Construction Industry

The Hon. D.J. SPEIRS (Black—Leader of the Opposition) (15:52): My question is again to the Premier. Is the Premier aware about concerns from industry groups of the possible impacts on the cost of government-funded infrastructure projects in South Australia by the recent endorsement of a new pattern pay deal with the CFMEU members in Victoria? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. D.J. SPEIRS: CFMEU members have yesterday endorsed a new pattern pay deal, which includes a 21 per cent wage increase over four years and the allowance for union officials to enter sites without a legal permit.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (15:53): It is important to note that, when the government goes out for procurement on all these projects, we set what we think is an appropriate budget for all infrastructure programs. In effect, what consortiums are doing is bidding against the Department for Infrastructure and Transport's assessment of what this project would cost.

Now, whether it's the Majors Road intersection or the north-south corridor Torrens to Darlington tunnels, whether it's a series of intersections or whether it's the Mount Barker Interchange, the Verdun interchange, the roundabout in Mount Barker, the new hospital building in Mount Barker or the $700 million worth of infrastructure spending in the Adelaide Hills, all these things go out to tender. Within that tender process, consortiums bid and against what it is they think they can deliver a project for.

Traditionally in this state, traditionally in Australia, the Australian Workers Union have coverage of things like tunnels, and they would have their own enterprise agreements. If consortia are bidding, and they have agreements—

The Hon. V.A. Tarzia: Here is the door opening. Here it is, right here.

The Hon. A. KOUTSANTONIS: I don't know who you are speaking to, but it's worrying me. These consortia have to bid within a range. If one consortium has an enterprise agreement with one union that is more expensive than another, it obviously does their bid some harm. The idea that all construction jobs—every single one in this state, in the entire civil industry—are at the beck and call of one enterprise agreement with one union is simply not true. It is simply not accurate.

Do I share the concerns the Premier has? Yes, I do. Is John Setka and the CFMEU my type of union leadership? Absolutely not. Every time—and I say this publicly—

Mr Whetstone: You took his money.

The Hon. A. KOUTSANTONIS: I do not understand why the member for Chaffey cannot get a question to ask. He just sits there and interjects constantly rather than asking a question. If you have something to say, ask it; if not, sit quietly.

Members interjecting:

The Hon. A. KOUTSANTONIS: Nevertheless, if there are interstate bidders who are wanting to bring a Victorian industrial relations regime to South Australia, we have a very good industrial relations regime here in South Australia. There is industrial harmony with a lot of the unions here in South Australia. I would encourage interstate bidders to look at the South Australian example as the model, not the exception.