Building industry groups warn tens of thousands to be hit by construction shutdown

Tens of thousands of workers have not been spared from statewide lockdown this time around – but the Premier is looking at getting the sector back earlier.

The state government is considering whether to relax work bans for the construction sector amid backlash over the decision to shutdown building sites and forcing tens of thousands off the job.

Building lobby groups had been surprised that the government had not exempted the construction sector – which employs some 70,000 people in SA – from the seven-day lockdown.

Premier Steven Marshall said the government would work to determine if the government could get the sector back to work earlier.

“This will be one of the first sectors we will want to get up an running again in South Australia because it does employ a huge number of people; personally I have a huge number of schools to build by the beginning of Term 1 next year,” he said.

“There are some things (the sector) put to us with regards to occupational health and safety on sites, if everybody is eliminated from those sites that would actually be quite a dangerous situation, so there may have to be some skeleton staff on some sites for a security reason as well.”

But he reiterated that the government is trying to “significantly reduce movement” across the state.

“There’s no point in us doing everything we can to lockdown the state, providing thousands and thousands of exemptions and we don’t achieve what we need to,” he said.

The Housing Industry Association of SA says new directions will allow builders to undertake “authorised work” such as critical repairs and emergency safety work, such as securing building sites.

In a bulletin to members, the Housing Industry Association of SA has interpreted that as giving authorisation for builders to secure construction sites.

“It was extremely pleasing to see that this morning, the final emergency directions clearly recognise the need for builders to make building sites and home renovation work safe,” HIA SA executive director Stephen Knight said yesterday.

“This is important recognition that you can’t simply close a home building site down in a few hours.

But he also on the government allow manufacturers of steel homes to operate during the lockdown.

“They are just as critical to the supply chain for residential construction as the supply of timber and should therefore receive the same concessions as the mills,” he said.

“Steel frames are around 30 per cent of all new homes built in SA and provide a genuine alternative particularly whilst we are experiencing timber shortages.”

The South Australian construction industry figures warn tens of thousands of workers will lose millions of dollars when they are forced off the job. Picture: iStock

National infrastructure research and advocacy body Infrastructure Partnerships Australia on Tuesday said the government’s decision to lockdown the construction sector was concerning and needed to be explained.

“It is critical for public confidence that the government explain the rationale behind this decision and provide further clarity to industry on the scope and detail behind these new restrictions,” IPA chief executive Adrian Dwyer said.

“With low case numbers in South Australia, a stronger case needs to be made as to why millions of dollars will be withdrawn from the economy.”

“The SA government is putting more than $300m into the infrastructure construction sector each month. “Pulling that investment out, even for just one-week, is going to have a significant impact on the construction sector workforce and the SA economy.”

IPA, which describes itself as the nation’s infrastructure think-tank, is headed by businessman Sir Rod Eddington AO and has executives across multinational infrastructure firms in its ranks.

Master Builders SA chief executive Will Frogley said 72,600 people were employed in the state’s construction with the equivalent of 52,300 people working “on site” directly effected by the shutdown.

“When construction stops, South Australia’s economy stops, so to shut down every building site from Mount Gambier to Ceduna is a drastic measure,” he said.

“Builders are under the pump to get jobs such as school building projects completed within tight deadlines and given this lockdown is government enforced consequences must be taken into account and properly compensated.”

Master Builders SA chief executive Will Frogley says the construction shutdown is “drastic”. Picture Supplied

“Our industry does safety better than just about anyone. We know how to manage risk, socially distance on site and ensure hygiene standards.”

Mr Frogley said work starts on about 230 new homes in SA each week and that would be higher at the moment due to projects funded through the HomeBuilder stimulus grant.

He said the MBSA had asked the government to give builders until close of business tomorrow to shut down building sites and make them secure to avoid damage and theft.

Housing Industry Association SA managing director Stephen Knight said he was surprised by the government’s decision to lockdown the construction sector.

“It’s a bit cruel to stop,” he said.

“We understand the difficult position the government is in and support their desire to knock this on the head but this is going to have serious consequences.

“The issue with building is if you stop it for a week it doesn’t just start up again the next day, you have got to reschedule workers, materials, it will take two to three weeks to recover.”