SUMMARY STATEMENT OF POLICY IMPERATIVESccfsa.com.au/wp-content/uploads/Policy-Doc.pdf · SUMMARY...

SUMMARYSTATEMENT OF POLICY IMPERATIVES

Required to facilitate the growth and prosperity of South Australia— harnessing the capacity, innovation and resourcefulness of the Civil Contracting Industry.

South Australia.Something has to change!

Unemployment Population Growth

Business Tax Level of private and business investment

Retail turnover

Economic Growth

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INDEX1. SUMMARYOFRECOMMENDATIONS Pages2‐4

BUSINESSTAXATION GOVERNMENTFEESANDCHARGES PUBLICINVESTMENTININFRASTRUCTURE PUBLICINFRASTRUCTURE MIGRATION WORKCOVER SMALLTOMEDIUMSIZEENTERPRISES LOCALINDUSTRYPARTCIPATION CONTRACTCONDITIONSANDTENDERS ROLEOFGOVERNMENT REGIONALDEVELOPMENT UNDERGROUNDASSETS WIDELOADS–MOVEMENTOFPLANT BANKINGSECTOR HOUSINGSECTOR PRIVATEINVESTMENT REDUCINGBUSINESSCOSTS REGULATORYENVIRONMENTANDNATIONALHARMONISATION EMPLOYMENTLAWS CONSTRUCTIONSITELAWLESSNESS AGEINGWORKFORCE SKILLEDWORKFORCE

2. CIVILCONTRACTORSFEDERATION Page53. THEECONOMYANDCIVILCONSTRUCTION Pages6‐7“ThePresident,BoardandChiefExecutiveOfficeroftheCivilContractorsFederation(SABranch)willcontinuetoshowleadership,andpresentideasandsolutionstoGovernmentthataredesigned

tocontributetothegrowthandprosperityofSouthAustralia”

GerardBeltramePresident(CCFSA)

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1. SUMMARYOFRECOMMENDATIONS

BUSINESSTAXATIONTheCCFSAcallsonthegovernmenttoembarkonataxationreformprocesswiththeobjectiveofreducingallofthecostsassociatedwiththeoperationofabusiness(largeandsmall)includingcivilcontractinginSouthAustralia.

GOVERNMENTFEESANDCHARGESTheCCFSAcallsonthegovernmenttoreducethenumberofgovernmentfeesandchargesapplicabletobusinessincludingcivilcontracting.

PUBLICINVESTMENTININFRASTRUCTURETheCCFSAcallsonthegovernmenttocontinuetoinvestintransportandotherinfrastructure,includingroadmaintenance.

PUBLICINFRASTRUCTURETheCCFSAcallsonthegovernmenttoestablishasemi‐autonomousstatutoryauthoritywiththeroleofobjectivelyassessingandmakingrecommendationstoGovernmentoninfrastructurespendthatwilldelivertheStatethebestreturnoninvestment.MIGRATIONTheCCFSAcallsonthegovernmenttoreviewcurrentmigrationandotherstrategieswithaviewtoadoptingamodelthatwilldeliveranetpopulationincreasecommensuratewiththenationalaverage.

WORKCOVERTheCCFSAcallsonthegovernmenttochangetheWorkersCompensationsysteminSouthAustraliawithaviewtominimizingcoststobusinessincludingcivilcontracting.

SMALLTOMEDIUMSIZEENTERPRISES(SME)TheCCFSAcallsonthegovernmenttoreviewcurrentgovernmentSMEprogramswithaviewtoadoptingstrategiesthatcanmoreeffectivelyrecognize,andstimulatethegrowthandprosperityofthissectorincludingcivilcontracting.

LOCALINDUSTRYPARTICIPATIONTheCCFSAcallsonthegovernmenttocontinuethestrongfocusonlocalindustryparticipationandmakingitpossibleforlocalbusinessincludingcivilcontractorstoaccessgovernmentworkonafair,reasonableandequitablebasis.

CONTRACTCONDITIONSANDTENDERSTheCCFSAcallsonthegovernmenttocontinuethestrongfocusonensuringthatgovernmentcontractsandtendersfeaturetermsandconditionsthatarerealisticandreflectthevalue,complexityandriskoftheprojectthesubjectofthetender.

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ROLEOFGOVERNMENTTheCCFSAcallsonthegovernmenttoensurethatstategovernmentagenciesandlocalcouncilsandauthoritiesdonotactivelycompeteinthemarketplacewiththeprivatesectorincludingcivilcontractorsunlessthereismarketfailureorapublicorsocialgoodthatcannotbeotherwiseaddressed.

REGIONALDEVELOPMENTTheCCFSAcallsonthegovernmenttoinitiateorfacilitatestrategiesdesignedtomorefullyrecognizeandharnessthesocialandeconomicpotentialofRegionalSouthAustralia.

UNDERGROUNDASSETS TheCCFSAcallsonthegovernmenttoreviewthecurrentarrangementsandprotocolsinrespecttotheidentificationof,andthepotentialdangerandliabilityofintersectingorunearthingundergroundassetsbycivilcontractorsandothers.

WIDELOADS–MOVEMENTOFPLANTTheCCFSAcallsonthegovernmenttoinfluencethenationalregulatortoadoptaregulatoryregimethatconsidersthecoststotheoperator,andtheinvestment,productivityandeconomicbenefitthatcanbederivedbytheefficientandeffectivetransportoflargeitemsofplantandequipment.

BANKINGSECTORTheCCFSAcallsonthegovernmenttoinfluencethebankingsectortoeasetheirlendingcriteriatofacilitatebusinessgrowthandmoreprivateinvestmentinSouthAustralia.

HOUSINGSECTORTheCCFSAcallsonthegovernmenttocontinuethefocusonthehousingsectorasanimportanteconomicdriver,includinginitiatingorfacilitatingincentivesforinvestment(publicandprivate)inthissector.

PRIVATEINVESTMENTTheCCFSAcallsonthegovernmenttoimplementstrategiesdesignedtomakeSouthAustraliaattractivetoprivateinvestmentincludingforeigninvestment.

REDUCINGBUSINESSCOSTSTheCCFSAcallsonthegovernmenttoimplementstrategiesthatwillreducethecostofbusinessinputsincludingtransport,waterandpower.

REGULATORYENVIRONMENTANDHARMONISATIONTheCCFSAcallsonthegovernmenttoinitiatestrategiesdesignedtoimprovetheefficiencyoftheregulatoryenvironment,andnotacceptproposalsdesignedtonationallyharmonizeregulationsandlawsifthereisademonstratedincreaseincoststoSouthAustralianbusinessincludingcivilcontractors.

EMPLOYMENTLAWSTheCCFSAcallsonthegovernmenttosupporttheFederalGovernment’seffortstoreinstateflexibilityinworkplacerelationslaw.

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CONSTRUCTIONSITELAWLESSNESSTheCCFSAcallsonthegovernmenttosupporttheFederalGovernment’seffortstoreinstatetheAustralianBuildingandConstructionCommission.

AGEINGWORKFORCETheCCFSAcallsonthegovernmenttoinitiatepoliciesandprogramsdesignedtoencourageolderSouthAustralianstoremainintheworkforce.

SKILLEDWORKFORCETheCCFSAcallsonthegovernmenttoencourageandsupportprivatetrainingprovidersandtocontinuethefocusongovernmentsubsidizingtrainingofcoursesandprogramswherethereisademonstratedorprojectedskilldeficiency.

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2. CIVILCONTRACTORSFEDERATION

TheCivilContractorsFederation(SouthAustralianBranch)has500companymemberswhointurnemployupto20,000SouthAustralians.MembershipisdiversefromSMEstocompanieswhicharewellknownwithhouseholdnamesandanationalandorinternationalfocus.Membersareinvolvedinavarietyofprojectsandactivities(fromsmalltoverylarge)includingtheconstructionandmaintenanceofcivilor“horizontal”infrastructuresuchasroads,bridges,sewer,wateranddrainagepipelines,dams,wharves,airfields,andcommercialandhousinglanddevelopments.Membersarealsoinvolvedinthepreparatoryworksforminingandotherresourcedevelopments.Whereyouseeconstructionactivityyouwillmostlikelyseeacivilcontractoratwork.Civilconstructionrepresentsupto27%oftheconstructionindustryinSouthAustralia.

TheobjectivesoftheFederationareto:

Promote,protectandadvancethecauseoftheCivilConstructionIndustry.

Represent,lobbyandadvocateonmattersofinterestorconcernsothatMemberscanconduct

theirbusinessaffairswithinasupportiveregulatory,taxationandbusinessenvironment.

EnhancetheimageoftheCivilConstructionIndustryintheeyesofgovernment,communityand

media.

FacilitatefavourabletraderelationsbetweenandforthebenefitofMembers.

ProvideopportunityforMemberstocometogethercollegiately,toshareinformationand

network.

MaintaininfluentialcontactswithintheGovernmentofthedayandtheOppositionparties.

Facilitatetheprovisionoflegal,technicalandotherinformationandadvicetoMembers.

DelivertrainingandotherservicesofbenefittoMembers.

TheCivilContractorsFederation(SABranch)operatesthelargestRegisteredTrainingOrganizationoutsideofTAFEinSouthAustralia.CivilTrainisastrongbrandandishighlyregardedasatrainingprovider.CivilTrainhasapre‐eminentplaceinsupportofourMembersandothercompaniesinourindustry.CivilTrainisaStateGovernmentapproved‘SkillsforAll’trainingproviderandalsoofferstraininginmanyareasbeyondthecivilsectorinresponsetomarketdemand.CivilTraindeliverstraininginregionalcentresandhasasubstantialpresenceinAliceSpringsandincludesmanyremoteIndigenouscommunitieswithinitsclientbase.

TheCivilContractorsFederationnationallyboastsamembershipof2000companieswhointurnemployupto350,000Australians.TheFederationiscomprisedofsemi‐autonomousstatebranchesreflectingthedifferentstategovernments,regulatoryenvironments,economiesanddemographics.

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3. THEECONOMYANDCIVILCONSTRUCTION

SouthAustralia’sprosperityisdependentuponfunctional,efficientandcosteffectivecivilinfrastructure.Healthy,well‐functioningandproductivecountriesdependoninfrastructurethatcivilcontractorsconstructandmaintain.Civilcontractorsplayaprimeroleinworkingwithbothpublicsectorandprivatesectorclientsininfrastructuredelivery.ThisisthebusinessofcivilconstructionwhichhashistoricallyplayedapivotalroleinthegrowthandprosperityofSouthAustralia.

Theindustryisexperiencingatwentyyearlow,characterizedbydiminishingprivateandpublicinvestmentinprojectsthathavehistoricallybeenthemainstayofoursector.Theabsenceofapipelineofpubliclyfundedworksbeyondthecompletionin2014offourlargeinfrastructureprojectsintheCBDandmetropolitanAdelaideisparticularlytroublesome.

Theneteffectofthis,whichiscompoundedbyahighbusinesstaxregime,unnecessaryregulationandslowapprovalprocesses,hasguttedthesectorresultingincivilcontractorbusinessclosuresandanexodusofcivilcontractorstothemoreprosperousstates.SouthAustraliaisthepoorerforthisbecauseitislosingcivilconstructioncapacityonadailybasis.GiventhecriticalrolethecivilconstructionsectorplaysinthegrowthandprosperityofSouthAustralia,thisoughttobeamatterofseriousconcerntogovernmentatalllevels.

Infrastructureisasmartinvestmentforgovernmentandthecommunity:itisanassetthatincreasestheproductivityoftheeconomy,bothnowandintothefuture–makingAustraliamorecompetitiveinternationally.Itprovidesdemandforconstructionandassociatedmaterials,keepingcivilconstructionandassociatedbusinesseshealthyandprovidingtheiremployeeswithincomethatisdistributedthroughouttheeconomyastheyspend.Governmenttaxationrevenuesexpandthroughcompanytax,payrolltax,incometaxandGST.

Theimpactsfromanylackofinvestmentininfrastructurearetangibleandeconomic.Theconstruction‐costinflationassociatedwithdeferredinvestmentscanbegreaterthantheborrowingandfinancingcostsinvolvedinearlierfunding.Weshouldbemindfulthatthelossesineconomicandsocietalbenefitsarelikelytobegreaterstill.

58%ofcivilcontractorsexperiencedadecreaseinworkforceoverthepast12months

69%ofcivilcontractorsexpecttoseeadecreaseinworkin2013

73%ofcivilcontractorsarelookingforalternateincomesources,includinginterstateandoverseaswork,and/ornewmarkets.

83%ofcivilcontractorsexpectmorecompetitivepricingin2013

ThemajorissueformanycontractorsintheState,large,mediumandsmall,isthattheyarecurrentlyinapositionofgreatuncertainty.

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ThisputsarealandcurrentstrainonnumerousSouthAustralianCompanies’businessplanstosustainminimumresourcelevelsintheStateandhasseriousconsequencesforanyfutureinvestmentdecisions.Inaddition,shouldtheseresourcesmoveinterstateoroverseasthenthatwouldhaveconsequencesfortheuptakeofanyfuturepeaksofinfrastructureprojectinvestments.

GiventherelativelysmallsizeoftheSouthAustralianeconomy,public(StateandLocalGovernment)investmentintransportandotherinfrastructurerepresentsalargerproportionoftheavailableworkthanisthecaseinmostoftheotherAustralianstates.Withthediminishingavailabilityofprivateworksthisfactorbecomesmorecritical.

Itisnotedthatthetimeframehistoricallytoachievestrategicinfrastructureplansareseveralyearsfromfirstestablishingtheideaandbeinginapositiontobeabletosuccessfullypublishtheresultantoutputs.

Moregenerally,theunemploymentrateinSouthAustraliainAugust2013was6.8%(nationally5.7%)secondonlytoTasmania.JobvacanciesintheStateweredown42.4%inMay2013comparedwiththecorrespondingquarterof2012,theworstinthenation.ThetotalnumberofdwellingapprovalshasriseninthelasttwelvemonthsbutisstilllessthanJuly2007.Inaddition,theratingsagencyFitchannouncedonthe27September2013thatithaddowngradeditscreditratingforSouthAustraliafromAA+toAAduetothegovernmentdebtlevelsanddeterioratingbudgetposition.Also,sayingthatitdoesnotseeasignificantrecoveryforatleastthenextthreeyears.

“The highly respected CCF logo is proudly displayed on member plant and equipment and their premises as a badge of integrity, honesty and professionalism.”