Login
ISCOVER
While multiple builders have collapsed around the country, Tasmania has estimated it will need thousands more construction workers to complete its newly launched housing commitments.
The state has been in talks with construction industry stakeholders, as challenges for the sector threaten its recently launched housing measures.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The Tasmanian government has signed a memorandum of understanding (MOU) with building and construction industry stakeholders, in an effort to address pressures for the sector that could threaten the state’s programs across infrastructure and housing.
Tasmania recently unveiled its state budget, which outlined a number of measures for housing, including a $538 million investment for social and affordable housing and homelessness initiatives, with $204 million to be spent in 2022.
The $204 million allocation will contribute to the construction of around 1,169 new homes, helping the government make progress on its recently launched 10-year housing plan, with a June 2023 target of 1,500 new houses.
The government’s $1.5 billion package is promising to deliver 10,000 new homes within the next 10 years.
Additionally, the government has decided to pump money into new infrastructure including roads, schools, education, ports and renewable energy.
To complete the work now lined up in its infrastructure and housing pipeline, the Tasmanian government has estimated the state will need another 6,500 construction and building workers by 2025.
But the collapse of construction companies within the state and nationwide, as supply chain issues drive up costs and businesses struggle with staff shortages, could stand in the way of the government’s plans.
Recent Equifax data showed that during the March quarter, 270 construction companies across Australia filed for insolvency.
Tasmania’s new MOU, which was developed by a construction and building roundtable of industry and government players, is aiming to get more boots on the ground in order to meet Tasmania’s demand.
It has outlined a number of key focuses, with the government and industry aiming to deliver:
- A regular and reliable infrastructure pipeline
- Supply of equipment and materials
- Improve planning and regulatory processes
- Build resilient, high-performing businesses
- A sustainable approach to risk management
- Improve procurement processes and practices
“We recognise that our construction industry is a key contributor to our Tasmanian economy, as the fourth largest employer providing over 20,000 jobs,” a statement from Guy Barnett, Tasmanian Minister for State Development, Construction and Housing, said.
“We recognise that we need to partner with industry to address gaps and challenges in how we work with industry and collaborate in building resilience in our supply chains and businesses to meet the challenges of the future.”
Earlier this year, Tasmania launched financial assistance for around 50 home buyers left in limbo, after two local construction companies went under.
[Related: How will Labor’s policies tackle housing affordability?]
JOIN THE DISCUSSION