Builders seek backing for $13.2b stimulus plan

The building industry has released its own COVID-19 recovery plan, with a $13.2 billion price tag and the promise of 105,500 construction jobs across Australia. Master Builders Australia says the stimulus action plan it has put forward would spark more than $30 billion in new economic activity. Master Builders Australia CEO Denita Wawn. "We are seeking stimulus not subsidies from government," chief executive officer Denita Wawn said. "We want National Cabinet to urgently implement this independently modelled stimulus package and establish a special task force to fast-track commencement of construction activity.” The industry body commissioned EY to model a stimulus package comprised of the following programs: A $40,000 uncapped the new home building grant. Modelling showed: $17 billion in additional economic activity resulting from $5.2 billion investment by government.The creation of 58,311 jobs right across the economy almost replenishing the 77,580 jobs lost in construction since the start of the Covid-19.Delivering 14,000 extra new homes. Resilience renovation program (funding for renovations to make homes resilient to natural disasters or to make homes more accessible). Modelling showed: $7 billion in economic activity for $4 billion investment by government.Creating 24,036 jobs. Commercial programs including funding for cladding/asbestos rectification, a 10 per cent drop in developer charges, and 5 per cent increase in government spending in health, defence and education. Modelling showed: $6.8 billion in economic activity for $4 billion investment by government. This excludes wider economic benefits in relation to health, safety and building quality.Creating 23,118 jobs. COVID-19 hits construction hard “Building and construction is shaping up to be one of the industries worst hit in the long term by the COVID-19 economic crisis," Ms Wawn said. "We know from previous downturns that it takes four times longer for our industry to recover than the rest of the economy. “This economic crisis is not the result of a market failure; it is the result of the lockdown imposed by governments in response to the public health emergency of COVID-19. We are asking our political leaders to show the same courage and vision in supporting our industry as they showed in responding to the health emergency.” Ms Wawn called for the government to set up a dedicated building and construction industry taskforce to oversee the implementation of the stimulus action plan. "For stimulus to occur building activity needs to commence. Builders and tradies cannot sustain their businesses and jobs on promises," she said. "We have seen that governments can fast-track construction activity in response to natural disasters and COVID-19 is shaping up as an economic disaster.”

Builders seek backing for $13.2b stimulus plan

Industry Queensland

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