Building sector regulation 'won't bring labour shortage'

Clayton Cosgrove

Speculation that Government regulation of the building industry could worsen a labour shortage has been rejected by Building Issues Minister Clayton Cosgrove.

Regulation would be staged and would not cause an immediate shock to the sector or big price rises, he said.

Licensing would not become mandatory until 2011, so the workforce had ample time to adjust to the changes.

Business Roundtable executive director Roger Kerr said regulation was huge political overkill and part of a worrying economic direction by the Government.

But Cosgrove said the Master Builders Federation and other industry bodies backed regulation.

"We're phasing the system in gradually and there won't be a critical labour shortage," he said.

The licensing system would not lead to a wholesale tipping out of skilled tradespeople because only a small portion of the workforce would need to be licensed.

"Of the 160,000 people now working in the industry, we predict around 28,000 will need to become licensed.

Most will fly through the system. "Not all people are going to be forced to undertake training or education to get a licence. It might just be they need to attend a seminar or provide references of people they've worked for.

"Initial assessments of licensed building practitioners will take into account qualifications, background and experience," he said.

The licensing system would also be tested before it became mandatory to ensure it worked effectively.

"It would be very easy for us to say 'you're trade-qualified, through the gate. But you're not, so back to school'," Cosgrove said.

"We're not saying that. We're saying if you can demonstrate you are a skilled person, you know what you're doing and you have a good track record, then you're okay.

"Those who are sharks or cowboys can get up to speed with training and qualifications or get kicked out."

But some builders are worried. Murray Smith holds a Queensland builder's licence and is a carpentry tutor for NorthTec in Kaitaia. He predicted the new system would fail.

"It's being driven by the Master Builders Federation and Certified Builders purely for their own ends. Many Queensland licence-holders have slipped through the net and have no practical building experience.

"Until there is a proper training system put in place well before the implementation of a new licence system it should be postponed. Only then will there be an adequate number of tradesmen to carry out the work, at prices the public can afford and be expected to pay."

The system costs about A$40 million ($40 million) annually to administer in Queensland for a population similar to that in New Zealand.

Another builder said the Government and councils should set higher building standards and inspection processes rather than regulating the sector.