4 years ago
CONSTRUCTION PLUMMETS
BRENDAN O’CONNOR MP
The construction industry has faced another steep decline as the impacts of COVID-19 start to significantly hit some of Australia’s key industries.
The Australian Industry Group Performance of Construction Index (PCI), registered the weakest performance in the construction industry in 15 years, dropping 16.3 points to 21.6 in April. This is the largest month-to-month fall in the index’s history.
The concerning figures are clearly a result of restrictions in relation to COVID-19, including cancelled projects, sharp falls in employment and new orders. Apartment building and house building fell further into negative territory.
It must be noted however that these figures highlight the 20th consecutive month of contraction, pointing to the fact the economy was floundering under the Morrison Liberal Government well before the onset of COVID-19.
Problems in the building industry remain, including cracking apartments, increases in professional indemnity insurance, the use of combustible cladding, and growing cases of phoenixing, all of which are threatening a downturn in the sector along with public safety.
Many construction workers are employed as casuals or through labour hire companies and move between employers, and will miss out on the JobKeeper package. The recovery will be even harder if these workers lose their connection with this vital industry.
Hundreds of thousands of job losses could be prevented if the Treasurer simply used his powers to include more workers in the JobKeeper program that he has excluded, which he could do with the stroke of his pen.
The construction industry is national and is critical to the Australian economy, and the government must manage challenges it faces now and in the future.
The Australian Industry Group Performance of Construction Index (PCI), registered the weakest performance in the construction industry in 15 years, dropping 16.3 points to 21.6 in April. This is the largest month-to-month fall in the index’s history.
The concerning figures are clearly a result of restrictions in relation to COVID-19, including cancelled projects, sharp falls in employment and new orders. Apartment building and house building fell further into negative territory.
It must be noted however that these figures highlight the 20th consecutive month of contraction, pointing to the fact the economy was floundering under the Morrison Liberal Government well before the onset of COVID-19.
Problems in the building industry remain, including cracking apartments, increases in professional indemnity insurance, the use of combustible cladding, and growing cases of phoenixing, all of which are threatening a downturn in the sector along with public safety.
Many construction workers are employed as casuals or through labour hire companies and move between employers, and will miss out on the JobKeeper package. The recovery will be even harder if these workers lose their connection with this vital industry.
Hundreds of thousands of job losses could be prevented if the Treasurer simply used his powers to include more workers in the JobKeeper program that he has excluded, which he could do with the stroke of his pen.
The construction industry is national and is critical to the Australian economy, and the government must manage challenges it faces now and in the future.