COMMITTEE ROUND-UP

Victories and struggles in grappling with the pandemic

Kevin Hoang Policy Advisor

It should be no surprise that the central focus of the sector committees recently has been on the effects of the COVID-19 pandemic, which continue to loom over the industry despite victories in keeping it open for business. It’s meant that the latest committee discussions have been mostly about what role Master Builders Victoria, as an industry body, should have in addressing it. A main worry among the sector committees is the effect the pandemic is having on business productivity. Commercial sites have been obviously affected, with the General Contracting and Specialist Contractor sector committees pointing out the difficulties in implementing social distancing measures while remaining productive, and the potential effect the pandemic has on contractual obligations. On the domestic front, members of the Housing sector committee highlighted the decline in enquiries and display-home traffic amid the economic uncertainty and social distancing restrictions. While cashflow remained mostly stable, committee members noted the reduction in enquiries will translate into a large reduction in building activity in the latter half of 2020 unless significant stimulus measures are undertaken. These issues were further compounded by the increasing difficulty in accessing finance to commence

building projects. Members of the Country sector committee were especially vocal about this, explaining while these issues existed before COVID-19, it has worsened considerably. Master Builders Victoria continues to have conversations with the banks and regulators as it relates to this space. Despite these difficulties, the sector committees emphasised the industry’s commitment and ability to address COVID-19 and were receptive toward the governments’ proposed stimulus measures. They view the industry guidelines for COVID-19 as exemplary of the industry’s ability to put in place stringent social-distancing measures that would mitigate the spread of the virus on building and construction sites. In particular, the sector committees commended Master Builders for providing ongoing communication to members so they remain abreast of new policy announcements, and its ongoing conversations with government. Proposals such as the need for shovel-ready projects to support the industry by the newly created Building Victoria’s Recovery Taskforce, were viewed as vital

in reigniting the Victorian economy. The taskforce’s co-chair, Roger Teale, attended several committee meetings to provide an overview of the taskforce’s work and to seek feedback from committee members. Furthermore, the introduction of the HomeBuilder grant was a welcome move to cushion the forecasted slowdown in the residential market. The potential The committees view the industry guidelines for COVID-19 as exemplary “ of the industry’s ability to put in place stringent social-distancing measures that mitigate the spread of the virus on building and construction sites.”

effect that HomeBuilder will have in stimulating the market is high, with the number of expressions of interest for the HomeBuilder grant in the state surpassing 10,000. Other than COVID-19, other pertinent issues, like the negotiations for new enterprise agreements for the commercial sector, remain a key area of focus for the General Contracting and Specialist Contractor sector committees. On behalf of its members, Master Builders Victoria has been a key figure in these discussions which included the union and tier-one construction companies. The sector committees also discussed the Master Builders submission on the Victorian government’s planned introduction of mandatory trades registration and employee licensing. In this submission, MBV continued to reiterate its commitment for mandatory trades registration for subcontractors while remaining opposed to the introduction of an untested, and potentially expensive, employee licensing scheme. The sector committees remain steadfast in their commitment to have the industry remain open by working together to quickly adapt and implement measures to mitigate the spread of COVID-19. This has been very effective and is reflected in the relatively low numbers of COVID-19 cases on building and construction sites to date. In these difficult times, the sector committees will continue to meet regularly (online of course) throughout 2020 to ensure the industry remains resilient and open.