On 4 January – more than 6 months ago – in a major media event, the State Government announced the No Interest Loans Scheme (NILS) to assist the home building industry as it emerged from the worst trading crisis in a generation.
The Treasurer said: “…many families building new homes had been left with incomplete projects and no timeline for delivery…the innovative loan facility will enable builders who have been unable to complete homes under construction for two or more years due to cashflow constraints, to complete these projects.
The Minister for Housing said: “Providing secure housing to Western Australians, boosting housing supply, and supporting a sustainable building industry are among the top priorities of the Cook Government.”
The full report on the announcement can be seen here: https://www.wa.gov.au/government/media-statements/Cook-Labor-Government/Builders%27-Support-Facility-to-help-complete-stranded-homes-20240104
Now, more than 6 months after all the talk about this urgent, game-changing loans scheme, not a single loan has been made to anyone.
Talk about Groundhog Day, the Treasurer continues to trumpet the government’s commitment to families including housing and the Minister for Housing repeatedly says he is “pulling every lever” to solve the housing crisis. Families continue to wait for homes, some started 3 or more years ago and small to medium sized builders continue to close their doors leaving families stranded with inadequate insurance and big bills. Increasingly urgent inquiries are met with a standard response: “The Government cannot discuss applications for assistance and cannot say when the first loan will be made”.
Remember: This is a loans scheme that requires repayment…not a grant!
HBAG has repeatedly stressed that the crisis in the home building industry is due to the impact of immediate past and present contracts turned loss-making by two major factors:
- The impact of Government stimulus that pushed cost increases to levels not previously seen in the industry; and
- The Home Building Contracts Act (1990) which prevented builders from passing on fully justified cost increases that were unavoidable.
The Home Builders Action Group [HBAG] has come out strongly in support of the NILS and has praised the government for offering to support it in any way requested. Despite past experience, we continue to see announcements about “millions of dollars” being poured into housing as though the problem is soft demand. The opposite is the case: The problem is an industry unable to meet the demand for homes in the context of social distress of increased homelessness, skyrocketing rents and rent gouging; record low rental accommodation; impossible waiting times for even the most urgent government accommodation and affordability out of the reach of most families.
But it has become clear that, in the absence of a viable opposition (the Liberal Party has just 3 members out of 59 in the Legislative Assembly) there is just no pressure on the Government to act quickly.
HBAG will continue to play its part in the months leading up to the next election.
Your assistance would be gratefully received as we mobilise to target specific electorates supporting candidates who support our industry and making sure that our voice is heard at the one time when we know decision makers are listening…ELECTION DAY 2025.
Best wishes
Yours sincerely
Jason Janssen
CHAIRMAN
Home Builders Action Group [HBAG]
jason@hbag.com.au
0412 373 404
Damien D’Ascenzo
DEPUTY CHAIRMAN
Home Builders Action Group [HBAG]
damien@hbag.com.au
0403 066 028