Stimulus Packages will help Building and Construction sector

03 February 2009

The Building Industry will benefit from today’s separate announcements that official interest rates have tumbled one percent and the Rudd Government will be investing in insulation of houses and building of new school facilities, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.

Mr Chris Atkins said, “The dual benefit of having falling interest rates in conjunction with this kind of fiscal stimulus will certainly alleviate some of the pain that is coming for the industry. Tasmania’s prognosis is better that the rest of Australia’s as work in the pipeline is strong for both the residential and commercial markets. The Association still has reservations that commercial projects might be put on hold as business investment dries up, but today’s announcement will definitely help the industry through this uncertainty.”

Mr. Atkins continued, “Residential approvals have remained high and lower interest rates will help boost the market further. Today’s announcement that the Federal Government will install free ceiling insulation in around 2.7 million Australian homes will keep those parts of the industry busy for some time to come. Better than that, the Government will create long-term benefits for the occupants of those homes and save on electricity usage. The Association has been advocating the upgrading of the energy efficiency of existing homes for some time in preference to raising the standard of new homes. Many older homes in Tasmania rate at less than half a star. By introducing ceiling insulation, these homes will achieve around 2 stars, saving the occupants more than 43% of their heating and cooling bills. To achieve the same cost benefit again would require the house to be built at over 6.5 stars. As can be seen, it’s much easier to upgrade existing stock from a poor base than it is to upgrade new stock to a very high level. With only around 1.5% of all housing stock being replaced every year, the key to reducing energy usage quickly lies in strategies such as this one. ”

Mr Atkins concluded, “While the commercial sector appears to be buoyant, we are concerned that a number of projects will either be delayed or not go ahead this year which will cause a loss of jobs in an industry that has just rebuilt itself since the troubled 1990´s. The Government’s announcement that it will boost jobs and invest in Australia’s long term future by building or upgrading buildings in every one of Australia’s 9,540 schools is very welcome by the Association. This initiative also ensures that the money is distributed equally on smaller projects all over the state, allowing everyone involved in the commercial end of the industry to receive some benefit. The dual benefits will be that employment will be maintained and schools will receive the much needed capital upgrade that they require. Furthermore, this announcement will also have long-term implications as it will help to lift the quality of education provided by educational institutions, benefiting all Australians.”

Chris Atkins

Executive Director

For further details contact: Chris Atkins  (03) 6234 3810   Mob. 0438 623 438

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