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Date: 24 January 2025, 11:15am AEDT
Speakers: Denita Wawn, CEO Master Builders Australia
Topics: Apprenticeship incentives; housing crisis
E&OE
Holly Stearnes, host Sky News: Well today the Prime Minister has announced $10,000 bonuses to new apprentices to help relieve the housing crisis that Australia is experiencing at the moment. Joining me live is Master Builders Australia chief executive, Denita Wawn. Denita, good morning to you. Thanks for your time today. You’re happy about the announcement, of course?
Denita Wawn, CEO Master Builders Australia: Absolutely. We need as many tradies as possible. We’ve got a housing crisis in this country, and part of it is because we’ve got a skills shortage. So, anything to do that will help us not only encourage people into a trade, but actually complete a trade is critical, it’s part of the puzzle of resolving our housing crisis in this country.
Holly: I mean, as you’ve said, that we do have a housing crisis. There’s no denying that. There are more than 1 million houses to build at the moment. Well, that’s what the government has promised, at least. Will apprentices make up the housing shortfall though, it’s going to take a lot more than just apprentices, won’t it?
Denita: Absolutely, this is just a small component of many components that we’ll be seeking, not only from the Government but also the Opposition in the lead up to this year’s Federal election. We need more skilled people now, which means we need to encourage more people back into the industry, but also focusing on skilled migration, and we still haven’t got those settings right. We do need more apprentices, but also, we need better economic conditions. The real concern at the moment is we’re not seeing enough houses being built, particularly apartments. Why? Because construction costs are up by 40 per cent. Our productivity has been declined by 20 per cent over the last 10 years. So, we need inflation down, interest rates down. We need costs down, and that is going to require a concerted effort from all levels of government, but particularly the federal government. And so, as consequence, both major parties are now put on notice by our industry. We need more homes for more Aussies and so they need to focus their attention on housing in this federal election.
Holly: Absolutely. I mean, it is going to be a core piece of Anthony Albanese’s speech over the next hour or so. I mean, the Coalition says 80,000 apprentices have dropped out since the government has been elected. We’re at an 11 year low in terms of building approvals. The rental market is tough as well, we know that, and people can’t buy a house because the supply just isn’t there. Then there’s this labour shortage, but then there’s the other side of this, Denita, because without roads, rails, sewerage and water, without that, you can’t build homes. So, what do you need now moving forward in regard to that as well?
Denita: Absolutely right, Holly. We need to ensure that the building and construction industry in totality, is building our communities for the future. We can’t have homes unless we’ve got a water system, an electricity system and so forth. So, we need a concerted effort. Master Builders Australia has applauded the announcement late last year by the Coalition in terms of an infrastructure, critical infrastructure fund, that needs to be matched by the government, and we also need to ensure that there is ongoing commitment, not only to our transport infrastructure, our utilities infrastructure, but also our social infrastructure. If we don’t have access to hospitals and schools and so forth, our communities cannot thrive. And so, for us, it is critical that we get all components working together, and that the building and construction industry is central to that. We cannot have a great community if we don’t have the proper structures around us to ensure that we’re supporting all Australians.
Holly: Indeed, some strong words there from you. I mean, around 50 per cent of all apprentices don’t complete their training. Why is that? And do you, are you confident that these incentives will work to effectively change that?
Denita: Certainly, the incentives are good, but we need more. We need more support for apprentices as they’re going through their apprenticeship. We need more support for employers. When we had employer incentives, we certainly saw an uptick of apprentices, both in terms of numbers, but also completions. And so, we will be talking to the government, but also the Coalition, in terms of what suite of policy measures are required to ensure we get people and that they complete their trade. Certainly, we also need to encourage people to actually understand the opportunities. We’ll be releasing in the next few weeks, a Construct Your Career guide. We’re very excited about this, because it’s really showing people what the opportunities are. And certainly, I know I’m encouraging my kids to consider a career in trades. You get paid while you’re training. You get these incentives. There’s fee-free, TAFE, and of course, you get a huge career opportunity, well paid by the end of it. And that is the conversation that parents around the country need to have this long weekend.
Holly: Okay, Denita, thank you for your time today. Appreciate it.
Denita: Pleasure. Thank you.
Media contact:
Dee Zegarac
National Director, Media & Public Affairs
0400 493 071
dee.zegarac@masterbuilders.com.au