Govt unveils plans for building watchdog

Unions have been reduced to virtual bystanders as the Rudd government announced
plans to retain coercive powers to curb illegal behaviour in the building and
construction industry.
But it appears the new powers will be heavily qualified, with building projects with
a record of good behaviour able to apply to opt out of the coercive powers regime.
The move has alarmed one employer group, which has accused the government of
capitulating to union pressure.
But the ACTU has also reacted angrily, putting the government on notice that it will
continue its campaign against the laws.
Prime Minister Kevin Rudd and Workplace Relations Minister Julia Gillard said a new
Building Industry Inspectorate will be housed within the new watchdog Fair Work
Australia, replacing the Australian Building and Construction Commission in
February.
According to details released by Ms Gillard on Tuesday, the legislation will provide
for the coercive powers to remain for five years under a sunset clause, after which
it will be subject to a review.
The use of the coercive powers will be subject to approval by the Administrative
Appeals Tribunal and anyone required to attend an interview will have their lost
wages, legal, travel and accommodation costs met.
Ms Gillard said hearings would be videotaped and handed to the Ombudsman for oversight.
Because unlawful behaviour in the building industry is most prevalent in Victoria
and Western Australia, Ms Gillard said the coercive powers could be "switched off"
on application to an independent assessor for sites with a history of good
behaviour.
"Good behaviour can be rewarded by the coercive powers being switched off, but for
bad behaviour, the coercive powers will be there," Ms Gillard said in Canberra.
But Australian Industry Group (Ai Group) chief executive Heather Ridout said the
opt-out provision was a concern to industry.
"A central element of the reforms in the building and construction industry has been
the power of the construction industry regulatory body to require parties to answer
questions," Ms Ridout said.
Unions have campaigned for the abolition of the commission - set up by the Howard
government after a royal commission found widespread unlawful behaviour in the
industry - since well before Labor's 2007 election victory.
Mr Rudd said there would be "loud complaints" from unions and also some from
industry, indicating the government had got the balance right.
"I'd like to underline in absolutely clear-cut terms that this government will not
tolerate violence, threats of violence, or intimidation in any part of the
industry," Mr Rudd said.
ACTU secretary Jeff Lawrence, in Canberra to lobby Labor MPs, said unions would
continue to campaign against the laws, taking their complaints to the ALP national
conference in Sydney in late July.
"It is unacceptable for the Labor government to retain discriminatory laws including
the use of over-the-top coercive powers against one group of workers," Mr Lawrence
said in Canberra.
Labor's federal caucus endorsed the legislation after what Mr Rudd called "an
extensive and animated discussion" over two-and-a-half hours.
Labor sources later described the debate as passionate and constructive, with two
former unionists, senators Kate Lundy and Doug Cameron, failing in an attempt to
reduce the sunset clause to three years and to introduce an "opt in" clause for the
coercive powers.
The inspectorate's new powers are based on recommendations from an inquiry
commissioned by Ms Gillard last year and conducted by former Federal Court judge
Murray Wilcox, QC.
The bill will be introduced on Wednesday but is unlikely to pass before parliament
rises for six weeks on June 25 because the Australian Greens plan to refer it to a
Senate committee for an inquiry.