South Australian taxpayers face cost blowouts on major defence and transport infrastrucure projects from Labor’s plan to abolish the construction industry watchdog the Australian Building and Construction Commission (ABCC).
“A new report by EY modelled the cost impact of Labor’s plan to abolish the ABCC on major projects in South Australia and the results should send a shiver down the spine of every South Australian taxpayer,” Denita Wawn, CEO of Master Builders Australia said.
“Labor’s irresponsible policy is going to drive up costs just when South Australian households are feeling the pinch from inflation and small builders and tradies are facing a cost and cashflow crunch,” she said.
“The EY modelling commissioned by Master Builders Australia found that taxpayers will face major cost blow outs of abolishing the construction industry watchdog,” she said.
“EY’s modelling shows that abolishing the ABCC could result in a hit of $47.5 billion to the national economy and could reach as high as $80 billion,” Denita Wawn said.
Major projects modelled by EY:
Project | Estimated Cost | Cost if the ABCC was abolished |
Cultana Solar Farm | $350m | $380m |
AIR 7000 Remotely Piloted Aircraft | $302m | $329m |
Ovingham level crossing upgrade | $231m | $252m |
AIR555 Airborne Intelligence | $214m | $233m |
F
