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{{propApi.successMessage}} {{region}} Change locationUrgent governance reform needed for TasBuild
Urgent governance reform needed for TasBuild
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HIA is calling for the scheme to be reconstituted as a statutory authority, as seen in other jurisdictions, with fixed-term ministerial or Governor-in-Council appointments.
The scheme collects up to 2.5 per cent of ordinary pay from construction employers under the Construction Industry (Long Service) Act 1997. It is administered by TasBuild Limited, a private company appointed by the Government in 1997.
Other jurisdictions administer their schemes through statutory bodies. In Queensland, the board is appointed by the Governor-in-Council with the accounts certified through the Queensland Audit Office, the scheme is subject to right to information laws, and its annual report is tabled in the Legislative Assembly.
HIA Executive Director Tasmania Benjamin Price said the structure put a compulsory industry levy outside essentially every scrutiny mechanism Parliament has.
"Every builder in this state pays this levy and not one of them can choose not to.
“When money is compulsory, the accountability must be public and robust, and right now the Public Accounts Committee cannot even look at it.
"This is a 1997 structure running in 2026. Make it a statutory authority, with ministerial or Governor-in-Council appointments, fixed terms, appropriate industry representation, proper oversight by Government and accountability to Parliament."
Mr Price said the absence of an independent appointment process had produced board tenures previously unheard of in public bodies, with one director serving from the scheme's establishment in 1998 until this year, a period of 27 years.
"27 years on a government mandated board, with no fixed term, no independent appointment process and no accountability to Parliament. There is no public body in this state where that would be acceptable, and no reason it should be acceptable here."
Mr Price said the call followed the approval of a commercial office building at 240-244 Murray Street, Hobart, reported to be a $10 million development involving TasBuild.
"Members are concerned that the monopoly long service leave provider is building new office accommodation in the CBD, at significant cost, when industry contributions are collected for the primary purpose of meeting long service leave liabilities and protecting employee entitlements.”
"Let me be very clear, I'm making no allegation that any money has been misused. I'm saying the governance arrangements must be contemporary to ensure that this significant investment, of nearly a quarter of a billion dollars of industry's money, is protected now and into the future.
"The issue is not whether portable long service leave should exist. The issue is whether a compulsory levy paid by every construction employer is managed under governance arrangements that meet contemporary standards of transparency, accountability and stewardship.
"It's long past time for the Tasmanian Government to progress reforms to TasBuild, to provide a fit-for-purpose and contemporary framework for this important asset for industry."
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