Brendan Simpkins

A LOCAL business has backed calls for a freight subsidy amid growing delays and a shortage of timber affecting the building industry.

Last week, an emergency timber summit was convened by SA Best MLC Frank Pangallo and attended by industry stakeholders, including Gawler-based GC & J Construction.

The building industry is under pressure, with Australia experiencing a construction boom because of the Federal Government’s HomeBuilder scheme.

Introduced last June, it provided grants of $15,000 or $25,000 to build or substantially renovate a home. Nationwide, more than 121,000 Australians applied for scheme, four times more than
originally predicted.

In South Australia, almost 14,000 applications were received, the nation’s biggest uptake per capita.

This led to Master Builders SA issuing a plea to Croweaters in March, urging for patience. It said the industry was experiencing “unprecedented demand” for new homes, and was struggling due to global shortages of materials such as timber, steel reinforcement and plasterboard.

This was because of COVID-19 trade restrictions and local trade shortages.

GC & J Construction has been hit hard, experiencing delays for timber of up to four months.

Project manager Nathan Shanks said small businesses were at risk of dissolving.

“Big builders tend to have well-developed supply chains,” he said. “Unfortunately, the smaller builders often do not.

“Big, well-known builders are demanding timber suppliers serve them first, leaving smaller builders in an uncertain situation.

“The Master Builders Association (MBA) says there is currently a five-month delay for timber roof trusses.”

The MBA says between 4000 and 5000 jobs in SA and up to 100 small businesses are in jeopardy.

Mr Pangallo said SA was at risk of becoming a “valley of death” without urgent government action to alleviate the building industry.

SA Best, alongside the Labor Party, called on the State Government to provide a transport subsidy with a surplus of timber on Kangaroo Island.

Mr Pangallo said Kangaroo Island Plantation Timber managing director Keith Lamb told the summit there was enough timber on the island to build 10,000 homes.

“SA’s critical building sector is about to enter a valley of death situation which will have a catastrophic domino effect that is expected to be felt across the entire state,” Mr Pangallo said.

“If timber can’t be supplied to build houses, carpenters won’t get paid for putting up the frames, bricklayers won’t get paid for layingthe bricks, electricians won’t get paid for wiring the house, the businesses that supply those tradies won’t get any orders for materials...and so it continues.”

Member for Light Tony Piccolo said he had been told small companies were struggling to obtain supply or were waiting up to eight weeks to secure key materials.

He said the state Labor Party would join calls for a freight subsidy to bring timber to the mainland.

“The Marshall Liberal Government must commit to a freight subsidy to bring timber from Kangaroo Island to the mainland to address a chronic shortage of structural pine used in the construction of houses across South Australia,” Mr Piccolo said.