As with many inquiries the evidence put forward and the issues of the day challenged the initial thinking that spurred the inquiry in the first place.
This inquiry is a prime example of the power of parliamentary inquiries peopled by those with a genuine desire to discover the facts on which to base their recommendations.
This inquiry became much more significant and timelier than first thought and therefore vitally important to the governing of Australia now and well into the future.
Issues of gender equality in the workplace, sovereign security, the importance of long-term visionary planning of infrastructure and understanding the difference between lowest price and value became central themes.
The predominance of men, who occupy 88 per cent of the construction workforce, up from 83 per cent from a few years earlier, highlights the opportunity costs the industry is facing, which is a risk to its longer-term sustainability and its capacity to scale up and meet future labour demands. Despite the well-intentioned efforts to date to address this issue in some quarters, more needs to be done to address the cultural practices and norms within the construction industry that disincentivise women from entering or staying.
As in medicine, the first action is to identify the illness then prescribe the medication to effect wellbeing. There is scope for the construction industry to evolve, as other industries have done, to be one where all members of the community feel they can consider a career in it where the most qualified can be employed and work in an environment of respect and mutual support.
Sovereign security has in recent times become an important issue for our country, as tensions with great trading partner countries come into sharp focus, with real concern for the impact this has on our exports and the flow-on effects to our economy.
These concerns have escalated suddenly and violently, with fears of trade wars now being supplanted by the hostile Russian invasion of Ukraine, and the dramatic impacts that this conflict has had, even as far away as Australia.
Over decades, sovereign security has been compromised because there has been no one on the ‘watch tower’ looking out for the clear and present risks that have emerged from our expedient choices in seeking the lowest price for our procurement.
At first glance these choices are hard to fault, however on a deeper and broader analyses of all of the elements that come into play, these choices contain real and possibly devastating consequences.
Decades of choosing the lowest price, as opposed to the ‘best value’, has diminished our capacity to deliver fit-for-purpose infrastructure, which now is presenting as a danger to our sovereign security.
Similar to the risks inherent in seeking the lowest price over real value, are the risks associated with a lack of long-term planning for major infrastructure projects. This has resulted in a piecemeal, ad hoc and reactive delivery process, which thwarts the development of efficiencies in the construction industry that could be attained if there was a steady pipeline of projects available. Industry needs the confidence to gear up in line with the opportunities available, which would build up industry capacity and productivity through an increased critical mass.
Essential to achieving sector growth is the critical need for the three tiers of government to align in support of long-term collaborative planning.
The COVID recovery program, which centres around vastly increased spending on infrastructure, provides the opportunity and the need to improve the working relationships between these three tiers of government.
Measures need to be put in place that promote long-term planning and greater breadth and depth in Australia’s industry, including entities with a $1 billion plus per project tier one delivery capability, which is lacking now.
Responsible spending of our taxpayer’s money should be a prime concern and therefore a systemised mechanism must be put in place that ensures value for money at every stage of government procurement.
As mentioned previously, our committee didn’t originally foresee the full gravity of the issues that emerged as the inquiry progressed. With the growing threat of coercive trade threats and bans, particularly from China, and now the Russian invasion of Ukraine, we now have a sovereign vulnerability that in more stable times may have remained unseen.
The price of freedom is eternal vigilance.
This inquiry should stimulate a new era of vigilance.
I thank each member of our committee for their contributions. It has often been said—and it has certainly been my experience—that the best work done in this place is in our committees. I also extend my thanks to the committee secretariat, in particular Samantha Mannette, Nicolette Cilia and Lachlan Wilson, for their work on this report.
John Alexander OAM MP
Chair