As announced on 26 May 1992, the Government, in broad terms, accepted the findings and conclusions of the Royal Commission and is in the process of systematically examining and progressing the implementation of the recommendations.

In ensuring that productivity and efficiency are returned to the construction industry, the Government has adopted the following principal strategies:

the re-establishment of the rule of law within the building industry; and the use of the State's purchasing power to include fundamental change within the industry.

The implementation of these strategies will be undertaken through the following organisational arrangements:

Overall Co-ordination

The Building Industry Royal Commission Implementation Secretariat (BIRCIS) has been established within The Cabinet Office to provide overall co-ordination in implementing the reform process.

The Secretariat will continue initially on a full time and then part time basis until the long term policy and structural arrangements have been established and are operational.

The Secretariat will consult agencies on a regular basis in regard to major issues of relevance to their administration. The Secretariat reports through The Cabinet Office to the Premier, who is assisted in this matter by Minister Hannaford.

Rule of Law

The Building Industry Task Force has been established to pursue criminal investigations and co-ordinate the pursuit of civil matters. The Taskforce will remaining existence until June 1993 at which time the current arrangement will be reviewed.

The Task Force will:

investigate, and when appropriate, take legal action in relation to compulsory unionism, payment for lost time, secondary boycotts, intimidation, threats, abuse of safety legislation and right of entry; co-ordinate and facilitate the use of civil remedies on behalf of the Government; and continue to liaise with the NSW Crime Commission and the Trade Practices Commission regarding organised and sophisticated crimes and anti-competitive practices in the building and construction industries.

Co-ordinating the State's Purchasing Power

As the largest client in the State the Government will use its asset investment programmes to facilitate change within the industry. At the same time other clients of the industry will be encouraged to follow the Government's lead.

The State's purchasing power will be focused by the adoption of a "whole of Government" approach involving consistent capital investment, building, construction and contractual policies.

To this end the Construction Agencies Steering Committee will be responsible for co-ordinating and facilitating:

a thorough overhaul of Government standards and policies; the development of consistent building, consultant and contractual policies to be implemented by Government agencies.

The Steering Committee which was established following last November's "Reform of the Capital Works Planning and Implementation Process in New South Wales" (Treasury memorandum no. TM91/7) will be known in future as the Government's "Construction Policy Steering Committee" and will continue to be chaired by Public Works. The Implementation Secretariat is a member of the Committee.

Policies developed and recommended by the Committee will be submitted for Government consideration. Once approved, the policies will be promulgated in the normal process. Monitoring procedures are being developed.

The implementation of these arrangements will further progress the initiative undertaken in November 1991 and facilitate implementation of the Royal Commission recommendations. However, success will depend on close co-operation between affected agencies and I would like your full support in this endeavour.

Yours sincerely

Wal Murray
Acting Premier