Devine Property has asked Matthew Pollock to contribute thoughts and suggestions on how the building industry can contribute to the future prosperity of our state. Matthew’s response follows.
A THRIVING property market – just like the building and construction industry – is both an indicator and driver of the economy.
Certainty, people with jobs and money to buy and rent homes, rising house prices, population growth, investor interest and development were all features of our pre-COVID economy, something we want to maintain.
But in these times, as together we rebuild Tasmania, Master Builders wants home buyers and the real estate industry to know our association is also supporting them when we go in to bat each day for our members.
Because, the economic ripple effect from our industry is strong. Residential and commercial building offers one of the highest available economic multiplier effects for government stimulus and investment.
For every $1 million in residential building output there are nine jobs supported in the wider economy, generating $2.9 million in economic activity, research shows.
And as we know, history has taught us if our industry gets put to sleep by an economic downturn it takes much longer than other sectors to wake back up, ultimately costing the community on a wide front.
We need to maintain capacity in Tasmania’s construction industry not only to speed up recovery, but to be able to seize investment and development opportunities as soon as they present.
That is why Tuesday’s federal budget is so important – as is next month’s Tasmanian budget.
We are asking governments to back the building industry to lead Tasmania through the recovery we need.
They have done an exceptional job making tough decisions looking after our health.
What we want to see now is an equally brave commitment to keeping our economy going.
- Extending for 12 months HomeBuilder incentives to support new housing construction, vital to an extended recovery.
- Payroll tax rebates to keep more people in work, and able to meet living expenses. Now is not the time to be taxing jobs.
- A state government commitment to bring forward $1.8 billion of infrastructure projects to underpin our recovery.
- Regulatory and policy reforms, like the New Major Project legislations, showing investors Tasmania is open for business.
A strong property sector is a cornerstone of the Tasmanian economy.
Master Builders is working to keep it that way.
We have an opportunity to not only build our way out of this situation, but to also build a fairer and more prosperous economy at the same time.