Bran Black interview with Laura Jayes, AM Agenda, Sky News

21 October 2024

Event: BCA Chief Executive Bran Black interview with Laura Jayes, AM Agenda, Sky News

Speakers: AM Agenda, Sky News Host, Laura Jayes; Business Council of Australia Chief Executive Bran Black

Topics: Housing, supply, economics, productivity, planning approvals, industrial relations, cost of living, migration, skills

Laura Jayes, AM Agenda, Sky News: Joining me now is Business Council of Australia chief executive, Bran Black, great to see you. So, what is it exactly that the BCA is proposing here, and is the government listening?

Bran Black Chief Executive, Business Council: Well, Laura, thanks so much for having me on the show. What we're proposing is a whole series of recommendations in our report that add to supply, but we know that delivering on those recommendations is difficult, so what we've suggested is what we're describing as a national reform fund. Now this would apply more broadly with respect to productivity enhancing initiatives, but a key thing that you can do to drive productivity is boost housing supply. And so, what we're saying is that the Federal Government could incentivise states to undertake some of these difficult reforms that are needed to drive supply. This is a similar approach to that which we've seen in the late 90s and early 2000s with competition payments. That was $5 billion paid then, and that's delivered about $60 billion each and every year in uplift to a GDP. We want to see something similar here.

Laura: There is already incentive from the Federal Government, for the states, for every home that they build. Are you saying that's not enough for it's not working. How would this work in concert?

Bran: So, we think that it's important to have these types of initiatives and these incentives that are already in place, but we know that they're not going far enough to deliver on our existing targets. So the Federal Government, in collaboration with the states, set a target as part of the housing accord of 1.2 million new homes over the next five years. What that translates into is nine homes per 1000 people each and every year. At the moment, we're on track to deliver 6 homes per 1000 people. So there's more to be done. And our point with this report is here's a whole series of initiatives which we regard as important on the road to delivering that increased supply.
Laura: It must be really frustrating for you, Bran, when you look at the politics of all of this as well, whilst what the Government has got in the Senate at the moment isn't perfect, but you have, you know, a lot of politics at play when you've got the Teals and some Liberals in places around Sydney that are opposing higher density around transport hubs. You also have the Liberals at a federal level blocking build to rent schemes. What do you say to them?

Bran: We think it's important to support initiatives that are going to deliver more supply. Now I do note that some of the initiatives that you mentioned are demand side initiatives, our report is fairly and squarely focused on supply. But one thing that I just note in this regard is that if you look at some of the initiatives that we've referenced in our report, a lot of these are initiatives that are already being rolled out across different jurisdictions throughout Australia. So, Queensland's concierge system, New South Wales approach to transparent data on council approvals, the consolidated approach to zoning that South Australia has, and WA's approach to setting thresholds for state significant development, and those are just examples. If we were to harmonise just those things across the Commonwealth, things that are already being done, we'd see significant change in terms of delivery of supply.

Laura: And what about the supply chain issues? If you've tried to build a home or renovate a home over the last couple of years or months, the costs seem to go up significantly, almost on a quarterly basis. What is the BCA's proposal around that

Bran: Well, there are so many different factors that are coming into play in that regard. We know that when our members, our members who are home builders, talk about the different issues at play, and they're talking about, as you say, supply with respect to labour, supply with respect to building materials that cost of debt. What we're saying is that with respect to labour, we think that's important first and foremost to try and produce the skill sets that Australia needs in this respect here at home. So that's looking at apprenticeship schemes. It's looking at mutual recognition of qualifications that people have in one jurisdiction, recognising that qualification in another jurisdiction, and it also means looking at migration. We know that as much as we want to produce all the skill sets required here in Australia, we're not going to and at the moment, one in every three sectors is reporting a skills gap. So we think we've got to make sure that we're prioritising bringing in those skills that we need in order to continue to drive our economy.

Laura: Yeah, and that still doesn't seem to be happening, does it? The prioritisation of skills that we actually need? Why is it so hard?

Bran: What we think, there is certainly a ways to go in that respect. So, I agree with you in that regard. We do need to prioritise bringing in these skills. We know that there's a significant gap in relation to skills required, particularly in the building and construction industry, everything from painters, plumbers, electricians, carpenters, architects, surveyors, engineers. The list goes on. We do need to make sure that we've got a means by which we can focus on, as I say, really pinpointing the skills that we can try and develop here in Australia, but also fast tracking, wherever we can, opportunities for skilled migration in those key areas.

Laura: Yeah, look, the states are doing some of the heavy lifting. I remember when I was in South Australia with you, Peter Malinauskas was really frustrated with the rezoning issue and freeing up land for housing. You have New South Wales certainly trying to lead the way on planning reforms. Today, Jacinta Alan making announcements around stamp duty. What do you think of all of those moves, but particularly out of Victoria today?

Bran: Look, I think it's really important that we are seeing states and territories take steps forward. We know that they are listening, but we know that they are recognising that there's more that needs to be done if we're to bridge that gap and deliver on that 1.2 million home target. In terms of Victoria, these are important steps, and when we're talking about stamp duty, it's important to remember this is effectively a tax on mobility. Just to give you an example, if you've got a family, the kids might have moved out. You've got two parents, they might have a large family home, but they're actively disincentivised from downsizing because of that large upfront cost that they have to bear if they buy another property, and so that means that the larger house that they're occupying right now isn't available for a family that genuinely has that need in terms of space. This is the kind of tax that we really do need to dispense with, but it's hard, and it's hard because it is expensive, it really contributes towards state revenue. So there needs to be an approach taken in terms of supporting states to undertake this type of important reform, and that's where our national reform fund comes in.

Laura: Yeah, good time just ahead of an election as well, they tend to listen a little bit more closely before a federal election. Bran, thanks so much for your time. We'll see you soon.

Bran: Thanks Laura.

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