Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, we have really been trying to break down the
budget this morning. And some good news for first home buyers.
The colp's Homegrown grant scheme extended for another year. Fifty
thousand dollar grants for the first time buyers to buy
or build and thirty thousand for people wanting to buy
another home will continue until the end of September twenty
(00:20):
twenty six. Now the Treasurer Bill Yan made that announcement
as I understand it, the Master Builders NTY and NTY
Chamber of Commerce Treasurer's budget luncheon yesterday, following on from
the handing down of the of the budget and joining
us in the studio, Master Builders NTIES Vice President Jim Dy,
(00:41):
Good morning to you.
Speaker 2 (00:42):
Jim morning Katie. How are you Yeah?
Speaker 1 (00:43):
Good, really good to have you on the show. Now
talk us through how you know how welcome this news
is from the government.
Speaker 2 (00:52):
It's going to be very good for the community overall.
I think there was a significant increase in the application
rate for the houses to approximately forty eight percent. Part
of that was some deferrals from the potential change of
government and when the CEL people put that forward originally.
Now that's been really really well acknowledged by our industry,
(01:16):
particularly residential side. To have it now extended to September
just gives a whole industry at surety going forward to
ensure that those contra housing contractors have built their cruise
back up again, haven't had work in the last couple
of years, can now have surety going forward. The September mark.
(01:37):
I'd like to revisit that again in that time, but
it's also up to the government's money. It's available, I
believe the Treasurer said yes, that's spent in excess of
seven million towards those grants, which is a significant amount
of money. That funding will not only just help build houses,
but also increases population, which is something else that is
(01:59):
a key factor to economic growth.
Speaker 1 (02:01):
It's sort of got a multiplier effect, I suppose in
a lot of ways, doesn't it. Because you know, somebody
making the decision to you know, to build a home
or to get into a home wanting to buy another one,
that's not the only sort of you know, that's not
the only person that's benefiting. It's benefiting the building industry.
It's benefiting you know, those suppliers, absolutely everybody in the industry.
Speaker 2 (02:21):
I would imagine yeah, So the multiplying factor is approximately
one point seven. Is the very ten dollars spending in
the constructions you seventeen dollars generated everywhere else throughout the economy.
So supporting the infrastructure is a very good outcome from
the Selpie government.
Speaker 1 (02:38):
Now I know you said that, well, I think you
said a figure of forty eight percent. So those building
approvals up forty eight percent? Is that correct? Yes? I
believe so, yess, yeah, I mean that seems like quite
a lot that is over the year to march. Do
you attribute that to those grants?
Speaker 2 (02:55):
That's the significant part. I also believe that there's some
confidence going forward about land availability. Another key part of
the infrastructure budget was infrastructure spend for Holtz and kill Gareth.
It's another area but I can't call that. But what
that will do is provide a viable land for developers
(03:16):
to create home lots and continue it on. So it's
a two fold approach. I believe money to the homeowners
to buy and sadly, the construction costs are higher than
we would all like them to be, even though being
in the construction industry, we'd all like to see the
construction costs lower. We'd have more turnover, but that grant
(03:38):
gives those homeowners the opportunity would not otherwise got into
the market. And secondly to provide infrastructure and then potential
developments to put the houses on, keeps people in the
territory as well. Grows our population.
Speaker 1 (03:53):
And that's what we all want, right like everybody that's here,
we're here for the long haul, or most of us.
We want the population to grow. We want the place
to be thriving, and you know, really having a strong
construction industry is a huge part of that. How are
things going more generally from your perspective at this point.
Speaker 2 (04:10):
I think overall the construction industry, there's sort of two
sectors of the commercial sector in the residential sector, so
the grants is the residential sector. The commercial side of
things has been supported by defense, which is not really
part of the budget, but defense and then just general
(04:31):
consumer confidence. I think that with the federal election and
now this budget of ours, things will settle down a
little bit. The private sector will know where the anti
government is going, where the money is being spent, and
with some luck, will start to invest themselves in the
private sector. We do need more residential apartments built. That's
(04:54):
something that may be impacted by this budget general general
spending th from the infrastructure, the government was spending approximately
two billion on civil infrastructure, which was our major road
networks and infrastructure which we all know needs needs upgrading
and maintaining. Without that, we don't connect and we don't communicate.
(05:15):
I believe a lot of that funding was previous agreements
that you knowment the government as a whole has to
carry over. There was approximately two point three billion towards
other infrastructure, spending Around eight hundred million of that was
towards housing, large proportion communities, but still a lot of
(05:35):
money is to be committed to the major centers, and
then obviously, as the previous interview, money towards health. The
biggest spend other than the housing was towards public safety
and order order, and we are as the master builders,
(05:58):
we're looking forward to see exactly how that will be spent.
I think that the way the current government's intending to
spend that money is to spread it further and further
and wider, smaller amounts too much more projects obviously have
their agenda lifestyle, law and order and so on. I
(06:23):
think that might be beneficial to out the Master Builders
members and probably the community is a much wider community.
You know, you have ten builders doing twenty jobs. It
spreads the load to smaller subcontractors, more suppliers, more homes,
more families, more kids. It gets back to the grassroots.
(06:45):
And so I think that's what the budget will inject
into industry.
Speaker 1 (06:51):
And hopefully be a positive thing. One of the other
things that has been discussed abish over the last couple
of days, and certainly the Treasurer had touched on this
in his speech yesterday and this morning when we'd interviewed him,
is the cost blowouts on some of those major projects.
I guess it's difficult in some ways because we've seen
the cost of various supplies go up astronomically. I mean
(07:12):
you touched on this before. The amount that it costs
to build a home ten years ago is very different
to what it is now. Do you think there should
sort of be I don't know, like maybe some tightening
in terms of the scoping of works when the government
sort of sees they're going to be doing a project
and then they I don't know how quickly after they
go out to tender, but when we're seeing some of
(07:33):
these huge cost blowouts. Is there ways that it could
maybe just be managed differently so that then you know
that's not happening.
Speaker 2 (07:41):
So the industry's been through a very difficult time and
I know that COVID's a long way, long way back.
But as the world is, a price goes up, a
price days you don't see it going down.
Speaker 1 (07:54):
Oh Unfortunately, we all wish at the moment.
Speaker 2 (07:57):
And we have, you know, some resource issues. Skills is
one thing, and then the resources to support those skills.
So as a commercial commercial billder myself and not involved
with those larger projects, I feel for both the anti
government and the contractors involved. It's very hard to put
(08:18):
a cap on the costs. We're all sharing the same
resources at the moment, and the government, I know firsthand,
works very very hard to come up with the initial budget.
I know they do their very best, but the true
budget is the commercial. When you go out to market
(08:39):
and you get priced subcontractors, you think something's worth ten
dollars and it was and it was last week, it
is now worth.
Speaker 1 (08:46):
Goes up in an astronomical amount. Busy man, Jim, everyone's
trying to get ahold of you.
Speaker 2 (08:52):
On you so I think the way forward for the government. Now,
I'm going to trust that the the cost escalations as
plataud we're finding materials are leveling out. I believe that
we definitely need our population to grow to support support
the construction industry, but also the training. Know, the government's
(09:15):
budget also put money towards training. It offered a significant
saving for payroll tax for those medium sized builders and
that will be of a great benefit. Part of that
was a concession for apprentices. So all of you out
there today, you know, please employ more apprentices that they're
our future. Without our future, our cost is going to
(09:37):
go up. Honestly, that's the only way I can see it.
Speaker 1 (09:41):
So well, Jim, it's been really good to catch up
with you this morning. I appreciate you joining me in
the studio and talking us through you know, that budget
from Master Builders perspective Master Builders and to Vice President
Jim Edie, thank you so much for your time this morning.
Thank you, Katie, thank you
Well, we have really been trying to break down the
budget this morning. And some good news for first home buyers.
The colp's Homegrown grant scheme extended for another year. Fifty
thousand dollar grants for the first time buyers to buy
or build and thirty thousand for people wanting to buy
another home will continue until the end of September twenty
(00:20):
twenty six. Now the Treasurer Bill Yan made that announcement
as I understand it, the Master Builders NTY and NTY
Chamber of Commerce Treasurer's budget luncheon yesterday, following on from
the handing down of the of the budget and joining
us in the studio, Master Builders NTIES Vice President Jim Dy,
(00:41):
Good morning to you.
Speaker 2 (00:42):
Jim morning Katie. How are you Yeah?
Speaker 1 (00:43):
Good, really good to have you on the show. Now
talk us through how you know how welcome this news
is from the government.
Speaker 2 (00:52):
It's going to be very good for the community overall.
I think there was a significant increase in the application
rate for the houses to approximately forty eight percent. Part
of that was some deferrals from the potential change of
government and when the CEL people put that forward originally.
Now that's been really really well acknowledged by our industry,
(01:16):
particularly residential side. To have it now extended to September
just gives a whole industry at surety going forward to
ensure that those contra housing contractors have built their cruise
back up again, haven't had work in the last couple
of years, can now have surety going forward. The September mark.
(01:37):
I'd like to revisit that again in that time, but
it's also up to the government's money. It's available, I
believe the Treasurer said yes, that's spent in excess of
seven million towards those grants, which is a significant amount
of money. That funding will not only just help build houses,
but also increases population, which is something else that is
(01:59):
a key factor to economic growth.
Speaker 1 (02:01):
It's sort of got a multiplier effect, I suppose in
a lot of ways, doesn't it. Because you know, somebody
making the decision to you know, to build a home
or to get into a home wanting to buy another one,
that's not the only sort of you know, that's not
the only person that's benefiting. It's benefiting the building industry.
It's benefiting you know, those suppliers, absolutely everybody in the industry.
Speaker 2 (02:21):
I would imagine yeah, So the multiplying factor is approximately
one point seven. Is the very ten dollars spending in
the constructions you seventeen dollars generated everywhere else throughout the economy.
So supporting the infrastructure is a very good outcome from
the Selpie government.
Speaker 1 (02:38):
Now I know you said that, well, I think you
said a figure of forty eight percent. So those building
approvals up forty eight percent? Is that correct? Yes? I
believe so, yess, yeah, I mean that seems like quite
a lot that is over the year to march. Do
you attribute that to those grants?
Speaker 2 (02:55):
That's the significant part. I also believe that there's some
confidence going forward about land availability. Another key part of
the infrastructure budget was infrastructure spend for Holtz and kill Gareth.
It's another area but I can't call that. But what
that will do is provide a viable land for developers
(03:16):
to create home lots and continue it on. So it's
a two fold approach. I believe money to the homeowners
to buy and sadly, the construction costs are higher than
we would all like them to be, even though being
in the construction industry, we'd all like to see the
construction costs lower. We'd have more turnover, but that grant
(03:38):
gives those homeowners the opportunity would not otherwise got into
the market. And secondly to provide infrastructure and then potential
developments to put the houses on, keeps people in the
territory as well. Grows our population.
Speaker 1 (03:53):
And that's what we all want, right like everybody that's here,
we're here for the long haul, or most of us.
We want the population to grow. We want the place
to be thriving, and you know, really having a strong
construction industry is a huge part of that. How are
things going more generally from your perspective at this point.
Speaker 2 (04:10):
I think overall the construction industry, there's sort of two
sectors of the commercial sector in the residential sector, so
the grants is the residential sector. The commercial side of
things has been supported by defense, which is not really
part of the budget, but defense and then just general
(04:31):
consumer confidence. I think that with the federal election and
now this budget of ours, things will settle down a
little bit. The private sector will know where the anti
government is going, where the money is being spent, and
with some luck, will start to invest themselves in the
private sector. We do need more residential apartments built. That's
(04:54):
something that may be impacted by this budget general general
spending th from the infrastructure, the government was spending approximately
two billion on civil infrastructure, which was our major road
networks and infrastructure which we all know needs needs upgrading
and maintaining. Without that, we don't connect and we don't communicate.
(05:15):
I believe a lot of that funding was previous agreements
that you knowment the government as a whole has to
carry over. There was approximately two point three billion towards
other infrastructure, spending Around eight hundred million of that was
towards housing, large proportion communities, but still a lot of
(05:35):
money is to be committed to the major centers, and
then obviously, as the previous interview, money towards health. The
biggest spend other than the housing was towards public safety
and order order, and we are as the master builders,
(05:58):
we're looking forward to see exactly how that will be spent.
I think that the way the current government's intending to
spend that money is to spread it further and further
and wider, smaller amounts too much more projects obviously have
their agenda lifestyle, law and order and so on. I
(06:23):
think that might be beneficial to out the Master Builders
members and probably the community is a much wider community.
You know, you have ten builders doing twenty jobs. It
spreads the load to smaller subcontractors, more suppliers, more homes,
more families, more kids. It gets back to the grassroots.
(06:45):
And so I think that's what the budget will inject
into industry.
Speaker 1 (06:51):
And hopefully be a positive thing. One of the other
things that has been discussed abish over the last couple
of days, and certainly the Treasurer had touched on this
in his speech yesterday and this morning when we'd interviewed him,
is the cost blowouts on some of those major projects.
I guess it's difficult in some ways because we've seen
the cost of various supplies go up astronomically. I mean
(07:12):
you touched on this before. The amount that it costs
to build a home ten years ago is very different
to what it is now. Do you think there should
sort of be I don't know, like maybe some tightening
in terms of the scoping of works when the government
sort of sees they're going to be doing a project
and then they I don't know how quickly after they
go out to tender, but when we're seeing some of
(07:33):
these huge cost blowouts. Is there ways that it could
maybe just be managed differently so that then you know
that's not happening.
Speaker 2 (07:41):
So the industry's been through a very difficult time and
I know that COVID's a long way, long way back.
But as the world is, a price goes up, a
price days you don't see it going down.
Speaker 1 (07:54):
Oh Unfortunately, we all wish at the moment.
Speaker 2 (07:57):
And we have, you know, some resource issues. Skills is
one thing, and then the resources to support those skills.
So as a commercial commercial billder myself and not involved
with those larger projects, I feel for both the anti
government and the contractors involved. It's very hard to put
(08:18):
a cap on the costs. We're all sharing the same
resources at the moment, and the government, I know firsthand,
works very very hard to come up with the initial budget.
I know they do their very best, but the true
budget is the commercial. When you go out to market
(08:39):
and you get priced subcontractors, you think something's worth ten
dollars and it was and it was last week, it
is now worth.
Speaker 1 (08:46):
Goes up in an astronomical amount. Busy man, Jim, everyone's
trying to get ahold of you.
Speaker 2 (08:52):
On you so I think the way forward for the government. Now,
I'm going to trust that the the cost escalations as
plataud we're finding materials are leveling out. I believe that
we definitely need our population to grow to support support
the construction industry, but also the training. Know, the government's
(09:15):
budget also put money towards training. It offered a significant
saving for payroll tax for those medium sized builders and
that will be of a great benefit. Part of that
was a concession for apprentices. So all of you out
there today, you know, please employ more apprentices that they're
our future. Without our future, our cost is going to
(09:37):
go up. Honestly, that's the only way I can see it.
Speaker 1 (09:41):
So well, Jim, it's been really good to catch up
with you this morning. I appreciate you joining me in
the studio and talking us through you know, that budget
from Master Builders perspective Master Builders and to Vice President
Jim Edie, thank you so much for your time this morning.
Thank you, Katie, thank you
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