POLICY AND ADVOCACY A federal budget, followed by a federal election and various state budgets, has ensured our team has been focused on reviewing policies that impact our members’ and stakeholders’ businesses. Federal election policy proposals submitted on your behalf by NECA, to all mainstream political parties and key independents, comprise constructive and positive recommendations to grow the economy and the electrotechnology industry, while ensuring safeguards are in place for a fair, equitable business environment. During the election period, we focused specifically on: ½
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These engagements have included: ½
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A site visit and ‘meet and greet’ with apprentices and staff at NECA’s Chullora campus by the Hon Alister Henskens MLA (NSW), Minister for Skills and Training and Minister for Science, Innovation and Technology. Meetings with federal ministers, including the: ½
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initiatives to address worker and skills shortages; supporting small businesses and identifying opportunities for local job creation; ensuring contract terms are fair and reasonable for contractors and subcontractors; reforming Security of Payments legislation (nationally and at state level) to create a payments system that safeguards the interests of contractors and subcontractors; opportunities to recruit more apprentices, through mature-age incentives, female participation, and ongoing support for current apprentices; and increasing completion rates and retention of apprentices and electricians in our sector.
Engagement with ministers Since my last report in NECA News, our team has engaged directly in ministerial meetings at all levels of government. Internally, it has also engaged with NECA’s Executive Directors in each state and with the senior management of major member businesses, to ensure not only that our representation efforts are truly national, but that local input is embedded in all negotiations with government. We have also advocated for individual members on specific issues about which we have been approached, raising their concerns directly with government (at both ministerial and departmental levels) to resolve these matters successfully.
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Hon Angus Taylor MP, former Minister for Industry, Energy and Emissions Reduction, with regard to renewable energy opportunities, skills shortages for the growing energy sector; Hon Stuart Robert MP, former Minister for Employment, Workforce, Skills, Small and Family Business on training, with regard to increased campus capacities and small business opportunities; and Hon Alex Hawke MP, former Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs, with regard to a proposed Trades Passport and addressing the skills shortages.
Security of payments Collapses of large head contractor firms disproportionately impact our industry. As a finishing trade, many NECA members can suffer large financial losses and experience extreme financial and mental stress as a result of these collapses. NECA’s primary focus is the well-being of our members, their families and employees. One of our immediate priorities is to work closely with ministers and bureaucrats across Australia, nationally and at state level, to negotiate and deliver an effective Security of Payments framework through legislative reform. While these efforts will continue over the medium term, interest among state and federal governments (and their ministers) is high, and NECA’s proposals are being taken on board and actively considered as they work through their legislative agendas.
For example, NECA is advocating strongly for features such as a “Cascading Trust/ Deemed Trust” scheme – wherein a trust, binding on all entities down the contractual chain – to be embedded in any reformed Security of Payments framework, as this will provide subcontractors with the greatest degree of protection. When one party receives monies owed to contractors/subcontractors below it in the contractual chain, individual directors or partners become personally liable for any misuse of those funds, with penalties up to and including jail time. This system works well in overseas jurisdictions, with minimal administration required, and it is very straightforward to operate. It will be a hard fight as many other associations are actively campaigning against this, and we will soon be reaching out to members to assist in our efforts to ensure equity in the construction sector. NECA has also advocated for improvements to existing legislation if this isn’t practical. Our second preference is, in effect, an adaptation of the Building and Construction Industry (Security of Payment) Act 2021 (WA), which passed both houses of the Western Australian Parliament last year. When this Act comes into effect, it will provide greater security in the form of retention money trust accounts. The legislation requires retention money to be held in a dedicated trust account with a recognised financial institution for the benefit of both parties. Failure to comply with its provisions regarding retention trusts is an offence, with penalties of $50,000 for individuals or $250,000 for corporations. In addition to NECA’s concerns about unfair contracts and the imbalance of power on large projects, we now find ourselves navigating our way out of the impact of COVID-19, with rising material costs, labour shortages and disruptions, and supply chain delays, which serve to only exacerbate the risks associated with construction projects, along with a higher risk of insolvencies and consequent underpayments to those further down the contractual chain. The changes we are recommending, such as reasonable rise and fall pricing clauses, aim to address these concerns. NECA will continue to advocate on behalf of our members for meaningful and effective change.
June 2022
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