The Australian Forest Products Association (AFPA) has welcomed the Master Builders Australia’s (MBA) Action Plan released today, which calls for a raft of comprehensive economic stimulus measures from all levels of government to encourage new housing construction.
MBA’s Action Plan supports AFPA’s calls for new housing construction support, following dire forecasts from its members that sawn timber demand will plummet by 50 per cent by year end, risking thousands of jobs in the 45,000 strong softwood timber sector.
According to new economic modelling commissioned by MBA, the $13.2 billion Stimulus Action Plan will stimulate over $30 billion in new economic activity and create more than 100,000 new jobs across Australia’s struggling economy.
AFPA CEO Ross Hampton said, “The Federal Government’s quick action on CoVid-19 has effectively saved the lives of thousands of Australians. But now we need to get the economy going again, and new construction is an extremely effective way to do that. Revitalising new housing construction in the wake of CoVid-19 is a complex problem that needs a large and coordinated policy response by all levels of government to address it.”
“Significant stimulus measures are required to kick-start renewed confidence and housing demand, like MBA’s proposals of new home building grant of up to $40,000, a resilience renovation funding program to make homes resilient to natural disasters, and commercial programs such as a 10% decrease in developer charges and 5% increase in government spending in health, defence and education.”
“A comprehensive stimulus package will help all of Australia recover and we commend MBA for adding its voice to the call for one. The housing construction sector is the engine room for growth and jobs in Australia’s economy, and that includes the timber industry,” Mr Hampton concluded.