Key Facts:
- Cement Concrete & Aggregates Australia (CCAA) and Civil Contractors Federation Victoria (CCF Victoria) are calling for the construction industry and its supply chain to be prioritised under any fuel rationing or allocation measures, amid significant fuel cost pressures.
- The national average retail diesel price reached 284.7 cents per litre in the week ending 4 October, representing an increase of 99.1 cents compared with a year earlier.
- CCAA Chief Executive Officer Michael Kilgariff warned that without secure diesel access, production and transportation of cement, concrete and aggregates would halt, quickly stopping construction activity across Australia.
- CCF Victoria Executive Director Annie Kessell highlighted that fuel supply disruptions could affect costs and schedules on critical infrastructure projects, threatening the delivery of roads, bridges, utilities and housing at a time when Australia faces pressure to increase housing supply.
- CCAA has previously written to the Federal Government and State and Territory leaders calling for the heavy construction materials sector to be formally recognised as essential under fuel prioritisation arrangements.
Cement Concrete & Aggregates Australia (CCAA) and Civil Contractors Federation Victoria (CCF Victoria) are calling for the construction industry and its critical supply chain to be prioritised under any fuel rationing, allocation or tighter supply restrictions introduced in response to ongoing fuel security pressures.
The call comes as construction businesses continue to face significant fuel cost pressures. The national average retail diesel price was 284.7 cents per litre in the week ending 4 October - up 31.8 cents in a month and 99.1 cents compared with a year earlier.
CCAA Chief Executive Officer Michael Kilgariff said high diesel prices and international supply uncertainty reinforced the need for heavy construction materials to be explicitly recognised in any fuel prioritisation framework.
"Cement, concrete and aggregates are the first link in Australia's construction supply chain. If our industry cannot access the diesel needed to produce and transport these materials, construction activity very quickly begins to stop," Mr Kilgariff said.
"Quarries, manufacturing facilities, concrete plants and the heavy vehicles moving materials to construction sites all rely on secure fuel supplies.
"That means any prioritisation of the construction industry must extend right through its supply chain and explicitly include the heavy construction materials sector."
Civil Contractors Federation Victoria Executive Director Annie Kessell said secure access to fuel was critical to keeping major infrastructure projects moving and ensuring the construction industry could continue to deliver the roads, bridges, rail, ports and subdivisional infrastructure communities rely on.
"Civil contractors are on the frontline of delivering the enabling infrastructure that keeps our economy moving and supports the delivery of housing. From roads and bridges to utilities, subdivision works and other essential infrastructure, these projects are the foundation on which new communities and homes are built," Ms Kessell said.
"When fuel supply is constrained, the impacts are felt well beyond the pump. A disruption to the supply of cement, concrete and aggregates can quickly flow through to civil construction projects, affecting costs, schedules and ultimately the delivery of critical infrastructure and new housing.
"At a time when Australia is under pressure to increase housing supply, we cannot afford for fuel shortages to put the infrastructure needed to unlock new homes and communities at risk."
CCAA has previously called for the heavy construction materials sector to be formally recognised as essential under fuel prioritisation arrangements, including in correspondence to the Federal Government and State and Territory leaders.
Mr Kilgariff said fuel security was part of a broader challenge for an industry heavily exposed to diesel prices, with fuel surcharges and other cost relief for businesses delivering fixed-price public infrastructure contracts remaining a live issue.
"Every road, bridge, home, rail project and energy project depends on a reliable supply of construction materials," Mr Kilgariff said.
"You cannot keep those projects moving if cement, concrete and aggregates cannot be produced and delivered where they are needed.
"Priority access to fuel for heavy construction materials is therefore not simply about protecting our industry. It is about maintaining the supply of the essential materials Australia needs to keep building."
About us:
About CCAA CCAA is the voice of Australia's heavy construction materials industry, an industry that contributes $3.17 billion to Gross State Product in Victoria and supports 15,637 jobs. CCAA members produce most of Australia's cement, concrete and aggregates, which are essential to the nation's building and construction sectors.
CCF Victoria is the peak representative body for Victoria's civil construction industry, representing businesses across civil construction, land development, infrastructure and materials. The sector is a major contributor to Victoria's economy, generating approximately $22 billion in state tax revenue and playing a critical role in design, construction and maintenance of enabling infrastructure, communities and essential services that support the state's growth.
