POLICY

from Master Builders Victoria October-December 2022

FIRECRUNCH

Building a brighter future

Diana Dajcman Policy Advisor

The Master Builders Victoria (MBV) policy team would like to highlight the key commitments in which we are seeking support from the Victorian Government on behalf of the building and construction industry.

MBV is a trusted government advisor, and we pride ourselves on our commitment to maintaining relationships with key stakeholders in our industry.

Our key commitments drawn from the state election platform will shape our budget asks for 2023-24.

Skills Shortages in Building and Construction

Skills shortages are an ongoing concern for the industry.

To secure skills for the future, our industry requires commitments to support skilled migration, apprenticeships, flexible pathways into the building and construction industry and greater recognition and rewards for schools for supporting VET.

We are also continuing to advocate for the following to support the building and construction industry:

• Support for an ANZSCO review to ensure that all building and construction occupations are understood and accounted for

• Specific investment in teacher training for enterprise and industry

RTOs

• Further and ongoing solid financial support for apprenticeship commencements and completions to ensure the pipeline of skilled trades in building and construction is supported post COVID-19

• Further support and research to identify and fund flexible pathways in the building and construction industry

• Schools to be recognised for the number of students who take up an apprenticeship and complete a

VCAL/VCE Vocational Major or ATAR pathway, not just university pathways

Gender Equity - Women in Construction

To increase the diversity, equity, and inclusion of women in building and construction, MBV asks for a $20 million investment over three years to be provided to the BICC.

This investment will implement the actions in the BICC work plan that will underpin the Building Equality Strategy 2023-31.

This, paired with the ongoing investment of $1.8 million, will fund the 10 fixedterm roles created to support the implementation of the building equality policy.

This funding will ensure the following:

• A sector review to evaluate the areas of change needed in building and construction to encourage and support diversity in our industry

• An awareness program to support and encourage the building and construction industry to adopt changes identified in the review

• Support and guidance to assist teachers, parents, and the broader community in understanding the benefits of a career in building and construction

• Funding of industry programs that lead to tangible employment outcomes

• Financing for the Building Equality

Policy implementation, compliance and monitoring

Ensuring the Pipeline of Building and Construction Work

Supply shortages have been a critical issue impacting our industry’s ability to

deliver anything from apartments to residential housing and other key infrastructure.

MBV continues to advocate for commitments to strengthen supply chains and reduce insolvencies, business exits, and contractual relief.

We are asking the Government to commit to the following:

• Recommendations from the Supply

Chain Review Report immediately relieve pressure on the building and construction industry for the medium and long term.

• These recommendations include solutions such as:

» investment in softwood timber plantations

» more and enhanced local manufacturing

» research and development into alternative building products • Cost escalation (rise and fall clauses) is to be used for Victorian state projects, similar to agreements by the Irish, WA and SA governments, and in domestic building contracts, so builders are not left to hold all the risk because of price increases.

This will ensure business confidence during a time of volatile market conditions

• Reduced validity periods for project tendering to reflect volatile market conditions

• Fairer sharing of risk in contracts

• Better planning delivery and longterm investment into building and infrastructure to ensure business

• A review of the Domestic Building

Contracts Act (1995) as building stages payments outlined no longer reflect current building practices

• Discussions with banks to facilitate the use of cost escalation clauses

Housing Affordability

Housing affordability remains a key policy priority for MBV.

For housing affordability to become a reality, we are seeking a reduction of the taxation burden on housing, more significant urban densification and land supply, improved planning delivery and the development of more social housing.

We will continue to advocate for the Victorian Government to commit to the following:

• The elimination of stamp duty tax in a long-term taxation plan, to be replaced with a broad-based land tax

• Take proactive steps to activate land by requesting the VPA to urgently lead, develop and deliver a pipeline of state-led releases across Victoria with an initial focus in the Wodonga, Geelong, Ballarat and Bendigo areas

• Ensuring released land is appropriately subdivided to ensure that energy efficiencies and savings can be maximised in designing homes

• Incentivise the development of highdensity residential buildings such as apartments, secondary dwellings and duplexes for local governments

• Set targets for local government to provide greater supply options and to be rewarded for good performance

• Greater expansion to fast-track planning approvals for noncontentious developments such as secondary dwellings and subdivisions

• Funding for local government to expedite the digitisation of planning controls so that designers and planners can work with a codified planning system

• Development of a long-term strategy to deliver social housing to support our community’s needs. Opening this tender process will demonstrate greater certainty for our industry in securing a pipeline of work to keep our economy moving forward

• A collaborative relationship between government and industry in the delivery of social and affordable housing to avoid potential bottlenecks

Futureproofing the Industry

MBV remains committed to building a better future.

Applying circular economy principles for building and construction is critical to reducing the environmental impact and process inefficiencies as a resourceintensive industry.

The Victorian Government can support this by investing in the following:

• A compulsory product certification be developed to help our industry in making informed decisions in the design phase and ensuring product compliance, environmental impacts, embodied energy, and the reuse of » Training across the industry - architects, designers, specifiers, and builders

» Establishing a complete and local network of waste transfer and recycling facilities

» Developing markets for recycled and repurposed materials

» Tracking of materials to eliminate counterfeits and product substitution

Minister for Building and Infrastructure

The building and construction industry is integral to our state’s tax revenue and has the largest economic multiplier effect.

We seek the appointment of a dedicated Building and Infrastructure Minister to oversee our industry and drive strategy and change for the benefit of all Victorians.

Having a dedicated Minister would demonstrate the size and importance of our sector in the political landscape.

As a leading industry voice, we thank all our members who have participated in our surveys to help shape our advocacy.

MBV is proud to represent its members, and we cannot continue to do the necessary work without your input.

If you would ever like to be more involved in our advocacy work - join our sector committees, webinars and forums or contact the Policy team at policy@mbav.com.au