Labor apologises after CFMEU inquiry finds construction policy drove up costs

Queensland Opposition Leader Steven Miles has apologised for Labor's controversial construction wages policy, after a CFMEU inquiry found it inflated costs on three major taxpayer-funded projects.

The commission of inquiry led by Stuart Wood KC is investigating alleged union misconduct in Queensland.

In an interim report released late yesterday, Commissioner Wood was scathing of the former government's Best Practice Industry Conditions (BPIC) policy, which set wages and conditions on government projects.

He described BPIC as "damaging", finding it had driven up construction costs by at least 20 per cent across three projects examined by the inquiry — Brisbane's Cross River Rail, the Centenary Bridge upgrade and the Gold Coast Light Rail.

Commissioner Wood described the estimate as "conservative", warning the true financial toll could be higher because it excluded costs associated with project delays.

On Thursday, Mr Miles said he "accepted responsibility" for the policy, introduced under his predecessor Annastacia Palaszczuk, but maintained it had been "well-intentioned".

"I acted when I could but I accept that I could have and should have acted sooner — and for not acting sooner, I apologise," Mr Miles said.

"It's clear from both the administration that we put in place and the findings of the commission of inquiry that the door was left too far open and that the CFMEU and some contractors misused that policy."

The Crisafulli government suspended the BPIC policy shortly after coming to office in 2024.

Government 'considering' the recommendations

Labor's apology comes as the state government considers two urgent recommendations from Commissioner Wood to overhaul the state's construction industry, including a new building code and a dedicated regulator to enforce it.

Commissioner Wood warned of a "pressing" need for reform, citing "extensive and highly disturbing" evidence of alleged union misconduct and cost blowouts on major projects.

Deputy Premier Jarrod Bleijie said the government had already committed to introducing a building code and was examining the commissioner's calls for reform.

"We are going through the report now, we're considering the report … we're going to meet with stakeholders in the coming days to proceed with this," Mr Bleijie said.

"As you go through it [the report], you see the pressing need for it [the code]," he said.

He said the changes could be implemented through government policy, without the need for legislation.

"We did do the productivity commission report … and it did recommend a similar code … I understand construction stakeholders are on board," Mr Bleijie said.

Mr Bleijie said the proposed code would target bullying and intimidation on construction sites, while protecting workplace safety and freedom of association.

Mr Miles said the opposition would also carefully consider the recommendations made in the interim report.

Master Builders Queensland said a new construction code and dedicated regulator were urgently needed to restore productivity and accountability across the industry.

Deputy CEO Michael Hopkins warned that while the Crisafulli government had scrapped BPIC, many agreements negotiated under the policy remained in place and would "progressively expire" over the next 12 months.

"The true test during re-negotiations will be if the code gives industry the power to reject unreasonable union demands and clauses which give unions control of building sites," Mr Hopkins said.

"If productivity-sapping clauses are stripped away, that will save taxpayers billions of dollars."

Mr Hopkins said the organisation would work with the government and industry to finalise the proposed code.