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{{propApi.successMessage}} {{region}} Change locationHIA welcomes fuel security move as conflict hits construction costs
HIA welcomes fuel security move as conflict hits construction costs
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HIA Executive Director Tasmania, Benjamin Price, said the escalating conflict involving Iran is already pushing up fuel, freight and material costs.
“This conflict didn’t create our housing shortage, but it could make it harder to fix,” Mr Price said.
“Fuel spikes hit construction immediately, from transport to materials, and flow straight into affordability.”
Mr Price said early warnings of rising costs for polymers, resins, plastics and energy intensive materials such as concrete and steel show why certainty matters. He also warned that higher input costs pose real risks for builders operating on fixed price contracts.
“During the pandemic we saw how unexpected cost increases hit builders locked into fixed price contracts. Many businesses are still recovering, we can’t afford a repeat.
“The Government’s move today aims to give Tasmania better visibility and faster response powers. It’s a practical step in uncertain times.”
With a national target of 1.2 million new homes, Mr Price said avoiding further cost pressures is essential.
“Higher fuel prices affect every builder and tradie on the road. Governments must avoid new taxes or red tape that make building more expensive.”
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