I refer to the attached NSW Government Code of Practice for the Construction Industry and associated Code of Tendering for the Construction Industry.

These documents embody policies adopted by the Government in response to the NSW Royal Commission Into Productivity in the Building Industry.

The Code of Practice will be the principal means of utilising the State's purchasing power to promote fundamental reforms in the NSW building industry. Other aspects of the Government's building industry reform strategy include law enforcement, corruption prevention, workplace reform, occupational health and safety and industrial relations initiatives.

The Code of Practice and associated Code of Tendering have been developed in a joint effort by construction agencies through the Construction Policy Steering Committee (CPSC).

Consistency in application of these Codes is essential if the Government is tomaximise the effect of its purchasing power to induce industry reform. Both Codes must be rigorously applied and enforced in all Government construction activity.

The Codes will apply to all tenders called after October 30th, 1992. All tenderers must be supplied with the Codes after this date. The CPSC will supplyagencies with multiple copies of these Codes to assist in this regard.

Breaches of the Code of Practice must be investigated by agencies and sanctions applied appropriately. Serious or continuous breaches may result in the exclusion of offending contractors from tendering for all Government work.

The CPSC is preparing guidelines which will explain the Code in greater detail and provide additional information for effective enforcement of the Code and applications of sanctions. This material will be available during the week beginning November 9, 1992.

Enquiries regarding the Code should be directed to the agencies' member of the CPSC. If an agency is not represented on the CPSC, enquiries may be directed to the Executive Director of the CPSC, Mr Ted Smithies (Deputy Director Policy, Public Works), telephone number: 372 8885, facsimile: 372 8822.

I would appreciate your personal attention to this matter, as this issue is a high priority for the Government.

Yours faithfully

J. J. Fahey
Premier