

"The Secure Local Jobs Code has been designed to protect the safety and livelihoods of workers in the industry, as well as ensure taxpayer money only goes to companies that meet basic ethical standards," Mr Smith said in a statement.

Mark Gillett, the owner of P&G builders, agreed red tape had kept him from pursuing government work.

"We never even got that far down through the process, it was literally that we acknowledged that there was another step there, and there was a hurdle that we were sort of going to have to jump over," he said.

"Now with how much work we've got, we're barely being able to keep up with the demand that we're faced with at the minute, so looking at going through a process that would require us to jump through hurdles - it's just not really worth it for us at the minute."

An ACT government spokesperson said the government is committed to ensuring safe and secure employment across the region.

"This includes a commitment to ensuring that companies engaged in territory funded works meet the requirements set out in the Secure Local Jobs Code."

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