Meeting with West Australian Minister for Finance, Commerce and Women’s Interests

01/08/2023

Meeting

AGENDA

Home Builders Action Group Meeting with
The Hon. Sue Ellery
Minister for Commerce Minister for Finance; Commerce and Women’s Interests

10.45am on Tuesday 1 August 2023 at 12th Floor, Dumas House, 2 Havelock Street, WEST PERTH WA 6005

ATTENDING for the Home Builders Action Group

Damien D’Ascenzo
Deputy Chairman of HBAG
Principal of Dasco Home Building Group – a leading small to medium home builder that has operated successfully for 20 years. Entering the industry as a tradesman plasterer; then as an estimator and a supervisor for leading, big building companies before establishing the Dasco Home Building Group.

Lyndon Reitsema
Executive Committee Member of HBAG
Began working in the industry as an Apprentice Cabinet maker aged 15. Mentored by a registered builder who encouraged Lyndon to get my registration. Worked as a building supervisor from 2004 in a start-up company and in 2011, gained his own registration. Kings Rd Construction was established in 2014 specialising in Custom Home building.

Frederik Suhren
Executive Officer of HBAG.
Experienced as a manager at senior levels in the private sector and as a consultant to private sector business.

1.0 Introduction

The Home Builders Action Group [HBAG] was established:

  • To represent the small to medium sized building company;
  • In response to unprecedented financial, supply, trades and other pressures; and
  • So that a coherent case might be presented to Government in an effort to avert the worst of what lies ahead.

2.0 The Home Building Industry and its outlook

In some ways, the home building industry is the “canary on the coalmine” – it is quick to react to the changed business environment.

Attached to this AGENDA is a list of companies that have ceased trading in Western Australia in the past 18 months.

That list is just the tip of the iceberg – without early and decisive Government action things will get much worse.

3.0 Home Building Contracts Act

The Act – which in ‘normal’ circumstances served the industry and its clients well – is now not fit for purpose. It’s restrictions compound and amplify the problems for builders and their clients in circumstances where unprecedented price increases were not (and could not have been) forecast. In a high and rising interest rate environment, the Act is pushing builders into receivership and confronting home buyers with spiralling costs they cant afford to buy houses that now take years to build.

4.0 Review of Government Grants and assistance

Well-intentioned – Government grants have simply added to the cost pressures of an already overheated market. That’s clearly seen in the extensions to the time frames attached to the grants.

5.0 Trades

New and innovative training courses are essential if the industry is to finally escape the “boom and bust mentality” and accommodate the drain of trades to other sectors.

6.0 Review of Government Grants and assistance

The context for HBAG seeking assistance from Government is

  • Reputable established builders are locked into fixed price contracts impacted by price rises that can’t be passed on and that
  • Banks and other Funders refusing to extend lending or credit and
  • High and increasing demand for housing being adversely impacted.

HBAG believes the Government should seriously consider assistance to qualifying applicants in the form of:

  • Government Guarantees;
  • Interest free and low interest loans; and
  • Grants

There is no comparable industry that has been so adversely affected by the principal act regulating it and by Government efforts to assist it (Home Buyers Grants) that have had unintended adverse consequences.

HBAG believes a properly thought through Assistance Package will allow its members to play a valuable and important role in underpinning Government policy to alleviate

the housing shortage. At present, the reverse is the case as the difficulties, left untended, diminish housing stock.

Companies that have ceased trading as a result of financial pressures in the past 18 months.

  1. CONSORTIUM BUILDERS PTY LTD
  2. PJP PAINTING PTY. LTD.
  3. MADELEY RISE PTY LTD
  4. CANDOR CONTRACTORS PTY LTD
  5. HOME INDUSTRY BUILDERS PTY LTD
  6. NEW SENSATION HOMES PTY LTD
  7. SIROCCO ENTERPRISES PTY LTD
  8. COYNE PROPERTY GROUP PTY LTD
  9. COYNE GROUP HOLDINGS PTY LTD
  10. JK FACTORY PTY LTD
  11. JK RETAIL PTY LTD
  12. JK RENOVATIONS PTY LTD
  13. EAST PILBARA BUILDING COMPANY PTY LTD
  14. BABYLON HOMES AND CONSTRUCTION PTY LTD
  15. TMP INVESTMENTS WA PTY LTD
  16. MNS ELECTRICAL & DATA PTY LTD
  17. CROFT CONSTRUCTION GROUP PTY LTD
  18. M & T CONSTRUCTION GROUP PTY LTD
  19. NAMI CONSTRUCTION PTY LTD
  20. INDIAN OCEAN BUILDING COMPANY PTY LTD
  21. M & T CONSTRUCTION GROUP PTY LTD
  22. BASSI DEVELOPMENTS PTY. LTD.
  23. MITIE CONSTRUCTION PTY LTD
  24. WESTERN GLASS PTY LTD
  25. PERTH WORKS CONTRACTING PTY LTD
  26. THE HOME LOAN FACTORY PTY LTD
  27. RAPLEY WILKINSON PTY LTD
  28. LAMICK DEVELOPMENTS PTY LTD
  29. ZARLA LANE PTY LTD
  30. BATAVIA VISTA PTY LTD
  31. MORESBY PROJECTS PTY LTD
  32. REVIEW CONSTRUCTION PTY LTD
  33. BIG BEN BUILDERS PTY LTD
  34. WESTERN BUILDERS AUS PTY LTD
  35. WA HOUSING GROUP PTY LTD
  36. BETTER HOMES W.A. PTY LTD
  37. INDIVIDUAL DEVELOPMENTS PTY LTD
  38. ADD CONSTRUCTION WA PTY LTD
  39. DML TECHNOLOGY AND INVESTMENT PTY LTD
  40. METRO HOMES WA PTY LTD
  41. ANDY POLLARD HOMES PTY LTD
  42. IN & OUT PLASTERING (WA) PTY LTD
  43. METRO HOMES WA PTY LTD
  44. HAWKINS BUILDING CO PTY LTD
  45. HANUMANTEY PTY LTD
  46. ULTIMA UNITED LIMITED
  47. PRIDE HOMES & DEVELOPMENTS PTY. LTD.
  48. ULTIMA UNITED LIMITED
  49. GLAZE N CHIP PTY LTD
  50. FLEXIBLE HOMES PTY LTD