Leadership Matters: Housing crisis tied to green and red tape, not cost of building supplies, says Stokes
Excessive regulation — not a lack of construction materials — is largely responsible for the nation’s housing crisis, according to leading Australian business executive Ryan Stokes.
Mr Stokes weighed in on the Federal Government’s target to build 1.2 million houses by 2030, a target which most economists and industry analysts say will almost certainly not be met.
By now, the Government should have started construction on about 250,000 homes, but the number of housing starts is currently languishing around 130,000.
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By continuing you agree to our Terms and Privacy Policy.The chief executive of Seven Group Holdings, which owns Boral — Australia’s largest concrete and cement maker — says the price and availability of building supplies is not the problem.
“There’s plenty of (construction) materials, right, that’s not a factor. Construction materials are not a major cost impediment,” Mr Stokes told a Leadership Matters breakfast hosted by The West Australian in Perth on Thursday.
“If you look at what it costs to go from idea at the site to a family moving in, the duration and approvals are a huge cost impediment in that process.
“You buy a site, have to go through the rezoning, development applications, and everything associated with that . . . the amount of time and cost is substantial.”
Mr Stokes said there was “ no single silver bullet” to fix the issue, rather it should be part of a broader push to reduce excessive green and red tape.
“We need a much greater focus on productivity from both State and Federal governments,” he said.
“The increase in regulatory oversight and green tape is a deeply concerning trend that is impacting productivity.
“From a regulatory perspective, there seems to be an imbalance with a focus on avoiding and eliminating risk without appreciating the associated costs of compliance among these risks, and the most significant concern is the excessive layering of green tape, particularly at the Federal level.”
Mr Stokes also believes a lack of skilled labour in Australia is also an issue.
“We need skilled migration, this needs to be coupled with investment in infrastructure to underpin a productive and vibrant economy.”
