Qld Property Sector Welcomes New Productivity Commission

The first order of business for Queensland’s newly reinstated productivity commission—for which the legislation has now been passed—will be a review of the state’s construction sector.

And for the beleaguered property development industry it can’t come soon enough.

On Wednesday (March 12), the Crisafulli Liberal National Party government passed the Queensland Productivity Commission 2024 Bill—hailing it as “a key step to restore productivity, improve living standards and drive economic growth”.

It follows moves in November to suspend the use of Best Practice Industry Conditions (BPICs) on government-funded construction projects over $100 million.

In February, the government also announced a major overhaul of Queensland’s building regulations, including an immediate pause on plans to extend the industry’s trust account system to private projects below $10 million.

Treasurer David Janetzki said an independent productivity commission was “crucial to secure the state’s economic future” and herald it “part of a fresh start for Queensland”.

“We need to cut unnecessary red tape…the productivity commission model has been proven to have a real impact on government-led economic improvement both at a national level and in other states,” he said.

Its impending comprehensive review of Queensland’s construction sector comes in the wake of revelations union-approved BPICs were adding up to 25 per cent to the cost of major projects and likely to create a net economic cost of up to $17.1 billion.

Property Council Queensland executive director Jess Caire said declining productivity in the construction sector had contributed to the lack of new supply coming to market in an efficient manner.

▲ Property Council Queensland executive director Jess Caire.

“Stagnant productivity in our construction sector is one of the key factors contributing to the lack of supply across all property types, most notably in the housing sector,” she said.

“Queensland is on the precipice of an exciting period of growth, requiring a significant amount of housing, businesses and infrastructure, and it will be imperative to lean into every opportunity to bolster productivity, maintain safe worksites and embrace ongoing innovation.”

Caire said the industry welcomed the passing of the legislation to re-establish the Queensland Productivity Commission and the much-needed review into the state’s construction sector.

“Recently the National Productivity Commission released a report aimed at addressing productivity issues in Australia’s housing sector, and the new QPC will be the vehicle where these issues can be addressed here in Queensland,” she said.

“The longer it takes to build a house the more it ends up costing and the wider our housing deficit grows.

“If we want to build new housing supply for our rapidly growing population then productivity must improve and it must improve rapidly, there is no time to waste.”