Labor-Greens policy settings impacting the viability of construction industry in the ACT

Canberra Liberals Leader Elizabeth Lee is calling on the ACT Labor-Greens government to implement a number of measures following the collapse of at least five building companies in the ACT since September 2023.

Ms Lee said the companies entering administration had left thousands of Canberrans uncertain whether their homes will be built, impacted around 50 projects, left millions of dollars owed to creditors in the ACT, and heavily impacted local subcontractors and suppliers.

“With millions of dollars owed to creditors in the ACT our local subcontractors and suppliers have been severely impacted and the dream of homeownership for thousands of Canberrans is now in tatters,” Ms Lee said.

“This is the livelihoods of thousands of Canberrans which is now at risk. We have heard the news stories showing hard working small businesses owed tens of thousands of dollars, some hundreds of thousands of dollars as a result of these companies collapsing.

“Many of these small businesses will not be able to wear these losses and will have no choice but to close down. The effects of the collapse of these businesses will have a flow on effect to other contractors throughout the ACT.”

Ms Lee will move a motion in the Legislative Assembly today that calls on the ACT Labor-Greens government to implement comprehensive regulatory impact statements for all new legislation which involve compliance costs for business as well as refer all current legislation to the Better Regulation Taskforce for assessment.

The motion also calls on the ACT government to meet its obligations to pay contractors within the contracts stipulated timeframes and to increase funding for skills and training in the 2024-25 budget to address skill shortages.

“We know the current Labor-Greens government has deliberately put in place policy settings which have been stifling the construction industry for years,” Ms Lee said.

“The construction industry employs over 20,000 people and supports over 6,500 local businesses. Instead of supporting this important industry, Andrew Barr has instead chosen to strangle the industry with even more burdensome regulation.

“This motion calls on this government to take urgent action in the interests of business and the interests of the industry that employs tens of thousands of Canberrans and significantly contributes to the ACT economy,” Ms Lee concluded.