Ripper pursues international construction firms

Deputy premier Eric Ripper is planning to lead an international infrastructure mission to Europe to try and attract international construction firms to Western Australia.

Mr Ripper is hoping that new construction firms will help WA cope with capacity constraints, which are leading to delays and cost increases in infrastructure projects.

"I think we need more participants in our market so that we have got more capacity to drive forward our economic growth," he said after addressing a Committee for Economic Development of Australia lunch.

"What I would be doing is talking to international businesses with the capacity to offer those services.

"I'm looking at construction companies and other infrastructure providers."

A small number of big construction firms dominate infrastructure projects in WA, and most of those firms are part of the Leighton Holdings group.

For instance, the two consortia bidding to build the Perth to Bunbury Highway are led by Leighton Contractors and Thiess, which are both owned by Leighton Holdings.

Leighton also owns John Holland Group and Broad Construction Services.

However Mr Ripper said the delegation was not a reflection on current industry players.

"Not that I am unhappy with the current participants, just that I think we may be at capacity and we need to do something about that."

Mr Ripper said he would lead the delegation, due to depart for Europe in October, and hoped to have business groups included.

He believes new construction companies will help the state, despite the current shortage of skilled labour, which was highlighted today by statistics showing another increase in skilled vacancies.

"What might happen is that there could be a bit more competition in the market and that would be good in particular for taxpayers

"People if they came would bring professional and managerial expertise, and some companies may even bring workers.

"For example, today I was talking to Grocon, a company based in Victoria, and they have got a significant blue collar workforce; they may bring some of those people to WA if they participate in our market."

When asked about WA projects, such as the North West Shelf Venture's Train 5 project, that are sending engineering and fabrication work offshore, Mr Ripper said: "I would like the work to be done in Western Australia so I would like the business to come here rather than the work to go to businesses offshore".

Mr Ripper said he did not believe industrial relations problems would deter international companies from coming to WA.

He told the CEDA lunch that the estimated value of private and public sector infrastructure projects in WA over the next decade was $650 billion.