Dear Member,
Further to my previous advice about the establishment of the Home Builders Action group (HBAG), you will recall that the attachments to my email included the original representation to the Hon Sue Ellery MLC and the follow up to it.
I am now sending you:
They are self-explanatory.
HBAG is most concerned that the very serious financial challenges confronting the building industry are not fully appreciated. Western Australia reflects the depressing national outlook which, in latest returns, has witnessed:
- 201 construction businesses enter external administration in June – an increase year on year of 22.6%;
- In June, construction accounted for 25.5 per cent of all insolvencies;
- Insolvency activity in June was very elevated compared to standards of the past decade and confirm rising insolvencies across the economy;
- It is important to note that insolvencies have been rising right over recent months.
- A total of 2,211 construction insolvencies were recorded in 2022-23, an increase of +72.2 per cent on the previous financial year.
- During 2022-23, construction was responsible for 27.9 per cent of the economy’s total insolvencies.
Even in a good year, July tends to be the worst month of all for construction insolvencies.
HBAG wants to work with its elected representatives and does not want to be alarmist. But, unless sensible policies supporting the industry are put in place, home buyers will – at best – confront big price rises and extended construction times. At worst, the spectre will be insolvent building companies drawing down government guarantees and still leaving buyers unable to find funds to complete purchases. Banks are bow refusing to lend and trades and suppliers will be left unpaid.
If you are concerned about these issues, HBAG would appreciate your support.
In due course, HBAG hopes the Minister will agree to attend the planned meeting with HBAG members and you will be informed of arrangements in the hope that you can attend to.
In the meantime, please don’t hesitate to contact me if you require any further information.
Best wishes
Yours sincerely
Jason Janssen
CHAIRMAN
Home Builders Action Group
0412 373 404