Due to the recent occurrence of structural problems that have threatened the reputation of the building industry, construction activity could soon cease across Australia—this due to quickly elevating insurance premiums.
In response to this situation, a group of organisations that consists of Master Builders Australia (MBA), the Property Council of Australia (PCA), the Australian Industry Group (AIG), the Insurance Council of Australia (ICA) and the Australian Construction Industry Forum (ACIF), have written a letter advocating for reform to federal industry minister Karen Andrews.
The groups expressed their concern over the present state of the building industry, asserting that a “flawed regime” of state regulations and quickly escalating insurance premiums will bear a bad impact on the Australian economy.
The signed correspondence comes in advance of a meeting that Andrews will chair this week, addressing the problems that private building certifiers and surveyors are now facing when they try to secure compulsory insurance.
As much as 30 percent of insurance renewals for building certifiers and surveyors may not be renewed this month, says MBA chief executive Denita Wawn. Those who are able to renew their insurance policies are being hit with substantial boosts in their premium costs.
These increases could lead to the ceasing of building activity throughout the country, impacting businesses, their employees and the Australian economy in its entirety.
Elevating insurance costs are being attributed to the recent occurrence of structural problems that have led to evacuations in newly constructed apartments in Sydney and Melbourne, such as the Opal Tower, Liberty Tower, and Mascot Towers. In the words of those who signed the letter, it is important that the industry’s reputation be restored in full to resolve this issue; with the institution of uniform industry regulations seem by some as a possible solution.