CCAA cautiously welcomes the first Albanese Government Budget but warns that many key challenges have not been addressed.
Despite some encouraging news in the Federal Budget around housing and infrastructure support, our Construction Materials Industry continues to face challenges around skilled labour shortages and rapidly escalating energy and input costs which are cause for serious concern. The Budget measures on migration and energy supply are a good start but more must be done to ease these pressures.
“Our Industry is facing a challenging market environment, particularly along the East Coast, with ongoing wet weather causing delays in project deliveries and skilled worker shortages combining with rapidly escalating energy and input costs. Budget measures that free up supply, stimulate market demand and manage costs are welcome but more will need to be done to support a strong and resilient Australian economy over the coming months and years” CCAA Chief Executive Officer Ken Slattery said.
CCAA is pleased to see the 2022/23 Budget includes measures to tackle affordable Housing Supply, with the establishment of a national Housing Accord to facilitate the building of one million new houses within the next decade. CCAA also welcomes the news that the construction industry will be invited to participate in the Accord, although confirmation that the initiatives will not kick off until 2024 due to current shortages in building materials and skilled labour is an acknowledgement of the key challenges faced by our industry and the broader economy.
The Government reconfirming a commitment to $120 billion investment in transport infrastructure over the next 10 years is also encouraging, given the vital role major infrastructure spend plays in supporting a strong and resilient Australian economy. However, news that $6.5 billion of funding within existing projects will be re-profiled to reduce pressure on an overheated construction market speaks volumes to the challenging market conditions that our industry continues to face across major Australian capital cities.