Federal Government muffles watchdog

So we are disappointed with the Government’s final response with new legislation introduced into the Parliament on June 18.
CCF has been very active on members’ behalf. We have made a number of submissions to parliamentary inquiries and the Wilcox Review, we have directly lobbied politicians on our concerns and have participated in a range of consultations.
The Government is now proposing that the new Fair Work Building Industry Inspectorate, which will deal with building and construction, will have powers which are considerably watered down for example in relation to penalties for non compliance and new processes which deal with coercive powers.
The ABCC was set up by the previous Government as a result of the Cole Royal Commission. It had strong powers to take action including the power to compel people to attend for interrogation. Members will have become familiar with its work and the number of actions taken against union officials.
The Labor Government promised at the last election that it would abolish the ABCC after 31 January 2010 but that it would retain a strong watchdog on the beat through a new inspectorate, as part of Fair Work Australia. The Fair Work Australia Act provided the new structure for the Inspectorate proposing that it be part of the Office of the Fair Work Ombudsman. The functions and powers of the new Inspectorate were the subject of an inquiry by Murray Wilcox.
In all our submissions we argued strongly for:
•    The continuation of the BCII Act, particularly its offence and enforcement provisions;
•    A separate building and construction regulator rather than an Inspectorate under the Fair Work Ombudsman; and
•    The retention of the powers to compel people to appear, answer questions and produce documents which has been so fundamental to the ABCC’s success.
The final outcome is mixed. On the positive side, the Government has set up the Inspectorate separate to the Office of the Fair Work Ombudsman, with the director appointed by the Minister. This is a welcome outcome and in line with our submissions.
On the negative side, the offence provisions have been watered down, and the coercive powers are subject to a number of safeguards which may impede their use.
In particular, we are very concerned about the introduction of an Independent Assessor, with the power to effectively “turn off” the coercive powers for particular building projects. This was not part of the recommendations of the Wilcox Review and has the real potential to substantially weaken the regulation of building and construction worksites.
Much of the detail about this new office is unclear and subject to regulations which haven’t yet been made.
Time is particularly critical for construction with harsh penalties for late completion and extreme vulnerability at certain stages of a project. Overall we are concerned that the additional processes for taking enforcement action will impede the fast action which has been such a hallmark of the success of the ABCC.
All up it is disappointing but we will be continuing to advocate strongly for your interests.