SUMMARY STATEMENT OF POLICY IMPERATIVESccfsa.com.au/wp-content/uploads/Policy-Doc.pdf · SUMMARY...
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SUMMARY STATEMENT OF POLICY IMPERATIVES Required to facilitate the growth and prosperity of South Australia— harnessing the capacity, innovation and resourcefulness of the Civil Contracting Industry.
Transcript of 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.”
