A $13.2 billion building and construction stimulus action could stimulate over $30 billion in new economic activity and create more than 100,000 new jobs, according to new economic modelling from Master Builders Australia.
“We are seeking stimulus not subsidies from government, we want National Cabinet to urgently implement this independently modelled stimulus package and establish a special task force to fast track commencement of construction activity,” says Denita Wawn, CEO of Master Builders Australia.
The modelling shows that a $13.2 billion investment by governments proposed stimulus package would mean:
- $30.9 billion in GDP from the $13.2 billion investment
- Creation of 105,500 jobs in construction and across the economy
- $17.6 billion in expanded construction activity (new dwelling starts, renovations and commercial construction activity)
“Building and construction is shaping up to be one of the industries worst hit in the long term by the COVID-19 economic crisis. We know from previous downturns that it takes four times longer for our industry to recover than the rest of the economy,” says Wawn.
“This economic crisis is not the result of a market failure; it is the result of the lockdown imposed by governments in response to the public health emergency of COVID-19. We are asking our political leaders to show the same courage and vision in supporting our industry as they showed in responding to the health emergency,” she says.
“Work for builders and tradies in 2020/21 is fast evaporating and the indications are that 2021/22 will not be much better. There is no time to spare in meeting this threat to the viability of nearly 400,000 building business and the jobs of 1.2 million people employed in our industry.”
“We also want to see a dedicated building and construction industry taskforce established to oversee the implementation of the stimulus action plan. For stimulus to occur building activity needs to commence. Builders and tradies cannot sustain their businesses and jobs on promises.”
“We have seen that governments can fast track construction activity in response to natural disasters and COVID-19 is shaping up as an economic disaster,” says Wawn.
Image: Master Builders Australia