1 00:00:00,600 --> 00:00:03,160 Speaker 1: Joining me in the studio. Now, there's been I mean 2 00:00:03,160 --> 00:00:06,160 Speaker 1: there has been quite a bit going on, and we 3 00:00:06,200 --> 00:00:08,760 Speaker 1: know that the Northern Territory government this morning announce that 4 00:00:08,760 --> 00:00:11,400 Speaker 1: they're going to be extending the time frame for commercial 5 00:00:11,400 --> 00:00:15,160 Speaker 1: builders to be registered based on experience. So builders were 6 00:00:15,200 --> 00:00:19,440 Speaker 1: required to have at least three years practical experience gained 7 00:00:19,440 --> 00:00:22,239 Speaker 1: within the last ten years at least one in the 8 00:00:22,280 --> 00:00:26,119 Speaker 1: Northern Territory to be registered as a commercial builder, but 9 00:00:26,160 --> 00:00:29,000 Speaker 1: the Minister for Trade and Business, Robin Karl, extended that 10 00:00:29,120 --> 00:00:32,880 Speaker 1: period to fifteen years, with applications to be submitted before 11 00:00:32,920 --> 00:00:36,199 Speaker 1: the twenty seventh of March next year. Now, joining us 12 00:00:36,360 --> 00:00:41,440 Speaker 1: in the studio, Master Builders NT CEO, Damian Moriarty, good 13 00:00:41,440 --> 00:00:44,360 Speaker 1: morning to you. Good morning Katie, Thanks for having well, 14 00:00:44,360 --> 00:00:46,720 Speaker 1: thanks for coming into the studio. Now tell us is 15 00:00:46,760 --> 00:00:48,280 Speaker 1: this extension welcome. 16 00:00:48,000 --> 00:00:52,840 Speaker 2: News, Katie. A number of our members have really struggled 17 00:00:52,880 --> 00:00:56,000 Speaker 2: to get the requisite experience, even though they might be 18 00:00:56,080 --> 00:01:00,000 Speaker 2: quite skilled and we didn't have to record the infamation 19 00:01:00,360 --> 00:01:02,880 Speaker 2: with commercial licensing quite the same way that residential has 20 00:01:02,880 --> 00:01:05,720 Speaker 2: been running for over ten years now. So as a result, 21 00:01:06,160 --> 00:01:09,080 Speaker 2: going back, maybe going back into old partnerships and chasing 22 00:01:09,080 --> 00:01:12,280 Speaker 2: down paperwork, Maybe paperwork held with the anti government has 23 00:01:12,360 --> 00:01:14,920 Speaker 2: just been a nightmare, especially for the smaller builders. 24 00:01:15,160 --> 00:01:17,560 Speaker 1: Yeah right, so maybe people that have been operating in 25 00:01:17,600 --> 00:01:20,959 Speaker 1: the NT for quite some time, but not you not 26 00:01:21,080 --> 00:01:23,600 Speaker 1: keeping up with that paperwork or not having that paperwork 27 00:01:23,720 --> 00:01:27,520 Speaker 1: you know, those days ten twenty however long ago as 28 00:01:27,520 --> 00:01:28,480 Speaker 1: what you might now. 29 00:01:29,160 --> 00:01:31,120 Speaker 2: Yeah, I think the important point to note is that 30 00:01:31,280 --> 00:01:33,400 Speaker 2: even when you can go back ten years, there's very 31 00:01:33,400 --> 00:01:35,600 Speaker 2: few documents that anyone needs to keep for ten years. 32 00:01:36,440 --> 00:01:39,479 Speaker 2: And you know, so even asking builders to do that, 33 00:01:39,520 --> 00:01:42,400 Speaker 2: there's a lot of legwork involved. And in that respect, 34 00:01:42,520 --> 00:01:45,199 Speaker 2: going back to fifteen and giving people some more time, 35 00:01:45,240 --> 00:01:47,800 Speaker 2: that's going to make a huge difference to the outcomes. 36 00:01:47,920 --> 00:01:50,920 Speaker 1: Yeah. So in terms of I mean, were there concerns 37 00:01:50,960 --> 00:01:53,840 Speaker 1: sort of raised with you about that ten year timeframe. 38 00:01:54,840 --> 00:01:58,920 Speaker 2: It was more as people were applying for going through 39 00:01:58,920 --> 00:02:01,960 Speaker 2: the process, they were finding it quite difficult for those reasons, 40 00:02:02,400 --> 00:02:04,800 Speaker 2: you know, just trying to track down all the relevant 41 00:02:04,840 --> 00:02:07,920 Speaker 2: certificates and then you know, finding the certifi who was 42 00:02:07,960 --> 00:02:10,320 Speaker 2: on the job maybe eight or nine years ago, and 43 00:02:10,360 --> 00:02:13,040 Speaker 2: then writing a letter to support your role if you 44 00:02:13,040 --> 00:02:15,320 Speaker 2: weren't the person signing that piece of paperwork. But you 45 00:02:15,400 --> 00:02:18,560 Speaker 2: might have been intimately involved. Commercial jobs are massive. 46 00:02:18,520 --> 00:02:20,960 Speaker 1: Yeah, I mean, were there people that had maybe been 47 00:02:21,320 --> 00:02:24,200 Speaker 1: knocked back that can now sort of go back through 48 00:02:24,200 --> 00:02:25,040 Speaker 1: that process. 49 00:02:25,520 --> 00:02:29,480 Speaker 2: Certainly the indication from the government is that you can 50 00:02:29,520 --> 00:02:33,200 Speaker 2: go back through that process having now expanded down into 51 00:02:33,240 --> 00:02:35,280 Speaker 2: March and then from ten to fifteen years. 52 00:02:35,360 --> 00:02:37,320 Speaker 1: I mean, if we've got any commercial builders listening this 53 00:02:37,360 --> 00:02:39,640 Speaker 1: morning who've sort of got some concerns, what's the best 54 00:02:39,639 --> 00:02:41,600 Speaker 1: thing for them to do? Do you reckon? At this point? 55 00:02:42,560 --> 00:02:46,760 Speaker 2: The best starting points always giving the building practitioners bordering. Yeah, 56 00:02:46,960 --> 00:02:49,720 Speaker 2: they have a website and a phone number, and starting 57 00:02:49,720 --> 00:02:52,480 Speaker 2: with that inquiry process, they have a number of templates 58 00:02:52,520 --> 00:02:55,639 Speaker 2: there that you can rely on as well. In my experience, 59 00:02:55,680 --> 00:02:57,359 Speaker 2: a lot of those builders are pretty aware of those. 60 00:02:57,400 --> 00:03:00,359 Speaker 2: It's just a matter of trying to put it all together, make. 61 00:03:00,240 --> 00:03:00,880 Speaker 1: It work, yep. 62 00:03:01,000 --> 00:03:01,160 Speaker 2: Well. 63 00:03:01,200 --> 00:03:03,520 Speaker 1: And also people that work in a real practical way, 64 00:03:03,600 --> 00:03:06,560 Speaker 1: you know, like they're out there, they're building commercial properties, 65 00:03:06,600 --> 00:03:08,800 Speaker 1: they're doing a lot of things on the tools. So 66 00:03:08,880 --> 00:03:11,520 Speaker 1: then going back and trying to find that paperwork from 67 00:03:11,560 --> 00:03:14,320 Speaker 1: ten years ago it could be a difficult process for anybody, 68 00:03:14,760 --> 00:03:17,040 Speaker 1: but particularly when you're out there doing a really kind 69 00:03:17,040 --> 00:03:18,600 Speaker 1: of practical hands on job. 70 00:03:19,360 --> 00:03:22,240 Speaker 2: Yeah, and definitely when you consider the roles on commercial 71 00:03:22,320 --> 00:03:25,960 Speaker 2: you have project directors, project managers, site supervisors, you know, 72 00:03:26,000 --> 00:03:27,959 Speaker 2: and people may have even started as a chippying gone 73 00:03:28,000 --> 00:03:30,600 Speaker 2: through all of those roles. You know. A residential house 74 00:03:30,600 --> 00:03:34,040 Speaker 2: typically has far fewer people involved, so that closeness means 75 00:03:34,120 --> 00:03:36,240 Speaker 2: you're more likely to have all the relevant stuff that 76 00:03:36,280 --> 00:03:37,000 Speaker 2: you need on hand. 77 00:03:37,120 --> 00:03:40,920 Speaker 1: Yeah, hey, Damian. With the election nearing obviously May three, 78 00:03:41,000 --> 00:03:45,040 Speaker 1: that federal elections getting underway, there has been lots of 79 00:03:45,080 --> 00:03:48,800 Speaker 1: announcements made and quite a bit happening on the weekend 80 00:03:49,200 --> 00:03:52,120 Speaker 1: when it comes to well, when it comes to housing, 81 00:03:52,200 --> 00:03:55,680 Speaker 1: so effectively impacting the building industry. We know that Anthony 82 00:03:55,720 --> 00:03:59,600 Speaker 1: Albanezy pledged ten billion dollars to build one hundred thousand 83 00:03:59,680 --> 00:04:03,200 Speaker 1: new home homes nationwide, also allowing first time buyers to 84 00:04:03,200 --> 00:04:06,920 Speaker 1: purchase with just five percent deposit. Then, on the other 85 00:04:07,000 --> 00:04:11,240 Speaker 1: side of politics, Peter Dutton promising to will allow first 86 00:04:11,240 --> 00:04:14,600 Speaker 1: time buyers to deduct interest payments on the first six 87 00:04:14,720 --> 00:04:18,200 Speaker 1: hundred and fifty thousand dollars of their mortgages from their 88 00:04:18,200 --> 00:04:21,200 Speaker 1: income taxes and also allow people to access fifty grand 89 00:04:21,200 --> 00:04:25,360 Speaker 1: of their super for first times like what's your reaction, 90 00:04:25,520 --> 00:04:28,919 Speaker 1: I guess from master builders in you know, when you 91 00:04:29,000 --> 00:04:31,560 Speaker 1: look at the announcements being made and the way that 92 00:04:31,640 --> 00:04:34,400 Speaker 1: they might roll out in a practical sense for us 93 00:04:34,400 --> 00:04:35,520 Speaker 1: in the Northern Territory. 94 00:04:36,560 --> 00:04:39,599 Speaker 2: Yeah, well, I think to start with the basics, twenty 95 00:04:39,600 --> 00:04:43,080 Speaker 2: four billion dollars more or less from the two parties 96 00:04:43,120 --> 00:04:47,360 Speaker 2: being introduced into housing probably shows you just how much 97 00:04:47,360 --> 00:04:50,760 Speaker 2: of an issue it is within the community. You know, 98 00:04:50,800 --> 00:04:54,720 Speaker 2: the community has been pretty clear. Our survey and work 99 00:04:54,760 --> 00:04:57,480 Speaker 2: we do indicates around seventy percent of the community want 100 00:04:57,560 --> 00:05:00,839 Speaker 2: the government to get involved in take action. Housing and 101 00:05:00,920 --> 00:05:03,960 Speaker 2: access to housing is a massive issue. For a long time, 102 00:05:03,960 --> 00:05:06,719 Speaker 2: it's a state issue, but I think now we're just 103 00:05:06,760 --> 00:05:09,320 Speaker 2: so short of houses that we need that federal action. 104 00:05:09,800 --> 00:05:12,720 Speaker 1: So yeah, and how like for us here in the end, 105 00:05:13,040 --> 00:05:15,400 Speaker 1: how have things been going? You know when you look 106 00:05:15,440 --> 00:05:18,280 Speaker 1: at the number of new builds that have been underway. 107 00:05:18,400 --> 00:05:20,279 Speaker 1: I don't know whether you guys look at those stats 108 00:05:20,279 --> 00:05:22,560 Speaker 1: sort of from a month by month basis or whether 109 00:05:22,600 --> 00:05:25,679 Speaker 1: it's something that you more look at on an annual basis, 110 00:05:25,720 --> 00:05:28,200 Speaker 1: But how have things been going in the end? In 111 00:05:28,240 --> 00:05:29,880 Speaker 1: this space, we. 112 00:05:30,320 --> 00:05:33,040 Speaker 2: Look at the numbers a couple of different ways. We 113 00:05:33,080 --> 00:05:36,000 Speaker 2: look against the national housing accord target which is roughly 114 00:05:36,040 --> 00:05:40,520 Speaker 2: twelve thousand homes, we think we're going to short that significantly. 115 00:05:40,600 --> 00:05:43,000 Speaker 2: Master Builders in February we issued guidance that they were 116 00:05:43,000 --> 00:05:45,120 Speaker 2: going to come in around four thousand, So about eight 117 00:05:45,160 --> 00:05:48,120 Speaker 2: thousand homes short in Northern Territory. So there is a 118 00:05:48,120 --> 00:05:52,000 Speaker 2: massive gap and both policies that have been introduced by 119 00:05:52,120 --> 00:05:55,360 Speaker 2: the CLP and Labor they're short of the housing accord 120 00:05:55,400 --> 00:05:58,640 Speaker 2: target for the Northern Territory. But you make no mistake, 121 00:05:58,680 --> 00:06:01,400 Speaker 2: it's a big steps being taken to try and bridge that. 122 00:06:02,080 --> 00:06:05,560 Speaker 1: And you know, from the perspective then all of our 123 00:06:05,600 --> 00:06:08,840 Speaker 1: different trades that are working in the industry, what kind 124 00:06:08,880 --> 00:06:12,200 Speaker 1: of impact does that then have for them? You know, 125 00:06:12,640 --> 00:06:16,480 Speaker 1: when you're talking about an eight thousand shortfall, that's massive 126 00:06:16,800 --> 00:06:18,760 Speaker 1: and it must have a big impact I'm assuming on 127 00:06:18,839 --> 00:06:21,080 Speaker 1: our trades and on our different businesses operating in the 128 00:06:21,080 --> 00:06:21,960 Speaker 1: Northern Territory. 129 00:06:22,720 --> 00:06:26,280 Speaker 2: Yeah, I think, especially in the Northern Territory, a healthy 130 00:06:26,320 --> 00:06:31,279 Speaker 2: residential construction sector is a healthy economy. In general. We 131 00:06:31,480 --> 00:06:35,840 Speaker 2: haven't enjoyed a healthy residential sector for some time. The 132 00:06:35,920 --> 00:06:38,400 Speaker 2: numbers are definitely on the way back. And home Builder, 133 00:06:38,839 --> 00:06:41,120 Speaker 2: which is a state or the territory government policy has 134 00:06:41,160 --> 00:06:45,160 Speaker 2: been a resounding success in bringing residential off the canvas. 135 00:06:45,880 --> 00:06:49,320 Speaker 2: But moving forward, trying to get those skills into market. 136 00:06:49,760 --> 00:06:52,480 Speaker 2: You know, our apprenticeships need a lot of attention a 137 00:06:53,000 --> 00:06:55,480 Speaker 2: lot of different groups. We're all quite clever, are trying 138 00:06:55,480 --> 00:06:58,000 Speaker 2: to fix the problem. We have about twenty four hundred 139 00:06:58,000 --> 00:07:01,760 Speaker 2: apprentices across the territory at the moment, around six hundred 140 00:07:01,920 --> 00:07:05,640 Speaker 2: completed last year. We have about a thousand trainees in 141 00:07:05,640 --> 00:07:07,960 Speaker 2: addition too, but it's critical for us to be able 142 00:07:08,000 --> 00:07:12,360 Speaker 2: to bring through apprentices. We have migration with DAMA three 143 00:07:12,400 --> 00:07:15,040 Speaker 2: that's just come through Northern Territory government, I know are 144 00:07:15,040 --> 00:07:18,280 Speaker 2: hosting a number of sessions there. We've tried to get 145 00:07:18,280 --> 00:07:19,880 Speaker 2: some people in there that are already selling out. So 146 00:07:20,040 --> 00:07:23,720 Speaker 2: clearly the interest is extremely high in DAMA three. I 147 00:07:23,720 --> 00:07:26,040 Speaker 2: think we'll start to see flow through with immigration within 148 00:07:26,080 --> 00:07:29,040 Speaker 2: the next six months. And then thirdly, the other lever 149 00:07:29,200 --> 00:07:33,280 Speaker 2: is productivity. We're really going to struggle to make businesses 150 00:07:33,360 --> 00:07:36,560 Speaker 2: up here more productive. Generally, businesses are pretty sharp on 151 00:07:36,600 --> 00:07:37,480 Speaker 2: the way they do things. 152 00:07:38,600 --> 00:07:41,320 Speaker 1: Like if we do have a situation where you know, 153 00:07:41,360 --> 00:07:45,679 Speaker 1: whoever forms government federally and there is this real focus 154 00:07:45,680 --> 00:07:48,560 Speaker 1: obviously on people being able to buy their own home 155 00:07:48,600 --> 00:07:52,040 Speaker 1: and trying to get the housing markets stimulated and to 156 00:07:52,080 --> 00:07:55,120 Speaker 1: try to get things moving. Have we got the workforce 157 00:07:55,160 --> 00:07:57,240 Speaker 1: that we need to be able to deal with that 158 00:07:57,440 --> 00:07:58,640 Speaker 1: in the Northern Territory. 159 00:07:59,360 --> 00:08:02,120 Speaker 2: I think what we're seeing at the same time is 160 00:08:02,800 --> 00:08:05,240 Speaker 2: we need land and land coming to market at the 161 00:08:05,280 --> 00:08:09,880 Speaker 2: same time. I think the challenge for us as a 162 00:08:09,880 --> 00:08:13,800 Speaker 2: community is getting the land to market and then making 163 00:08:13,840 --> 00:08:17,480 Speaker 2: sure that we can track the relevant trades behind that. Okay, 164 00:08:17,640 --> 00:08:19,920 Speaker 2: the territory has been able to surge historically when you 165 00:08:19,960 --> 00:08:23,840 Speaker 2: look at various projects from Bechtel to Impex to raft 166 00:08:23,840 --> 00:08:28,040 Speaker 2: based Tindle. We do have a proven track record to scale. 167 00:08:28,480 --> 00:08:31,320 Speaker 2: So you know, we got to back the construction market 168 00:08:31,400 --> 00:08:33,280 Speaker 2: and the contractors who have been here for a long 169 00:08:33,320 --> 00:08:35,440 Speaker 2: time to be able to attract those workers back into 170 00:08:35,480 --> 00:08:36,600 Speaker 2: Dah and get it going. 171 00:08:36,760 --> 00:08:40,800 Speaker 1: So I guess on a whole from the construction industry 172 00:08:40,880 --> 00:08:44,840 Speaker 1: and certainly from you guys at Master Builders, are the 173 00:08:44,880 --> 00:08:48,360 Speaker 1: announcements and this focus on housing and trying to get 174 00:08:48,400 --> 00:08:49,960 Speaker 1: things moving. Is it a good thing? 175 00:08:50,880 --> 00:08:54,240 Speaker 2: I think it's a great thing. Supply, as we've spoken about, 176 00:08:54,280 --> 00:08:57,360 Speaker 2: it's a good step and the skill gap still remains 177 00:08:57,640 --> 00:09:00,280 Speaker 2: and it will drag down the value for money, something 178 00:09:00,280 --> 00:09:03,160 Speaker 2: for us to keep an eye on as taxpayers. The 179 00:09:03,200 --> 00:09:06,160 Speaker 2: other thing probably to note on the labor policy. You know, 180 00:09:06,160 --> 00:09:08,120 Speaker 2: it has a cap of six hundred thousand dollars for 181 00:09:08,160 --> 00:09:10,320 Speaker 2: the Northern territory. It's well over a million dollars in 182 00:09:10,360 --> 00:09:14,280 Speaker 2: other capital cities. And if you've been into some of 183 00:09:14,280 --> 00:09:16,600 Speaker 2: the residential builders and trying to put something together at 184 00:09:16,640 --> 00:09:19,360 Speaker 2: six hundred, you know that's quite a challenge at the moment. 185 00:09:19,520 --> 00:09:22,480 Speaker 1: So does that include land or is that just the build? 186 00:09:22,880 --> 00:09:24,320 Speaker 2: To my knowledge, I think it's house and land. 187 00:09:24,440 --> 00:09:27,000 Speaker 1: Oh goodness me, that is going to be like, that's tough. 188 00:09:27,120 --> 00:09:28,800 Speaker 1: You know, you're going to struggle to find something. 189 00:09:28,840 --> 00:09:30,960 Speaker 2: I would think yes, on one level, that's a first 190 00:09:30,960 --> 00:09:33,960 Speaker 2: home owner grant access and I'm very sympathetic to that. 191 00:09:34,080 --> 00:09:37,040 Speaker 2: But just the reality of going out on into the 192 00:09:37,080 --> 00:09:39,760 Speaker 2: display villagers and trying to get something up. So maybe 193 00:09:39,760 --> 00:09:42,480 Speaker 2: there could be a bit of attention to increasing that cap. 194 00:09:42,760 --> 00:09:44,720 Speaker 2: If you can go to a one point two million 195 00:09:44,760 --> 00:09:46,959 Speaker 2: dollars in other areas, I'm sure you know, seven p 196 00:09:47,040 --> 00:09:49,959 Speaker 2: fifty or something might be a reasonable compromise to allow 197 00:09:50,000 --> 00:09:52,120 Speaker 2: people to access the program in a genuine way. 198 00:09:53,000 --> 00:09:57,240 Speaker 1: Well, Damian Moriarty, Master Builders and t CEO. Really good 199 00:09:57,240 --> 00:09:59,240 Speaker 1: to speak with you this morning. I appreciate your time. 200 00:09:59,400 --> 00:10:00,000 Speaker 2: Thank you for the time. 201 00:10:00,360 --> 00:10:00,760 Speaker 1: Thank you.