HomeBuilder Program

The Hon. D.G.E. HOOD (14:41): My question is to the Treasurer. Can the Treasurer update the house on any industry concerns about its ability to meet the overwhelming demand for residential construction as a result of the success of the HomeBuilder scheme?

The Hon. R.I. LUCAS (Treasurer) (14:41): I think, as the honourable member would know, and I suspect most honourable members who are taking constituent inquiries will know, the HomeBuilder scheme, together with the state government $15,000 First Home Owner Grant, has led to the residential housing industry sector in South Australia going gangbusters, to use a very technical economic phrase.

However, that has clearly caused some significant issues in terms of the housing industry being able to meet the construction timelines that are required under the guidelines. I have publicly congratulated the commonwealth government (a) on the scheme and (b) on two examples already where they have shown flexibility in terms of extending the timelines within which builders and individuals can meet the guidelines of the HomeBuilder scheme.

The unprecedented state of residential housing construction in South Australia and the demand for this scheme has meant that it is certainly the state government's view that we will continue to urge the federal government, together with the industry who have been raising this issue directly themselves, I might say, to see whether or not the eligibility criteria for the scheme can actually be extended. By eligibility criteria, we are specifically talking here about the period, which has been extended once, between the signing of a contract and the commencement of construction. The commonwealth government has extended that to six months.

There are increasing concerns being expressed by the industry about a range of issues. One is significant shortages of timber supply in South Australia for builders to be able to meet the demand for residential housing construction. A number of builders, particularly, I am told, those beneath the tier 1 level, are struggling to get supplies of timber suitable for them to be able to meet the contractual requirements for the individual home builder to be able to meet the demand of the HomeBuilder scheme.

So they have been lobbying the industry associations—the Master Builders Association, the Housing Industry Association, and others—and have been raising the issue with us. They have also been raising the issue directly with the federal government. The federal government in and of itself can't turn around the issue of timber supply overnight, that is going to be an issue of supplies being able to meet the demand, but clearly an extension of that time line of six months to a longer period—perhaps nine months—may allow the same number of homes to be constructed.

There shouldn't be an increase in cost for the commonwealth government over and above their existing commitments, and one can understand any budgetary pressures they might be concerned about. That shouldn't add anything to the construction but will allow a more extended time period within which builders in South Australia, in particular, might be able to meet the requirements of individual home owners.

I have a Board of Treasurers meeting later this week and I intend to raise the issue with colleague treasurers of state and territory jurisdictions to see whether or not our experiences in South Australia are being reflected in those other jurisdictions. Hopefully, if we can see a combined or united view, we can take the issue up with the commonwealth government.

I conclude my remarks by again congratulating and acknowledging publicly the commonwealth government for (a) the scheme and (b) their willingness to listen to industry concerns on at least two occasions so far. We urge the commonwealth government to listen—and I know they are listening—to industry concerns to see whether or not it is possible to further extend that guideline in the operation of the scheme.