summary statement of policy imperativesccfsa.com.au/wp-content/uploads/policy-doc.pdf · summary...
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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.
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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.
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“The highly respected CCF logo is proudly displayed on member plant and equipment and their premises as a badge of integrity, honesty and professionalism.”