As Victoria’s construction industry enters a “pilot light” phase, the focus turns to stimulus measures and settings to ensure businesses can survive the lockdown period.
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Three key takeaways:
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On Monday Victorian premier Daniel Andrews announced six-week restrictions designed to stop the spread of COVID-19.
Victoria contributes a quarter of the nation’s economic output and was Australia’s fastest growing state before the COVID-19 pandemic. More than a million Melburnians are now either working from home or have been stood down.
From 11.59pm on Wednesday 5 August, most retail will close, as well as some manufacturing and administration. Essential retail, including supermarkets, grocery stores, pharmacies and petrol stations, will remain open.
The remainder of retail stores can service customers through click-and-collect. Andrews has said “retail will look very different than it’s looked”.
Premier Andrews described construction as the “lifeblood of the Victorian economy” before outlining the restrictions to curtail the industry over the next six weeks.
The property and construction industry generates 13 per cent of the state’s GDP and almost 15 per cent of employment.
Government construction projects have already reduced their workforce by about 50 per cent, Andrews said.
Large construction projects above three storeys must reduce their workforce “down to the practical minimum,” and can have no more than 25 per cent of their workforce on site.
Domestic home building can have a maximum of five people on site. According to the Housing Industry Association more than 30,000 houses and a further 30,000 apartments are currently under construction across Victoria.
Andrews has described restrictions in the construction sector as “moving them to a pilot light phase”.
According to Property Council Victorian executive director Cressida Wall “there is no question that additional restrictions on our industry will have a drastic financial impact, but we all want Victorians to get through this pandemic safely”.
On Monday, the federal government announced it will provide $1,500 a fortnight to workers who contract COVID-19 and are not eligible for other payments. Other measures are expected in coming days.
The Property Council will continue to work with the state government to “get clarity for businesses and employees about what their next six weeks hold,” Wall says.
“Industry will need urgent financial support to survive these restrictions, and we welcome the support announced today. Further measures and concessions will be required once restrictions are lifted, in order for industry to recover,” Wall says.