Today I invite industry to work with the Rudd Labor Government to develop a National Prequalification System which will cut red tape, boost competition within the construction sector and promote a more seamless national economy.

Expected to be in place by 1 January 2011, this new national regime would mean a private contractor registered in one state or territory would automatically have its qualifications recognised everywhere else in the country.

At present, states and territories operate their own separate prequalification regimes, with each requiring contractors to prove their technical and financial bona fides as well as their ability to deliver value for money before being allowed to operate.

Without a doubt, one national system and one set of nationwide rules simply makes commonsense and is yet another long overdue micro economic reform being delivered by this Labor Government.

Initially, the national system would replace existing state and territory regimes for road, bridge, and commercial construction tenders valued at over $50 million, with a more ambitious threshold to be considered once these new arrangements have been bedded down.

The consultations with industry will start later this week (10 June) and be undertaken by the Australian Construction Industry Forum, the Australian Procurement and Construction Council and Austroads.

At the conclusion of their consultations, Austroads and the Australian Procurement and Construction Council will prepare a detailed reform plan for consideration and endorsement by the Council of Australian Governments (COAG) later this year