Expected construction slump prompts calls for fast track on key projects

Construction companies are calling for key projects like a second Adelaide stadium to get built. But the Treasurer says the big projects are not the ones to fast track.

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Adelaide’s second stadium and a new Women’s and Children’s Hospital should be fast-tracked to alleviate a looming construction downturn, the industry is urging.

New survey results for Master Builders Association members in South Australia show they are very concerned they will be left with significant challenges even after widespread coronavirus restrictions are lifted.

But Treasurer Rob Lucas said large projects were not the best options to fast track because of the time they took to get off the ground.

Association chief Ian Markos said the construction industry had been lucky because it was able to stay open while others had not.

“But we are ready and able to step up even further,” he said.

“If there is a strong government focus on allowing our industry to thrive, other areas of the economy will pick up, too. Other industries simply can’t match the multiplier effect we have.”

The industry has put forward a wishlist of reforms including:

INVESTMENT in infrastructure such as the Supreme Court redevelopment and a second city sports stadium;

BRINGING forward delivery time frames for projects such as the Women’s and Children’s Hospital;

REFURBISHMENT and maintenance of government buildings;

ABOLISHING stamp duty for first buyers on new builds;

TIME-LIMITED First Home Owner Grant of $35,000 for those buying or building new homes; and

RELEASING more land.

Mr Lucas said the government had already moved quickly to fast-track $170 million worth of new major infrastructure projects as part of its $1 billion economic stimulus to sustain jobs during the COVID-19 crisis.

“The government is also fast-tracking as much of its record $12.9 billion infrastructure program as is possible.

“In this crisis, it makes much more sense to invest in shovel-ready projects that sustain jobs and local businesses right now and over the coming months – to help get them through to the other side – rather than projects that are still in their early stages and still need to go through relevant planning and approvals.”

Mr Markos said a new survey of MBA SA members found 85 per cent had a fall in the amount of forward works on their books and 28.5 per cent had reduced their number of employees.

“There were significant supply issues, particularly with timber, tiles, windows, electrical fittings and plumbing equipment,” he said.