Page 807 - Week 03 - Wednesday, 9 April 2014
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residential builders. It is, however, all too easy simply to forget that the vast majority of businesses in the construction sector are either sole traders or small business enterprises.
Small operators that are able to specialise in their chosen field, such as carpentry, bricklaying, plumbing, electrical, tiling or concreting, just to name a few, have the flexibility to respond to new methods of construction, meet niche demands in the sector and often are the leaders when it comes to implementing innovative, new best practice construction methods, especially in the areas of sustainable building. In many instances the individuals doing the work are the owners of the business. They have a greater sense of pride in the work that they are doing as it is their reputation and livelihood on the line every time they do a job.
All too often it is these small businesses that are the first to suffer when ineffective changes are made to the rules and regulations surrounding planning in the ACT. The changes often impose significant increases to the cost of meeting regulatory requirements and all too often erode the profitability of the business, preventing growth, investment and employment.
To give a simple example, the cost of meeting the regulatory requirements to obtain development and building approval for a minor alteration such as a carport, a small deck or even a pergola now, in some instances, exceeds the cost of the actual building work. This is simply prohibitive for home owners and it is unreasonable to expect them to afford to pay these costs. Simply, what this does is to erode the size of the marketplace in the building sector, reducing opportunities, and in many instances building works go ahead without approval.
I understand, Madam Speaker, that last year there were in excess of 60 locally owned businesses either in or supporting the local construction industry that closed their doors. When you consider the flow-on effects of this, such as the job losses and the impact of unpaid liabilities, the cost of which is left for other businesses to cover, it is evident that the current status quo simply is not sustainable.
The reason that we do not see vast numbers of lobbyists banging on our door about these issues or that there are not any protests in the streets is simply because these operators are too busy trying to earn a living and keep their doors open on a day-to-day basis.
I am a big believer that what gets measured gets done. This inquiry seeks to measure the strengths and weaknesses of the local construction industry. It will measure the impact that over-regulation of the sector has had and it will measure the impact that the ineffective fee structure has had on the local sector. In turn this will allow for improvements to be made that will ensure that the sector grows, employment opportunities exist and that there is confidence in the longevity of the construction sector in the ACT.
I thank Mr Coe for bringing this issue to the Assembly today and I encourage all members to think of the bigger picture when voting on the motion today.
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