Letter to the Executive Director of the Housing Industry Association

11/09/2023

Letter

Monday 11 September 2023Michael McGowan Executive Director Housing Industry Association Western Australian Region 22 Parkland Road Herdsman Business Park Osborne Park WA 6017Via email: m.mcgowan@hia.com.auDear Michael, I was pleased to meet with you today in my role as Chairman of the Home Builders Action Group [HBAG] and to have the opportunity to discuss with you the immediate past and continuing present problems impacting sectors of the home building industry.HBAG believes it is of critical importance that successful representations are made to Government to:
  1. Acknowledge and respond to the very serious difficulties confronting many home purchasers and the building companies they are contracted to; and
  2. Formulate and implement policies designed to ensure that the “perfect storm” that engulfed a significant part of the industry is averted in the future.
As a result, HBAG seeks that the HIA Western Australian Region convene a HOUSING SUMMITHBAG acknowledges that you may think it appropriate that the requested summit include only a section of your members (the HBAG represents small and medium size builders) and it believes that:
  1. The Home Building Contracts Act is not fit for purpose in the present environment and must be urgently changed.
  2. Further Government stimulus must be directed through the builders and the trades to keep the industry afloat.
  3. Trade Training has to be addressed and reshaped to produce skilled workers quicker.
  4. An intelligent industry assistance package should address:
    1. The funding crisis resulting from 2 years of losses and that means “No and Low interest loans”;
    2. Assistance for legacy and loss-making contracts resulting from the shortcomings of the Act.
    3. Indemnity schemes that work and don’t leave builders and homeowners high and dry; and
    4. The need for a much closer working relationship between the industry and government.
    As an example, the federal government’s plan to build another 1.2 million homes is absolutely unrealistic. Many Western Australian builders can’t afford to finish the homes they have started and there’s no capacity to take on more orders.HBAG believes that it is not just a matter of more money – it’s a matter of spending the money already allocated more wisely.HBAG believes it is the proper role of your organisation to convene the summit it is requesting, and you will have our complete support in successfully organising it and attracting appropriate Government and Opposition representatives.I look forward to your advice in due course.Best wishes Yours sincerely Jason Janssen CHAIRMAN Home Builders Action Group 0412 373 404