SA Best MLV Frank Pangallo sounds ‘valley of death’ warning over timber shortage

Builders fear a crisis brought on by unprecedented housing activity and a key shortage could trigger job losses and business collapses, a state MP warns.

There are fears a national supply shortage of structural timber could lead to a “valley of death” and job losses across South Australia’s multibillion-dollar building industry.

SA Best has called an emergency summit on June 2 with builders, industry bodies, timber processors and suppliers to discuss the ramifications of the shortage and develop a blueprint. International demand for timber, a lack of imported stock and unprecedented housing activity driven by federal and state government stimulus have combined to constrain supply.

SA Best MLC Frank Pangallo said there were industry fears the crisis could lead to significant job losses and business collapses.

“SA’s critical building sector is about to enter a valley of death situation which will have a catastrophic domino effect,” he said. “If timber can’t be supplied to build houses, carpenters won’t get paid for putting up the frames, bricklayers won’t get paid for laying the bricks, electricians won’t get paid for wiring the house, the businesses that supply those tradies won’t get any orders for materials … and so it continues.

“Already, there is genuine fear many tradies won’t have incomes after July and many businesses will be forced to start shedding jobs by September or October.”

He said there were also “grave concerns” many small to medium-sized businesses would “go bust”.

Fellow SA Best MLC Connie Bonaros said the party had been told there was not enough stock in SA to meet “full orders”.

Timber suppliers are rationing stock and some are not taking on new customers.

Master Builders SA told The Advertiser last week that new home customers faced “thousands of dollars” in increased costs if the timber shortage was not fixed.

Its chief executive, Will Frogley, said on Tuesday he was taking “daily calls” from small builders “stressed they can’t get timber”. “They are the ones fairly and squarely in the firing line,” he said.

SA Best said urgent measures were needed to protect the sector, which it said employed more than 65,000 South Australians. “It’s scandalous that timber logs from local plantations are now being shipped … to India and China because of the high prices suppliers are fetching and demand from Europe and the United States,” Mr Pangallo said.

The Advertiser revealed last week that the federal government was considering funding the transport of thousands of tonnes of pine from Kangaroo Island to a Jamestown saw mill, providing enough timber for 10,000 homes.