The Queensland Government has released the Terms of Reference for the landmark Inquiry into improving productivity in the construction sector, delivering on a key election commitment.
The government has also announced the appointment of Angela Moody as Productivity Commissioner.
The Inquiry is the first order of business for the Queensland Productivity Commission, after the Commissioner was formally appointed last week.
The Terms of Reference require the Commission to investigate and report on conditions in the residential and non-residential construction sectors and examine policy and regulatory factors affecting productivity of this important industry.
With the Terms of Reference for the initial inquiry handed down today, the Commission is required to deliver a report to the Government within six months.
Treasurer David Janetzki said Queensland could not afford productivity on building sites to remain in decline.
“The Commission’s first Inquiry will review the factors driving productivity in the Queensland construction sector and make recommendations for reform to improve productivity without compromising quality and safety outcomes,” Treasurer Janetzki said.
“This important work by the Productivity Commission will drive up productivity and drive down cost pressures.”
Minister for Housing and Public Works Sam O’Connor said the Inquiry was a critical step toward fixing what’s broken in Queensland’s building and construction sector.
“We’ve heard loud and clear from builders across Queensland red tape and outdated regulations are stalling housing projects and driving up costs,” Mr O’Connor said.
“By launching this Inquiry, we’re getting on with the job of making it easier to build in Queensland because the current system isn’t working for builders and it’s certainly not working for the tens of thousands of Queenslanders waiting for a place to call home.”
Property Council Queensland Executive Director Jess Caire said the Property Council had long advocated for the reinstatement of the QPC in response to Queensland’s plummeting productivity.
“Queensland is growing exponentially, this means we need more homes, schools, hospitals, job creating industrial developments and the delivery of critical infrastructure to support that growth,” Ms Caire said.
“Delivering this has to be done efficiently, requiring a significant boost in productivity across the State.
“The industry welcomes the appointment of Ms Moody as Commissioner and the start of the inquiry into the Queensland construction sector. This is a great start in our combined efforts to bolster productivity, embrace innovation and reduce red tape, while maintaining the highest standards of safety and inclusion on worksites.
“This inquiry provides a welcome opportunity for industry to work collaboratively to make generational change, we know we need to attract more trades, and this could be a catalyst in boosting participation in the construction sector.”
Ms Caire said it was imperative to move swiftly to improve productivity in order to reduce the cost of housing for Queenslanders.
“Queensland is already facing a significant housing deficit, and the longer it takes to build a house the more it costs and the wider this deficit grows.
“The Property Council and its members look forward to contributing to the inquiry and working with Commissioner Moody to arrest Queensland’s falling productivity, which has contributed to a lack of supply across all property types.”