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Speaker 1: New insight though. Meantime and where our construction sector is,

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Speaker 1: We've got the core Lodge of Construction Costs index, so

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Speaker 1: we've gotten uptick for the quarter of the chairperson that

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Speaker 1: Combined Building Supplies co Op. Carl Taylor's with us on

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Speaker 1: this Carl Morning, Good morning, Mike.

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Speaker 2: How are you well?

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Speaker 1: Thank you mate, one point one percent rise for the quarter.

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Speaker 1: So what is the small seeds like at the end

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Speaker 1: of the tunnel green shoots, singing hammers.

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Speaker 2: Yeah, we're just starting to see a bit of an

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Speaker 2: uptake and work. I mean, obviously we're seeing that building

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Speaker 2: consensus the slowly coming up, but that only counts for

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Speaker 2: a small portion off the actual work out There a

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Speaker 2: lot of guys that have built in decks and fences

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Speaker 2: and the small stuff that they cry and they're really hurting.

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Speaker 2: I'm still hoping the phones are ringing more, but that's

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Speaker 2: going to take a fair bit of time.

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Speaker 1: I think how much of it it's about money, access to money,

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Speaker 1: and my desire to borrow some to build something bigger.

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Speaker 2: Yeah. Well, I saw going to a shareholder yesterday and

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Speaker 2: he said generally he would normally go to a thirtier

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Speaker 2: lender lending for his spec builds any just starting to

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Speaker 2: see the doors of the banks open a little more so,

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Speaker 2: I guess what he's saying is that the banks are

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Speaker 2: come in a bit easier to lend money to spex.

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Speaker 2: But again, that's going to take twelve elly months to

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Speaker 2: see come back to the market by the time those

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Speaker 2: steck bills come back on track.

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Speaker 1: So does today, for example, in the inflation rate in

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Speaker 1: another cut before Christmas from the Reserve Bank. Does all

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Speaker 1: of that materially help or is it still a bit early?

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Speaker 2: Still early? But it obviously brings confidence back in the market.

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Speaker 2: We certainly want to see the phones ring again. There's

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Speaker 2: liquidations that happen a lot, so anything that helps the

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Speaker 2: construction economy is certainly going to help the end market.

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Speaker 1: Yeah, okay, so costs are they down or have they

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Speaker 1: just stopped rising?

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Speaker 2: We've got one price increase this week five percent over

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Speaker 2: a product, but that's the first one I've seen in

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Speaker 2: a long time. I know. Steel prices come down a

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Speaker 2: fair bit. Jim plateau, I think the key thing here

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Speaker 2: is hasn't gone up. It just seems the plateaued right

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Speaker 2: off now. Labor price guys could certainly play with that.

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Speaker 2: That's gone up in the last two years. But if

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Speaker 2: they played with that, they might get some work. But again,

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Speaker 2: it's bloody tough out there at the moment exactly.

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Speaker 1: And here's my problem, because I follow this really closely

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Speaker 1: because I'm fascinating with housing. The problem you've had is

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Speaker 1: the cost has gone through the roof and so even

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Speaker 1: if things have settled now, which they appear to be,

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Speaker 1: you're still at a cost per square meter at a

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Speaker 1: ridiculous rate, aren't you. Yeah, I mean why would I build?

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Speaker 1: What's the point I'll buy something that's already there.

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Speaker 2: Well, the big thing that's gone up as the land

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Speaker 2: as we know. If I use one example here in

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Speaker 2: christ which Presston subdivision two years ago you get a

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Speaker 2: section of two point fifty for four hundred square meters,

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Speaker 2: you're now paying close to half a million. So what

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Speaker 2: we were selling for nine hundred, we're now trying to

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Speaker 2: sell for one three, one four, one five. So people

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Speaker 2: just don't have that tin to be able to buy them.

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Speaker 2: So yeah, it's a bit of a mongol this for sure, all.

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Speaker 1: Right, a bit of a mongrel.

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Speaker 2: I like it.

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Speaker 1: Carl, Well done, You appreciate you time very much. Cal Taylor,

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Speaker 1: who is the chairperson for the Buy and Building Supplies Color.

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