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Calls for State Government to join Federal Government in giving cash to stimulate Gold Coast’s struggling building industry

The Gold Coast’s building industry is set to benefit from a billion dollar stimulus package which could also be great news for home owners.

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PRIME Minister Scott Morrison’s construction package is expected to throw a lifeline to Gold Coast tradies and builders suffering a massive downturn during the pandemic.

Homeowners will be offered grants of around $25,000 to build new homes under a new stimulus plan, but renovators will have to match the “free” cash by more than a dollar for dollar.

The announcement, expected tomorrow, means smaller, DIY projects will be locked out of the Prime Minister’s renovations bonanza to ensure the money supports tradies’ jobs.

Treasurer Josh Frydenberg was coy on the details but senior government sources confirmed a figure of around $25,000 is “in the ballpark”.

Cabinet maker Clive Payne was shocked but overjoyed at news of the Federal Government’s construction stimulus package. Picture: Jerad Williams
Cabinet maker Clive Payne was shocked but overjoyed at news of the Federal Government’s construction stimulus package. Picture: Jerad Williams

European Design Kitchens owner Clive Payne said the news was “unbelievable, and that’s music to my ears if that is the case, truly that’s just amazing. But I’ll just have to believe it when I see it”.

Mr Payne’s Mudgeeraba business has been limping along since the coronavirus pandemic as clients, both locally and interstate, had pulled the pin on kitchen renovations.

“People from interstate with investment properties have put a hold on their jobs and we’ve had many customers postpone their major renovations because of the panic. We’re not on death’s door but we’re not firing on all four either.”

Steven Webb, owner of Buildlink, said many clients had pulled out or postponed renovations citing financial uncertainty and concerns about future coronavirus restrictions.

“Any stimulus package geared towards the construction industry would not only help me but other builders, especially those who’ve had to stop bigger projects,” he said.

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Marie Nakic, owner of Pro2Pac, has noticed a 71 per cent increase in DIY customers since COVID-10 restrictions were introduced. Picture: Jerad Williams
Marie Nakic, owner of Pro2Pac, has noticed a 71 per cent increase in DIY customers since COVID-10 restrictions were introduced. Picture: Jerad Williams

“I’ve had a few older retired clients who have cancelled their renovations because their super funds were hit quite badly and their unsure about their economic future.

“A job in Tallebudgera for a Chinese actor has stopped because he hasn’t had any form of income for six months.”

Marie Nakic, owner of Pro2Pac, the Gold Coast’s largest 2Pac painting facility, said while obviously beneficial to bigger construction firms, it’s also going to have great flow on effects to small-to-medium sized businesses in the industry.

“From carpenters and tilers to cabinet makers and specialist painters like us – it’s a win-win.

“We are hoping to see some new large-scale construction projects in the pipeline come to fruition as well as a continued surge in home renovations.”

Ms Nakic has already noticed a 71 per cent increase in DIY customers since COVID-19 restrictions as Gold Coasters ditch big projects in favour of inexpensive facelifts.

Prime Minister Scott Morrison speaks to the media during a Western Sydney Airport Rail Link announcement in Sydney. Picture: AAP.
Prime Minister Scott Morrison speaks to the media during a Western Sydney Airport Rail Link announcement in Sydney. Picture: AAP.

Masters Builders Gold Coast regional manager John Duncalfe applauded the move but said the peak industry body was pushing for grants of $40,000 to further stimulate the building industry.

“So because the Feds have come in with $20,000or $25,000 we’ll calling on the State Government to pick up the shortfall and top up this up to $40,000,” he said.

“We predict that come August and September building approvals will decline and that’s why what happens to the JobKeeper payment is a big issue also.

“It does seem the powers that be are listening and that’s good. Our industry underpins so much retail on the Gold Coast, from the person who lays the carpet to the woman who owns the tile shop in Nerang.

Mollie Payne and Clive Payne, owner of European Designs Kitchen, with Pro2Pac owner Marie Nakic. Picture: Jerad Williams.
Mollie Payne and Clive Payne, owner of European Designs Kitchen, with Pro2Pac owner Marie Nakic. Picture: Jerad Williams.

“If the building industry stops, it all stops and that’s what we can’t afford. Similarly, if building stops then we don’t know what will happen to apprentices.”

Mr Duncalfe said he’d also approached the Gold Coast City Council, saying during the GFC Mayor Tom Tate provided relief in infrastructure charges to shovel-ready projects and that’s how the local building industry got restarted.

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Original URL: https://www.goldcoastbulletin.com.au/news/gold-coast/calls-for-state-government-to-join-federal-government-in-giving-cash-to-stimulate-gold-coasts-struggling-building-industry/news-story/8666c180b00e62e778cfaca0477514f7