COAG - Six star energy efficiency housing affordability challenge
14 November 2008
Statement by Mr. Chris Atkins, Executive Director, Master Builders Tasmania
Master Builders Tasmania have cautioned Premier David Bartlett to avoid signing-up to a Six Star energy efficiency standard for new housing at the Council of Australian Governments (CoAG) meeting on Friday 28th November 2008, or risk derailing Tasmania’s residential building industry.
Executive Director, Mr Chris Atkins, said, “Tasmania’s housing market is in a precarious position as a result of the global financial crisis and now is not the time to experiment with new regulations which could add (up to $10,000) to the cost of new homes”.
“During the past two months, Tasmanian builders have reported tightening credit conditions, rising materials costs and a steady decline in home construction inquiries,” said Mr Atkins.
“While the recent boost to the First Home Owner Grant has stimulated the market somewhat, a great deal of apprehension still exists due to the almost daily shocks in the financial system. Our fear is a jump in housing costs in the order of $10,000 could seriously jeopardise the industry and put future home construction projects on hold.”
“Tasmania is already holding off on the introduction of 5 stars due to concerns about some of the assumptions in the economic modelling and questions about the bias in the rating software. To move to a 6 star rating system based on underlying flawed assumptions is a real risk. The University of Tasmania has undertaken its own research on the software using three purpose built test cells in Launceston and three brick veneer units constructed in Kingston. Once this research is available, the Association will review its position on the matter.”
Mr Atkins added, “ We haven’t seen any evidence that the costs and benefits weigh up at five stars, so it’s going to be even harder to mount an argument for the introduction of six star houses for Tasmania. The Government must also recognise what the industry can handle in the present economic climate.”
“It is unclear whether CoAG plans to increase the mandatory rating for new homes in most states above five stars, but Premiers should be aware that they will be rocking the boat at their economic peril.”
Further information can be obtained from:
MBT Executive Director, Chris Atkins on 0438 623 438 or alternatively,
MBT Director Economics and Housing, Michael Kerschbaum on 0438 343 810.
