URGENT and CONFIDENTIAL
Tuesday 29 August 2023
The Hon Sue Ellery
Minister for Finance, Commerce and Women’s Interests
12 Floor
Dumas House
2 Havelock Street
WEST PERTH WA 6005
Via Email:
Minister.Ellery@dpc.wa.gov.au
C. C The Honourable Roger Cook MLA
Premier of Western Australia
13th Floor Dumas House
2 Havelock St
WEST PERTH WA 6005
Via E-Mail:
Roger.cook@mp.wa.gov.au
wa-government@dpc.wa.gov.au
C.C The Honourable John Carey MLA
Minister for Planning, Lands, Housing and Homelessness;
11th Floor
Dumas House 2 Havelock Street WEST PERTH WA 6005
Via E-Mail:
Minister.Carey@dpc.wa.gov.au
Dear Minister
RE: Your letter of 29 August 2023
Thank you for your letter of today’s date to which I refer.
It is difficult for the Home Builders Action Group to accept that you still believe that
“The building stimulus packages provided by the State and Commonwealth Governments in mid-2020 were important and necessary initiatives to support the building industry in the difficult circumstances…”
Of course, HBAG accepts the policy was well intentioned. But it proved to be the opposite to what was needed. As the Reserve Bank warned about approaching inflation, the State Government assistance compounded and amplified cost pressures at a time when monetary policy signalled the opposite was required.
It is to be hoped that your opinion that cost pressures will ease is correct. HBAG believes this is unlikely until well into next year and that, it will result in large part from a drastic increase in the number of small to medium sized building companies that experience severe financial distress and the inability to carry on. And, obviously, it goes without saying that a major depression or recession will see a downward pressure on costs but at what price?
HBAG acknowledges your view that the Government implemented a number of assistance and support measures during Covid.
However, HBAG is most disappointed that you will not consider the parlous state of the industry and at least discuss assistance measures that might be appropriate.
And, while you say:
“it would not be appropriate for a State Government to fund a loan scheme for private businesses using public funds.”
That observation does not accord with past and continuing public policy and practice. I will not weary you with the numerous government funded small business, rural reconstruction and other financial arrangements put in place to assist business by governments of all political persuasions but I am happy to supply a list of those for you if you require it.
Again, HBAG appreciates your advice about your Department’s involvement. In that respect, you might consider this is an issue in which – after discussions with HBAG – you might convene a meeting with departmental officials at which proposals for reform might be progressed. The same approach might more efficiently address desirable changes to the Home Building Contracts Act.
Referring to your advice about training, I am afraid HBAG may not have made its views clear. All of our members are long term and successful builders. The fly by nighters and less substantial builders are those who have already shut their doors. All of our members are aware of the services and assistance available through Jobs and Skills Centres. The position HBAG was trying to draw to your attention was the Macro challenge involved in a complete revamp to relevance of the skills training and education regime (including recognition of foreign trained tradesmen) that is urgently required.
Minister, your letter did not refer to the meeting foreshadowed with our members. Could you please advise us of a date, time and location that will suit your calendar. HBAG and its members are available at your convenience.
Lastly, Minister, HBAG is very keen to work with the Government. We were disappointed that Minister Carey “handballed” the issue to you but heartened by your prompt and open attention. We accept then pressures on you but wish to emphasise that the issues we are raising are a matter of survival for us and our families. We simply cannot afford to fail in our efforts to persuade the government to our view.
I look forward to your advice.
Best wishes
Yours sincerely
Jason Janssen
CHAIRMAN
Home Builders Action Group
0412 373 404