Cement Concrete & Aggregates Australia (CCAA) has welcomed the approval of the Melton East Precinct Structure Plan, while warning that Victoria cannot meet its housing ambitions if the cost of supplying essential construction materials continues to rise.
The plan will pave the way for nearly 12,000 homes, seven schools, three arterial roads, 14 intersections, five bridges and other community infrastructure.
CCAA Chief Executive Officer Michael Kilgariff said the announcement demonstrated why secure, affordable and locally available supplies of concrete, cement and aggregates are critical to Victoria’s housing plans.
“You can’t build new suburbs without construction materials,” Mr Kilgariff said.
“An average new home uses around 110 tonnes of aggregate and more than 50 cubic metres of concrete.
Multiply that across almost 12,000 homes, before considering the roads, bridges and schools, and the importance of local construction-material supply is clear.”
The Melton East plan forms part of the Victorian Government’s 10-year greenfields plan to provide capacity for 180,000 new homes over the next decade.
“If we are planning where Victorians will live over the next 20 to 30 years, we also need to plan for where the materials needed to build those communities will come from,” Mr Kilgariff said.
“That means protecting strategically located quarry resources, maintaining a competitive network of large and small operators and creating the conditions for businesses to invest.”
CCAA this week warned that proposed increases to Victorian minerals and extractive-industry fees risk increasing construction-material costs and weakening investment in local production. CCAA’s submission noted Melbourne CPI had risen approximately 32 per cent since the previous fee review, compared with a proposed 234 per cent uplift in fees.
“Victoria cannot pursue ambitious housing targets while making it more expensive to operate the quarries supplying the materials those homes depend on,” Mr Kilgariff said.
“This is particularly important for smaller quarry operators. Rising regulatory and operating costs can reduce competition and local supply, resulting in longer transport distances and higher construction costs.
“Costs imposed at the quarry gate do not stop at the quarry gate. They flow through the construction supply chain to homebuyers, infrastructure budgets and taxpayers.
“The Government is right to unlock land and plan for thousands of new homes in Melbourne’s west. But approving new suburbs is only part of the equation.
“More homes require more construction materials. Housing policy and construction-materials policy need to work together.”