December Building Approvals Tumble
04 February 2009
Statement by Mr. Chris Atkins, Executive Director, Master Builders Tasmania
The December 2008 building approval figures released by the Australian Bureau of Statistics are cause for a re-evaluation of the relative strength of the Tasmanian Building and Construction Industry. The total value of building projects approved for December fell by a massive 25.4 percent over the previous month and 28.3 percent on the same period last year, putting significant downward pressure on employment, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Atkins said, “The business cycle of the Tasmanian building industry trail our mainland counterparts by six to nine months, as such we are now experiencing the business circumstances they faced in March and June last year. This in part explains such poor approval figures, however consumer conservatism due to the anticipated adverse impact of the Global Financial Crisis (GFC) which is being significantly fuelled by the level of negative media comment is also impacting. The upside of today’s figures is the confirmation that the current market offers significant opportunity to those seeking to have a home or office building constructed, as loyal Tasmanian builders seek to ensure full-time employment for their employees.”
“Mr. Rudd’s recently announced fiscal stimulation package is clearly going to have a positive impact on building approvals and the level of activity within the local building industry. His targeted funding will ensure that all industry sectors and both large and small businesses will have an opportunity to participate in delivering the projects contained within the package. We call on Mr. Bartlett to follow the strong leadership example of Mr. Rudd and to re-structure the State’s capital works program to fill the work shortfall created by the GFC and negative consumer sentiment.” said Mr. Atkins.
Christopher Atkins
Executive Director
For further details contact: Christopher Atkins (03) 6234 3810 Mob. 0438 623 438
