Coronavirus: Builders call for GFC-sized stimulus ‘to save us’

The construction industry has ­demanded a ‘GFC-sized’ stimulus package to be rolled out ­immediately.

The Australian Construction Industry Forum said much of the spending should go to small and medium-sized enterprises.

The construction industry has ­demanded a “GFC-sized” stimulus package to be rolled out ­immediately, including incentives for ­employers to take on apprentices from outside the sector and fast-tracking of work on government buildings.

Estimating the Morrison government will have to bring forward $66bn in building activity over the next five years to help the sector recover from the corona­virus pandemic, the Australian Construction Industry Forum said much of the spending should go to small and medium-sized enterprises and focus on Australian-made products.

As Scott Morrison and Josh Frydenberg prepare to unveil a multibillion-dollar rescue package for the construction industry, The Australian can reveal there will be direct cash grants for large-scale home renovations for existing dwellings and new builds.

While government sources have said the finer details would be ­finalised in coming days, it is ­believed the grants would be limited to “significant” renovations worth about $100,000 or more.

The building industry has warned that work was fast evaporating from the second half of this year, amid estimates that 400,000 jobs could be lost in the worst-case scenario in a sector that employs 1.2 million people.

The Treasurer on Monday signalled that manufacturers and employees throughout the building supply chain would receive support. “We recognise that it’s a long supply chain. It’s not just the sparky and the plumber and the carpenter on the building site — it’s also the timber mill, it’s also the appliance manufacturer for the new kitchen,” Mr Frydenberg said.

“It’s also those who help with the materials that go into the bathroom. There are lots and lots of contributors to that supply chain, to new construction in the housing sector more broadly.”

ACIF, whose members span the building industry from concept to construction, called on the government to show leadership by paying for projects within one to five days of receiving the receipt and funding cladding remediation to restore public confidence in buildings.

In a range of proposals to be put to government, ACIF executive director James Cameron and chair Norman Faifer asked for an apprentice wage subsidy program, which covers 50 per cent of ­salaries, to be extended to employers that had more than 20 full-time employees, and recom­mended training for stood-down apprentices during the pandemic.

“Incentives for employers to take on new or out-of-work apprentices and candidates from outside the industry into entry-level roles would be very helpful. The construction industry has made great progress with ­diver­sifying our talent pool and attracting talented new candidates. It would be dis­appointing to see these gains lost in a downturn.”

The construction industry wants stimulus spending spread across non-residential, infrastructure and residential projects, particularly “quality” social housing.

The government could bring forward its work schedule by two months to deliver quick stimulus, ACIF suggested, fast-tracking inspections, tests, repairs and maintenance on public buildings.

The Prime Minister said the government was most interested in larger construction projects and new home builds as they would employ the highest number of local tradies. “This is not, you know, building school halls and all those sorts of things,” Mr Morrison told 2GB radio.

Opposition housing spokesman Jason Clare said the government needed to “hurry up”.