John Alexander (Bennelong, Liberal Party) | Hansard source

On behalf of the Standing Committee on Infrastructure, Transport and Cities, I present the committee's report entitled Government procurement: A sovereign security imperative, together with the minutes of proceedings.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—This inquiry into procurement and government funded infrastructure became more significant and timelier than first thought and therefore vitally important to the governing of Australia now and well into the future. This inquiry is a prime example of the power of parliamentary inquiries, peopled by those with a genuine desire to discover the facts on which to base their recommendations. As with many inquiries, the evidence put forward and the issues of the day challenged the initial thinking that spurred the inquiry in the first place.

The issue of gender equality in the workplace, sovereign security, the importance of long-term visionary planning of infrastructure and understanding the difference between the lowest price and best value became central themes. The predominance of men, who occupy 88 per cent of the construction workforce, up from 83 per cent just a few years earlier, highlights the opportunity cost the industry is facing, which is a risk to its longer-term sustainability and its capacity to scale up and meet future labour demands. Despite the well-intentioned efforts to date to address this issue in some quarters, more needs to be done to address the cultural practices and norms within the construction industry that disincentivise women from entering and staying. As with medicine, the first action is to identify the illness and then prescribe the treatment to affect wellbeing. There is scope for the construction industry to evolve, as other industries have done, to be one where all members of the community feel they can consider a career, an industry where the most qualified can be employed and work in an environment of respect and mutual support.

Sovereign security has in recent times become an important issue for our country, as tensions with great trading partner countries come into sharp focus, with real concerns for the impact this has on our exports and the flow-on effects to our economy. Over many decades, sovereign security has been compromised because there has been no-one on the watchtower looking out for the clear and present risks that have emerged from our expedient choices in seeking the lowest price as opposed to the best value in our procurement processes.

The lack of long-term planning for major infrastructure projects has resulted in a piecemeal, ad hoc and reactive delivery process which thwarts the development of efficiencies in the construction industry that could be attained if there were a steady pipeline of projects available. Industry needs the confidence to gear up in line with the opportunities available, which would build up industry capacity and productivity through an increased critical mass. Essential to achieving sector growth is the critical need for the three tiers of government to align in support of long-term collaborative planning.

The COVID recovery program, which centres around vastly increased spending on infrastructure, provides the opportunity and the need to improve working relationships between the three tiers of government. Measures need to be put in place that promote long-term planning and greater breadth and depth in Australia's industry, including entities with a $1 billion-plus per project tier 1 delivery capability, which is sadly lacking now. Responsible spending of our taxpayers' money should be a prime concern. Therefore, a systemised mechanism must be put in place that ensures value for money at every stage of government procurement.

Our committee did not originally foresee the full gravity of the issues that would emerge as the inquiry progressed. With the growing threat of coercive trade threats and bans, particularly from China and now the Russian invasion of Ukraine, we now have a sovereign vulnerability that in more stable times may have remained unseen. The price of freedom is eternal vigilance. This inquiry should stimulate a new era of vigilance.

I thank inquiry participants and each member of our committee for their contributions. I also give my thanks to the committee secretariat—in particular, Samantha Mannette, Nicolette Cilia and Lachlan Wilson for their work—and, in particular, our co-chair and my dear friend and tennis partner, Luke Gosling. It has been great to work with you. Again, this has been an example where well-intentioned people from both sides work together and produce a great result. I'm indebted to you, and, while I won't be seeing you as much in the future, Luke, I will come back and play tennis with you. I thank the House, and I commend the report to the House.

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