Vic premier wants construction cost probe

The Victorian government will for the third time press its case with the federal government for an inquiry into rising construction costs.

Premier Ted Baillieu was in Canberra on Thursday for the inaugural COAG Business Advisory Forum at Parliament House.

He will also meet with Prime Minister Julia Gillard and his state and territory counterparts at the Council of Australian Governments (COAG) meeting on Friday.

Mr Baillieu says he will again push the federal government to ask the Productivity Commission to report on the nation’s rising construction costs.

“We are very keen to get the issue of construction costs in this country addressed,” he told reporters.

“We believe we now have both the evidence and the support on a widespread basis to do that.”

Mr Baillieu said there needed to be a much greater focus on productivity.

He said the federal government’s carbon tax would have a major negative impact on Victorian businesses, as well as services such as hospitals and schools.

“The impact is significant, the compensation is not sufficient, the timing couldn’t be worse in terms of the economy,” Mr Baillieu said.

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