Cement Concrete & Aggregates Australia (CCAA) has welcomed the Senate Select Committee on Productivity in Australia’s Interim Report – Housing, saying its recommendations reinforce the need to remove regulatory handbrakes holding back innovation and construction productivity.
The Committee has recommended rigorous cost-benefit analysis of National Construction Code (NCC) changes and simpler compliance pathways to encourage innovation and Modern Methods of Construction.
CCAA Chief Executive Officer Michael Kilgariff said reform must also fix the interaction between the NCC and Australian Standards, where dated references can require industry to continue using superseded standards even when newer, more technically robust versions are available.
“Outdated regulatory references can become a handbrake on innovation, preventing industry from adopting improved standards and better construction methods,” Mr Kilgariff said.
“The Committee’s call for rigorous cost-benefit analysis also strongly aligns with reforms CCAA has been advocating.
“Every proposed regulatory change should be tested against what it means for build times, construction costs and compliance costs.
“Australia needs a performance-based construction system that maintains safety and quality while giving industry the flexibility to innovate and improve productivity.”
CCAA’s February submission on the NCC specifically called for proposed NCC changes to quantify impacts on build times, build costs and regulatory compliance costs wherever practicable.
Mr Kilgariff said regulatory reform must also recognise that increasing housing supply depends on reliable access to the cement, concrete and aggregates needed to build homes and supporting infrastructure.
“Every new home needs concrete and aggregates, as do the roads, schools, hospitals and utilities that support growing communities,” Mr Kilgariff said.
“Planning and approvals reform must ensure strategically located quarries and other essential construction-material operations can be approved, expanded and brought online efficiently.
“Heavy construction materials cannot simply be switched on overnight. Developing new quarries, concrete plants and cement manufacturing capacity requires years of planning, investment and regulatory approvals.”
“There is little benefit in accelerating housing approvals if access to the materials needed to build those homes becomes the next bottleneck.”
Australia’s cement, concrete and aggregates industry contributes $20.7 billion to national GDP and supports 112,970 jobs, demonstrating the economic significance of an industry at the foundation of the nation’s construction economy.
“If Australia is serious about building more homes sooner and at lower cost, we need to remove regulatory handbrakes on innovation and secure the essential materials that build Australia,” Mr Kilgariff said.