Michael McGowan
Executive Director
Housing Industry Association
Western Australian Region
22 Parkland Road
Herdsman Business Park
Osborne Park WA 6017
Via email: m.mcgowan@hia.com.au
Cc. The Honourable Roger Cook MLA
Premier of Western Australia
Via E-Mail: Roger.cook@mp.wa.gov.au
wa-government@dpc.wa.gov.au
Cc. The Honourable Rita Saffioti MLA
Deputy Premier, Treasurer and Minister for Tourism
Via e-Mail: Minister.Saffioti@dpc.wa.gov.au
Cc. The Hon Sue Ellery MLC
Minister for Finance, Commerce and Women’s Interests
Via Email: Minister.Ellery@dpc.wa.gov.au
Cc. The Honourable John Carey MLA
Minister for Planning, Lands, Housing and Homelessness;
Via E-Mail: Minister.Carey@dpc.wa.gov.au
Michael
Thanks for your call yesterday.
I was pleased to be able to clear up your concerns but a little surprised and a little disappointed that you question the benefit of the introduction of a low, or no interest loan scheme (similar to that which operated during COVID-19, fearing it might not assist small to medium sized home builders who have been so badly impacted by present financial and cost pressures.
A survey of our members and supporters ranked the introduction of such a scheme as the second most favoured assistance option after an Assistance Package that directly helped builders through their difficulties. It was made clear to the Home Builders Action group [HBAG] that banks and other mainstream financial institutions are restricting lending on the basis that after the past two years of loss-making trading had left many builders unable to qualify for loans essential to bolster cash flow.
In that context, a Government supported low, or no interest loan scheme is seen as an important support for long term reputable builders.
And I can see no basis for your concern about any impact on prices. The proposed low, or no interest loan scheme is not “free” or “grant” money that will contribute to overheating the sector. In fact, it will have the opposite effect by increasing the capacity of the industry to deliver the homes demanded of it in circumstances where there is inadequate indemnity insurance and where the worst of all worlds is a builder closing its doors because of impossible cash flow challenges.
You will note I have copied the Premier, the Deputy Premier, the Minister for Commerce and the Minister for Housing on this note as it is important that these decision makers are aware that the various industry bodies are at one on these issues.
Please don’t hesitate to call again if you would like to discuss this issue further. Best Wishes
Yours sincerely
CHAIRMAN HBAG
0412 373 404
Damien D’Ascenzo
VICE CHAIRMAN HBAG
0403 066 028