By Jason Jansson, HBAG Chairman
Thanks for inviting the Home Builders Action Group to join you this evening.
The Group was established earlier this year to represent small and medium sized builders with particular emphasis on the need to be heard by Government.
Before I explain the objectives of my Group and the things we are doing to achieve those objectives, I hope you will indulge me while I address the political context in which we are operating.
The first thing is to stress is that the HBAG is strictly non-party political.
But we’re not silly, and that means acknowledging political realities.
The Cook Government has a massive majority in the Legislative Assembly…53 seats out of 59.
The Nationals have 4 seats and Liberal Party just 2.
Miracles can happen but it is very difficult to see the Cook Government being defeated at the next election. There’s no doubt it will lose seats but how many it loses depends on how it performs and, very importantly, the ability of the Liberal Party to win support.
It also depends on how the National Party positions itself to attract conservative voters.
I’m sorry to take so long but it is important for me to tell you that we know what you are doing in moving into the metropolitan area and why you are doing it.
Having said that, I hope you will understand when I say I am not prepared to say anything further about politics or to answer questions.
I’m not here for that.
It has now become clear that – leaving aside the plight of small to medium sized builders – the hurt and distress to home buyers who are mainly families, many building their first home, has become almost intolerable.
It is the most serious crisis in the experience of builders my age and I’m 50 and have been building for 21 years.
It seems that every day there is a report of a builder going bust or a family waiting up to three years for their home to be built. In that time, most are paying rent as well as mortgage repayments on the loan to build their home while the delays mean rents go through the roof (if you are lucky enough to find a rental) and homelessness worsens.
Without apportioning blame or dwelling on problems, it is clear that the building industry has nothing like the capacity required to build the homes demanded of it, to meet targets set by government.
Now, we all know the problems:
1. Homebuyers confronting collapsing builders leaving unfinished homes; unmanageable cost increases and insufficient insurance cover; 2. Well intentioned Government stimulus that simply added to the already overheated demand and made things worse; 3. Building collapses at rates not previously seen; 4. A seismic shift in labour away from building to, mainly, the resources industry; and 5. Spiralling costs.
The result is a diminished industry without the capacity to meet the community’s needs as reflected in Government targets.
And that means
· Fewer homes being built when demand is greater;
· A distorted rental market with fewer rentals available;
· Rents no one can afford;
· More expensive public or social housing; and
· Increased homelessness.
The Home Builders Action Group knows that out of 100 people, 99 can tell you what the problems are while only one will propose a solution.
The Home Builders Action Group has consistently proposed solutions it believes are affordable and will be effective.
They are:
FIRST
NO COST ASSISTANCE
The amendment of the Home Building Contracts Act (1991). Almost everyone, of the builders who’ve contacted us knows that the straitjacket this act put them in is the root cause of many of their problems. Obviously, it can’t be amended overnight but an early statement by the government that it is going to adopt a process that will achieve changes in, say, four months will go a long way in relieving home builders facing ruin and home buyers with unfinished homes.
SECOND
LOW-COST ASSISTANCE
A Loans Scheme (similar to that which applied in the COVID-19 period) is the second clear message we are getting from our members. This is not free money and will be designed to support the reputable long-term builders – many of whom have been in the industry for 20+ years.
THIRD
AN ASSISTANCE PACKAGE
An Assistance Package – HBAG knows this cannot be open ended and needs to be insulated from approaches by other sectors. The clearly proper way to provide support through an Assistance Package is to link it to the present and immediate past contracts which were turned into losing contracts by two things – The Home Building Contracts Act and the Government Stimulus. If these two criteria are used in a properly thought-out assistance package, the assistance will go to where it is needed; will be quantifiable; restricted by qualification and isolated to the home building industry.
So, in conclusion, I’ve tried this evening to:
- Outline the political context in which our group is operating;
- The problems our industry – and the community – is facing;
- The causes of those problems; and finally
- The affordable and achievable solutions we see to the problems.
Thank you for your attention.