Address infrastructure productivity or risk a legacy of poorer living standards

Australia’s transport sector is calling on the next Australian Government to address the long-standing productivity issues that are impacting living standards and putting unnecessary pressure on already constrained government budgets.

Ehssan Veiszadeh, Chief Executive of Roads Australia, the peak body for roads within an integrated transport system, said addressing Australia’s stagnant productivity is the transport sector’s top reform priority heading into the 2025 Federal Election.

“Construction sector productivity is continuing to decline year on year in Australia. This is directly impacting the community by delaying access to the infrastructure people need – by months or even years – and drawing scarce government resources away from areas like housing, health and social services.

“Inefficiencies in procurement and project delivery, outdated and overly onerous standards that don’t support innovation and a culture of violence, intimidation and unacceptable work practices on construction sites are driving up the cost of infrastructure and service delivery in Australia. These are all issues that can and should be addressed in the next term of government,” Mr Veiszadeh said.

Disrupted labour productivity is one of the biggest impediments to delivering the infrastructure and services our growing communities need. Roads Australia members report that the cost impact of repeated construction delays and a poor working environment adds an additional 30 per cent to total project costs.  

“On major public infrastructure worksites, workplace safety has not only been undermined – it has been weaponised, causing unnecessary delays and costs to the taxpayer,” Mr Veiszadeh said. “Worksites have been shut down for spurious reasons, sometimes costing up to $5 million a day. Often industrial action has targeted critical works such as concrete pours, which can have a cost impact of tens of millions of dollars. 

“In the context of an unprecedented shift in geopolitics, a cost-of-living crisis and significant budgetary pressures, it is essential that we have an industrial relations environment that is productive and provides certainty of time and cost.

“Productivity must improve and this is not incompatible with fair remuneration and conditions. Ultimately, we need workplaces where there is mutual respect between employers and employees and where differences can be resolved quickly and efficiently without the need for project disruption. 

“Whether it is transport, housing, health, energy or social services, poor productivity outcomes will leave us unable to pay for the infrastructure our communities need,” said Mr Veiszadeh.

Roads Australia’s members include Australia’s transport agencies, major contractors and consultants, asset owners and operators, material suppliers and technology providers. 

Media contact: media@roads.org.au