Master Builders Victoria (MBV) hosted the Treasurer of Victoria, Tim Pallas, in a special members forum to update our industry on the current situation with key supply shortages impacting the building and construction sector.  

The Treasurer was joined in the online discussion by Commissioner for Better Regulation and Red Tape Commissioner, Anna Cronin, along with industry representatives including builders, retailers, and suppliers.  

Firstly, MBV CEO Rebecca Casson acknowledged that many of our members are hurting as a result of the current shut down, particularly our renovation members who haven’t been permitted to work inside occupied premises for many weeks now – and many of whom are small business owners who are struggling to survive. 

"As an industry we have worked tirelessly to remain safe and open for many months," she said. 

"And our sector has been fortunate to continue to work where many other industries have not. 

"Everyone wants to see this whole situation quickly resolved – and on behalf of our members – Master Builders Victoria is working extremely hard, both publicly and behind the scenes with the Victorian Government and key stakeholders, to advocate for the safe and sensible reopening of our industry." 

Ms Casson thanked the Treasurer for his commitment to our industry and for his positive engagement with MBV during this unprecedented period. 

However, Ms Casson said that .well before this shutdown, our industry was facing – and continues to face –the major issues presented by the supply chain challenges. 

Following strong advocacy by MBV, the Victorian Government asked Commissioner Anna Cronin to further investigate this issue – which has seen wait times for key materials blow out to as much as 16 weeks – and will consider her advice in coming weeks.  

During her presentation to members, Ms Cronin welcomed the session as she seeks to finalise her recommendations to the Victorian Government. 

“Our work so far has had a particular focus on timber shortages, but we recognise that there are other building inputs that are subject to supply constraints and price impacts,” she said. 

“I’ve been asked to look particularly at the impacts on small to medium sized builders – they are doing it particularly tough at the moment. 

“We are also looking at builder-consumer issues in terms of the contractual arrangements under the Domestic Building Contracts Act – and there are also some really challenging logistics issues with sea freight.” 

Ms Cronin said the latest figures showed the number of building permits issued in Victoria increased by 11 per cent to the year June 2021 – an additional 12,000 building permits. 

With examples of timber prices increasing by as much as 50 per cent, Ms Cronin said it was important to not only look at short term opportunities but to think medium to long-term and source more input locally. 

“The other statistic that stood out to me was 27 per cent of all Victorian building insolvencies in the year to June 2021 were construction firms,” Ms Cronin said. 

“That same figure was 18 per cent between 2017 and 2019 so you see the construction sector has been taking this particularly significantly.” 

Other speakers included Duncan Bryce, Head of Builders Solutions, Bunnings Trade; Rhett Simonds, CEO of Simonds Consolidated; and Mark Little, President, MBV, and owner of Little Constructions.