HIA Executive Director ACT & Southern NSW, Geordan Murray, said the findings reinforced the need for government procurement to be transparent, competitive and free from third party influence.

“No union, employer association, industry body or other external organisation should have privileged access to information or decision-makers in relation to a live government tender,” Mr Murray said.

“The UnionsACT MoU is inconsistent with this principle and should be immediately rescinded.”

HIA has long raised concerns about the regulatory and administrative burden associated with the Secure Local Jobs Code, and its potential to discourage businesses from competing fairly for ACT Government work.

“There is an obvious community expectation that businesses awarded government tenders maintain compliance with workplace laws. This is achieved through comprehensive legislation that is already in existence and applies to all businesses operating in the ACT, without the need for the Secure Local Jobs Code to overreach.

“We now have the Secure Local Jobs Code operating in tandem with the UnionsACT MoU, and on top of that the Ethical Treatment of Workers Evaluation Direction. The cumulative compliance burden imposed on businesses simply to be eligible to tender for government work is significant.

“For many businesses, particularly smaller contractors, the cost and complexity of navigating these requirements means they simply choose not to engage in ACT Government procurement. That should concern a government seeking competitive tenders and value for taxpayers.

“Every additional layer of regulation has a cost. In the construction industry, those costs ultimately flow through projects and add to the already high cost of building in the ACT.

“At a time when Canberra desperately needs more homes, government should be looking for opportunities to reduce unnecessary regulatory costs and barriers to participation. Higher construction costs make projects less viable, and when projects don’t stack up, fewer homes get built.

“The Government should commission an independent review of its procurement processes, applying the same principles being advanced through the Productivity Commission’s regulatory reform work.

“That means asking whether these arrangements are delivering measurable benefits, whether those benefits justify the compliance costs, whether they duplicate existing workplace regulation, and whether they create unnecessary barriers to competition for government work.

“The findings from Operation Kingfisher provide an opportunity to restore confidence in procurement: abolish the UnionsACT MoU, ensure there are clear boundaries around external involvement in live tenders, and properly test whether the Secure Local Jobs Code and associated requirements are delivering what they were established to achieve,” Mr Murray concluded.

For more information please contact: