MBA’s Stimulus Proposal to Create 1,890 Construction Jobs
Newly-released modelling by EY indicates that Master Builders ACT’s proposed package of stimulus for the building and construction industry would create 1,890 jobs across the ACT labour market.
Master Builders ACT CEO Michael Hopkins said, “At the start of this year, 18,600 workers in the ACT relied directly on construction for their employment. Latest ABS employment data indicates that about 1,500 of these jobs have been lost since the beginning of the COVID-19 crisis.”
Mr Hopkins said, “Under a worst-case scenario, the MBA estimates that the construction job losses in the ACT could be as high as 7,200 in the aftermath of COVID-19.”
“Urgent action from the ACT Government is required to support employment in the Territory’s second largest private sector industry,” he said.
Mr Hopkins said, “The MBA made a comprehensive submission to the ACT Government on 14 May with sixteen suggestions of how to support the ACT economy and create jobs in the construction industry.
“The centrepiece of this submission is a $40,000 New Home Grant which would help stimulate demand for new residential construction,” he said.
Mr Hopkins said, “Evidence in the post GFC environment shows that similar measures create demand for new housing construction and provide substantial economic benefit for the whole economy.”
“The Australian Bureau of Statistics reports that for every $1 invested in new housing construction, $3 of activity is created for the broader economy. To rebuild the Australian economy, following the COVID-19 pandemic, it’s vital that necessary investments within the industry are made now by the ACT Government,” he said.
Modelling undertaken by EY shows the MBA proposals, including the New Home Grant, a renovations program, a cladding rectification fund, reduction in development taxes, and increase in institutional spending, would have major benefits for the ACT economy. These include:
- The creation of 1,890 jobs right across the ACT labour market
- A lift to ACT’s economy valued at $660 million
- An expansion in construction activity worth $479.8 million
- An additional 493 new homes being built across the territory
- Vital support for construction businesses in the ACT – most of which are small and family owned
Mr Hopkins said, “ABS data released last week showed job losses in the ACT construction industry since 14 March at 8.0%, the highest of any jurisdiction in Australia. The time for the ACT Government to support the local construction industry is now.”
“Now is the time for the ACT Government to use taxes collected from the property and construction sector, which account for around half of all taxes raised by the ACT Government, to support local small and family building and construction businesses”, he said.