Jeff Kennett: No solution to housing crisis without training more tradies

As the federal and state government offer schemes to tackle the housing crisis, one major factor has been overlooked — we need people to actually build the accommodation required.

Last week I wrote about the need for governments to think differently to address Australia’s housing crisis.

Since then, the federal opposition has announced a $5bn scheme to fund the infrastructure that is required when new housing estates are developed.

That is a start as the cost of roads, sewerage, power, communications etc are an expensive cost to a block of land for development.

The state government announced on Monday a scheme to reduce stamp duty for those who buy apartments and townhouses off the plan.

The scheme will only last for one year until the 21st of October 2025.

Short term but designed to get a response quickly on a sale – but not a reduction in costs for the developer.

The demand for accommodation is only going to grow over the next two decades.

It will really only apply to those buildings currently under construction and to those for which all permits have already been granted, so the developer might have confidence to get on with the construction of their building. If they can get access to labour.

So, I am prepared to be positive, and see at the end of one year how well this short-term fix has worked.

But neither offering from the federal or state government addresses perhaps the major factor required, being labour, tradesmen and women to actually build the accommodation required.

There is no incentive to attract young men and women into apprenticeships that will produce the qualified labour to construct the accommodation over the next 20 years.

Young Victorians must be incentivised to take on an apprenticeship in a building trade. Picture: iStock

Unless of course federal and state governments think the so-called big infrastructure builds around Australia are going to quickly come to an end and those tradies are going to be available to return to the domestic housing market.

If that is their thinking, the view is misplaced. So many of these projects have years to run before completed. And the demand for accommodation is only going to grow over the next two decades.

We need to think and do differently. So, if I were premier today, in the interests of Victorians, as I said last week, I would incentivise young Victorians to undertake an apprenticeship in a building trade.

I would conduct a short sharp campaign to attract their attention and explain the benefits of the scheme.

The ‘Victoria’s Housing Statement’ that Daniel Andrews released only two years ago is already meaningless, and what he committed to undeliverable. Picture: Andrew Henshaw

I would have the government pay the registered training organisation for the cost of that persons training and apprenticeship. I would sign a contract with the apprentice that on the successful completion of their apprenticeship they would not be liable for a HECS fee.

I am sure such an offering would be attractive to many of our young, particularly those who have just settled in Victoria, who are aspirational and would jump at the chance of both training and employment in a growing industry.

I might even consider a sign on fee, and a recognition fee for each year of the course successfully completed.

Until politicians realise there is no quick solution to our housing crisis, without a qualified labour force, and put in place policies and actions that will credibly address the challenge over time, either one of two things will happen.

Nothing, in other words the objectives of policies announced now will not deliver, and the housing crisis will just get worse.

The “Victoria’s Housing Statement” that Daniel Andrews released only two years ago is already meaningless, and what he committed to undeliverable.

Now Jacinta Allan has a plan.

Hopefully it will give developers some confidence, but it does not reduce their costs of construction, it allows some potential purchasers to put down deposits on accommodation at a slightly reduced entry cost.

Premier Allan’s policy is a buy now policy, it might seem popular, but it does not address the long-term issue of accommodation including for rental.

Is it responsible, or right? Time will tell.

Premier Allan’s policy is a buy now policy, it might seem popular, but it does not address the long-term issue of accommodation including for rental. Picture: Nadir Kinani

The other decision by the Allan government announced last week is to allow massive 20 storey high-rise buildings (too high) in several suburbs in the east and south east. So called because they are around railway stations! Rubbish.

This is a deliberate move to change the voting pattern in those electorates. It is a political decision not a housing decision.

If it was access to railway stations why was not Richmond or Burnley identified for such accommodation? It is serviced by four railway stations but not included in the government’s designations.

The Liberal Party should come up with their own suburbs where such high-rise developments might take place, as nothing will be built in the next two years.

Finally, Daniel Andrews to chair Orygen for three years! What an absolute insult. The individual who contributed to more mental illness than any other Australian, and only three years! So is the appointment for Andrews or for Orygen. I suspect the former. Orygen has lost credibility, and Andrews has none.

Originally published as Jeff Kennett: No solution to housing crisis without training more tradies