Current at: 03 February 2009
HIA, Australia’s largest building industry association, welcomed the Australian Government’s commitment to boost the supply of new housing for both the public and community housing sector with a $6 billion targeted investment in new dwellings.
HIA Managing Director, Ron Silberberg said the investment will provide a much needed boost that will stimulate construction work on 20,000 new public and social dwellings and create a demand for more than 35,000 jobs in the building and related industries.
According to the Australian Bureau of Statistics and the Housing Industry Association there are more than 25,000 planned dwellings that have obtained development consent, but which have not yet commenced construction.
The benefit of a Commonwealth-approved tender process for the spot purchase of private sector new dwellings will provide a rapid and necessary boost to economic activity. It will activate the commencement of many approved private sector dwellings that have stalled due to a lack of working capital,” said Ron Silberberg.
“By unlocking a number of residential projects in the pipeline there will be a substantial multiplier gain to housing starts and jobs.
“The Government’s recovery plan appropriately spends for jobs in the short-term and invests for future prosperity.
“Because the backlog of residential building projects is spread geographically, the stimulus will generate jobs in cities and towns across the country and help to achieve a desirable social mix in the location of low-income tenants,” said Ron Silberberg.
HIA has also welcomed incentives for home owners and investors to improve the energy efficiency of existing housing stock, an initiative that recognises the contribution the existing housing can make to carbon reduction.
“The housing recovery package recognises the benefits of using the fiscal power of the public sector to tap into the strengths of the highly efficient and effective housing industry, said Ron Silberberg.