Labor's economic failures hitting home building sector

The gloomy outlook for Australia’s builders is further evidence that Labor’s addiction to spending is hurting the economy and hindering a private sector recovery, said Senator Marise Payne, Shadow Minister for Housing, following the latest figures from the Master Builders Association (MBA).

The quarterly National Survey of Building and Construction for September 2010 showed that builders expect conditions in the residential sector to deteriorate in the next six months and are worried about interest rate increases.

“The concern in the building industry over imminent interest rate increases impacting on forward orders is another consequence of Labor’s wasteful spending,” Senator Payne said.

“Higher costs for builders will also be passed onto homeowners and renters who are already facing increasing costs of essential services like electricity and water.

“The Master Builders Association is also calling on the Reserve Bank to keep interest rates on hold until a private sector recovery in the building industry can regain momentum.

“However the Gillard Government appears to be deaf to industry concerns and is continuing to spend billions of dollars of borrowed money to stimulate our economy when the worst of the global financial crisis is behind us.

“Labor must stop its reckless spending to create a low-inflation environment where the residential sector can build affordable homes for homebuyers and investors who provide rental accommodation.”