SA Best has called an emergency summit on 2 June with builders, industry bodies, timber processors and suppliers to discuss the ramifications of the shortage and develop a blueprint. Source: The Advertiser
International demand for timber, a lack of imported stock and unprecedented housing activity driven by federal and state government stimulus have combined to constrain supply.
SA Best MLC Frank Pangallo was reported in The Advertiser today as saying there were industry fears the crisis could lead to significant job losses and business collapses.
“SA’s critical building sector is about to enter a valley of death situation which will have a catastrophic domino effect,” he 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 laying the 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.
“Already, there is genuine fear many tradies won’t have incomes after July and many businesses will be forced to start shedding jobs by September or October.”
He said there were also “grave concerns” many small to medium-sized businesses would “go bust”.
Master Builders SA told The Advertiser last week that new home customers faced “thousands of dollars” in increased costs if the timber shortage was not fixed.
SA Best said urgent measures were needed to protect the sector, which it said employed more than 65,000 South Australians.
“It’s scandalous that timber logs from local plantations are now being shipped … to India and China because of the high prices suppliers are fetching and demand from Europe and the United States,” Mr Pangallo said.
