Building industry warns of shutdown unless compromise found for travel between sites
Building industry leaders are warning most of Melbourne’s construction industry could shut down within days if workers are not allowed to move between job sites under new stage four restrictions.
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Most of Melbourne’s construction industry could shut down within days unless exemptions are made to allow key trades to move between sites, industry figures have warned.
The Andrews Government was on Wednesday night negotiating with unions, builders and industry groups on the looming requirements that workers remain at one site during the lockdown.
The rule is not expected to create major problems for large projects but has the potential to cause significant delays at thousands of smaller sites where roles such as electricians and plumbers may only be needed for two to three days before moving on to other builds.
Master Builders Association of Victoria chief executive Rebecca Casson said work was now under way to clarify these regulations.
“We understand the state government’s desire to reduce movement of the Victorian workforce thereby reducing risks of COVID-19 transmission,” she said.
“However, we are deeply concerned by the consequences on our industry and those we serve. “If these directives aren’t properly thought through and applied, most of the building and construction industry will shut down within days.”
Premier Daniel Andrews on Wednesday said they were working through special consideration to allow specialist trades and supervisors to move between various project sites under a COVID safe plan.
The Housing Industry Association (HIA) executive director in Victoria, Fiona Nield, said trade contractors needed to be able to travel from site to site over the next six weeks.
“If we can’t find a sensible arrangement it would mean a significant number of housing projects would be impacted,” she said.
“It is the normal way of construction occurring on residential building projects.
“We’re very confident that trades contractors are applying COVID safety rules and they will continue to.”
Stockland chief executive Mark Steinert said housing was a major driver for the state’s economy.
“Over $22.8 billion of residential construction activity was carried out in Victoria last year,” he said.
“The property industry believes that civil infrastructure works can continue safely on large scale greenfield sites, with strict COVID safe protocols in place and social distancing can be maintained in an outdoor environment.”
It comes as brickies and tilers are expected to abandon Melbourne and go west as Victoria’s 10-year building boom stalls over the next two years.
The HIA has warned the state’s homebuilding economy growth will plunge from top of the nation to the bottom by 2022.
HIA senior economist Tim Reardon said COVID-19 would cost the state its “quite remarkable” six-year reign as Australia’s new homes powerhouse with plunging migration and international student numbers to erode the population growth driving demand for new homes.
Mr Reardon said the state’s housing industry had consistently outperformed its 10 year average for a decade.
But with the number of new homes being built to fall from 55,000 in the past financial year to 44,000 across the next 12 months, the industry would lose jobs.
Builders working on apartment complexes around the city will be the most at risk and the federal government’s $25,000 HomeBuilder grants are expected to provide a short-term boost for new house construction.
“Even with HomeBuilder and other government support programs, it’s difficult to see Victoria getting back to building the same number of homes in the next few years,” Mr Reardon said.
“Victoria has been attracting skilled building workers from a number of states, particularly out of WA and SA, but as employment opportunities slow there, and pick up in the west, we are likely to see some of those skilled building trades go back west.”
Carpenters, bricklayers and even tilers are among those likely to relocate.
Despite the current concerns, HIA’s latest Housing Scorecard showed how successful Victoria had been prior to COVID-19 at driving jobs growth, demand from international students and major infrastructure projects — with all three spurring its construction industry.
The Scorecard measures industry activity based on new house and unit construction, renovations, housing finance and migration figures.
It ranks states based on how they are performing against their own 10-year average.
The report suggested that by 2022 Western Australia, currently at the bottom of the nation’s rankings, will replace Victoria at the top.
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