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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.”
The surge of close to 10 million Australians now living in regional areas has exposed deep and growing cracks in the nation’s housing system, highlighting the urgent need for a dedicated national housing plan that works for regional Australia, according to Housing Industry Association (HIA) Chief Executive – Industry Policy, Simon Croft.
As we head into the Easter break this year, it is deeply unfortunate that I am writing to you as our industry faces yet another challenging and uncertain time with significant business disruption being faced arising from the conflict in the Middle East.
With Easter coming up it is time for an update on fuel price related cost increases, the proposed minimum financial requirements, and also some enforcement activity by WorkSafe.
Tasmania can deliver both the Macquarie Point Stadium and the homes the community urgently needs, but only if government adopts a clear and coordinated construction workforce strategy, according to the Housing Industry Association (HIA).