National employer association the Australian Industry Group has welcomed the Queensland Government's pause on Best Practice Industry Conditions (BPIC), saying it would drive down costs for the broader community.
Ai Group's Head of Queensland, Michelle Farquhar said it was a significant and welcome move.
"The major blow outs exposed in recent weeks are no surprise," Ms Farquhar said.
"Ai Group has been flagging this issue with the Queensland Government since the introduction of BPIC.
"While government procurement can be used to benefit the community, this has inflated costs, especially in regional Queensland, and distorted the labour market.
"Our members have seen first-hand the damaging impact it has had across Queensland on building schools, hospitals, roads, sporting facilities, and more.
"The impact of BPIC has reverberated across the State, and many projects have been shelved because of it, including much needed housing projects.
"We are delighted to see action being taken so quickly after the election," Ms Farquhar said.
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