Jason Janssen Chairman Home Builders Action Group
The Home Builders Action Group is pleased to be at this Industry Roundtable and congratulates the organisers and the Government on the initiative.
Very often, critics see discussions like these as TALKFESTS that achieve little…The challenge to all of us is to agree on action to be taken to address the problems confronting not just the industry but the community.
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.
But here, the problems define the solution and the Home Builders Action Group believes that as a matter of urgency, there needs to be:
- Changes to the Home Building Construction Act 1991. It is simply not fit for purpose. And, in a damaging error, some believe it is in the consumers’ interests to leave the Act unchanged, for example, to prevent price rises. Well, that’s not in anyone’s interests and businesses go broke when they can’t pass on fair and justified price rises. Then everyone suffers, especially homeowners. And, by the way, no one prevents brick makers, for example, from increasing their prices without any consultation or justification.
2. The Recovery Loan Scheme – or something similar to it – needs to be reintroduced immediately. This is not free grant money…it is a loans scheme and it is desperately needed to shore up builders’ cash flow until the present problems have passed;
3. There’s no need for further government stimulus. Future state and federal allocations should be used to fund a sensible assistance package to help the industry meet demand. Indemnity schemes need to be urgently reviewed and builders who qualify should be able to access assistance that recognises the damaging impact of government action (the stimulus grants) and inaction (the Home Building Contracts Act).
4. And skilled workers need to be urgently trained or recruited. There’s a good case for expedited training in a more narrowly based skillset. In other words, a shorter and more focused training on the skills needed in our industry and not on skills that are never used. Remember too, migration is not a tap you can turn on and off…the government needs to start working now on recruiting skilled workers from overseas.
On that basis, consistent with the solutions referred to, we propose that a Working Party including:
- Government;
- Treasury;
- DMIRS; and
- Industry representatives
be established to review and recommend action to support and homebuyers, assist the industry, and increase its capacity to build more homes by:
1. Removing financial and other constraints to the supply of materials and labour;
2. Streamlining approval and regulatory processes and requirements;
3. Addressing certainty, stability and consistency of completions as priorities; and
4. Protecting homebuyers and make it easier to purchase or rent a home
I apologise for speaking at such length. But the 120 or so members of the Home Building Action Group are really hurting. They want action and not just more talk about people being Laser focused on levers that need to be pulled. We need to identify the levers and pull them now.