Master Builders Australia (MBA) has warned investing in Australian property could be made more difficult by the government's decision to abolish industry watchdog the Australian Building and Construction Commission (ABCC).
It argued parliament's decision to pass the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2012, which scrapped the regulatory body, could seriously damage productivity in the sector.
Wilhelm Harnisch, MBA chief executive, said history would prove the government has blundered in going ahead with these plans, which he called a "huge and damaging mistake".
"There remains serious systemic unlawful industrial behaviour in the commercial building sector that can only be properly dealt with using the current laws administered by the ABCC," argued Mr Harnisch.
His anger was shared by the Housing Industry Association (HIA), which claimed the decision represents an open invitation to lawlessness in the construction industry.
HIA industrial relations spokesman David Humphrey argued that Australia has enjoyed the economic benefits of the ABCC's firm control of the sector over the last six years.
Posted by Steve Douglas
