ASBFEO: a new era of fairness and productivity

THE passage of legislation clearing the way for the re-establishment of the Australian Building and Construction Commission (ABCC), along with the Security of Payments Working Group, marks a new era of fairness and productivity in the building sector, Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said.

“For too long, many small businesses involved in the construction industry have had their livelihoods undermined by unproductive, inappropriate and heavy handed conduct at the hands of unions, who have used their power to either twist the arm of small business owners into signing unfair industrial arrangements, or worse still force the little guys off the project altogether,” Ms Carnell said.

“The re-establishment of the ABCC will ensure there’s a tough cop on the beat; it will prevent union coercion and put a stop to bullying, ensuring mum-and-dad small businesses have greater access to major construction projects, which will ultimately bring down rapidly rising building costs here in Australia.”

Ms Carnell congratulated Senator Nick Xenophon for his work in relation to security of payments for subcontractors.

“For a small business, gaining access to a building site doesn’t mean anything unless you get paid at the end of the day.  The reality is, many small businesses in the building sector have been stung by rogue head contractors who either don’t pay their subbies on time, or worse still, the lead contractor goes bust and simply doesn’t pay their subbies at all,” Ms Carnell said.

“The work by Senator Xenophon regarding security of payments will hopefully help stamp out this practice in the future, so small businesses get paid the money that’s rightfully theirs.

“The role of the new Security of Payments Working Group is something my office will look at as part of our current Payment Times and Practices Inquiry, which is investigating the payment terms of big businesses and governments in relation to their commercial arrangements with small businesses, and the measures that can be implemented in the future to ensure the little guys are paid on time.”

www.asbfeo.gov.au

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