30 May 2022

Guy Barnett, Minister for State Development, Construction and Housing

Partnerships key to delivering record infrastructure and housing program

A historic Memorandum of Understanding has been signed between the Tasmanian Government and key building and construction industry stakeholders today, paving the way for a true ongoing collaboration to address the challenges in delivering the State’s record infrastructure program.

Following the 2021 State Election, we established the Roundtable to create a partnership between the sector and Government to address the common challenges, support business needs and ensure a strong and sustainable construction sector both now and into the future.

Since then, the Roundtable has worked to develop the MOU signed today.

With our significant infrastructure pipeline driving growth in the sector, we estimate that we will need another 6,500 skilled workers across the building and construction disciplines by 2025.

With our major investment in infrastructure including roads, schools, education and social and affordable housing as well as investment in ports and renewable energy and hydrogen initiatives all demanding more from the building and construction sector, we must work together to ensure we can sustainably meet the demand, get more boots on the ground, and build Tasmania’s future.

The MoU outlines seven key focus areas for the industry and Government to work together on and builds on last year’s Building and Construction Roundtable which focused on our construction-led COVID recovery plan.

Together Government and industry will work to deliver:

• A regular and reliable infrastructure pipeline;
• Ensure a sustainable approach to risk management;
• Improve procurement processes and practices;
• Supply of equipment and materials;
• Improve our planning and regulatory processes; and
• Build resilient, high-performing businesses.

We recognise that our construction industry is a key contributor to our Tasmanian economy, as the fourth largest employer providing over 20,000 jobs. 

Over the next four years, $5.6 billion will be invested in Tasmania in transformational building and construction projects that provide long-lasting generational benefits including:

• $2.7 billion into the Tasmanian road, bridge and rail transport network over the next four years;
• $1.5 billion housing package to deliver an additional 10,000 new social and affordable homes by 2032;
• $11.2 billion for health infrastructure in the next four years which will include upgrades to the Royal Hobart Hospital and Launceston General Hospital; and
• Investing in infrastructure for education, with $250 million over four years for new schools, major upgrades and classroom and facilities improvements across the State.

To deliver this forecast infrastructure pipeline, the construction sector will have to grow and we are already working hard to develop our industry through our Hi-Vis Army initiative and this MOU will complement this work.

We recognise that we need to partner with industry to address gaps and challenges in how we work with industry and collaborate in building resilience in our supply chains and businesses to meet the challenges of the future. 

We have seen when partnerships are established we can achieve great things for business and our communities, and this is what we are looking to strengthen through these discussions.

Today’s Roundtable saw a continuation of the collaborative approach as we work together to strengthen Tasmania’s future and deliver for all Tasmanians.

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