Rate cuts will stimulate building activity
05 November 2008
Statement by Mr. Chris Atkins, Executive Director, Master Builders Tasmania
Building approvals, in all sectors rebounded strongly in September, providing significant cause for optimism and demonstrating that the Tasmania construction industry is well placed, despite the Global Financial Crisis, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Chris Atkins, Executive Director said, “It is important to note that today’s building approval figures pre date the October interest rate cut, we anticipate that cut will result in increased future construction activity. Dwelling approvals rose by 9.2 percent over the previous month with non-residential construction increasing by a massive 81.4 percent, whilst alterations and additions rose by 10.9 percent. Non-residential approvals at $88.3 million are the highest recorded in any single month since April 1996, and demonstrate the resilience of the construction sector in Tasmania”
Mr. Atkins continued, “The economic levers being pulled by governments will ensure a soft landing for the local economy and the maintenance of employment numbers for the construction industry. Interest rate cuts, the increased first home owner grants and financial support for small to medium sized enterprises will ensure investors remain confident and employers maintain their current workforce.”
“Tasmanian building approvals for September recorded a 9.2 percent increase over the previous month, only South Australia recorded a higher increase of 17.4 percent. Interestingly overall building approvals fell in Australia during September by 4.8 percent.” added Mr. Atkins.
C. Atkins
Executive Director
For further details contact: Chris Atkins (03) 6234 3810 Mob. 0438 623 438
