Growth in Western Australia’s new housing sector is reflective of the WA economy overall and shows no signs of slowing, according to newly elected Housing Industry Association Western Australia president, Pino Monaco.
Mr Monaco, who is managing partner of law firm Godfrey Virtue & Co, says his 20-year involvement with the building industry has him well placed to understand the issues the sector faces.
And currently it is the shortage of skilled labour that poses the biggest challenge.
A change to a competency based apprenticeship system, rather than the current time-based system, was long overdue and would significantly increase apprentice numbers, Mr Monaco told WA Business News.
“We have a commitment from the State Government to increase apprentice numbers, but we really need to reform the way apprentices qualify,” he said.
“The industry is totally dependent on getting more labour, but there are some cultural elements within industry which are reluctant to embrace the change, as are the educational institutions and some unions.”
He considers the best way to implement change is to engage with the people who have an interest, recognise their interest and discuss the issues openly.
“The legal stumbling block is the Industrial Training Act, but there is a lot more substance behind that which also needs changing,” Mr Monaco said.
Retaining the affordability of housing is another important issue that needs to be addressed.
“The housing industry is a significant economic driver of the state, and if it becomes out of the grasp of a group of people, the economy will suffer,” Mr Monaco said.
“There are a raft of hidden state and federal government charges, which frustrate the cost of land and houses – some 30 per cent of the cost of a house and land package goes to government in one form or another.”
In addition to government charges, however, planners, manufacturers, suppliers, builders and local governments needed to work together to deliver the goal of affordability.
WA had 21,120 new housing starts last year, and Mr Monaco said 19,000 were expected this year.
While this represented a slight cooling off, Mr Monaco said it was so slight that the sector was still in ‘business as usual’ mode.
“The renovation market has also experienced a strong upward thrust lately, and the signs are all positive for a vibrant, healthy new housing market,” he said.