00:00Well, I think the first thing I would say is that we would really, at the highest level,
00:06we would love to see the Government recommit to the housing accord. One of the reasons
00:10for that is because that has actually put the issue of housing supply on the table and
00:17all the regulatory barriers that are holding us back from building the 1.2 million homes
00:22that the Government has as its target. But I guess what I really would expect now is
00:29the impact that they will be talking about is all the regulatory barriers that come into play
00:36that cause delays and additional cost to the supply of housing.
00:43And on that, as we just outlined, a freeze of the National Construction Code could be on the cards.
00:49Do you think that so-called red tape is stifling the construction of new homes and driving up costs?
00:55Yeah. So, we are not necessarily advocating for a complete freeze, but what we would like
01:01to see is a slowdown in the churn and release of new additions to the Construction Code.
01:11The Construction Code actually can contribute to innovation and drive change in the sector,
01:18but some of the changes that we have experienced recently are not adding additional costs,
01:25but also arguably creating sort of diminishing returns to the benefits that they are meant to create,
01:33such as energy efficiency and accessibility. So, that's one thing that we would like to see.
01:39We also want to make sure that the processes and the procedures and the assessments that go into those changes
01:46are actually fully considered and that their impact on the cost and the amount of red tape that they add
01:55is actually properly assessed so that we make sure that we actually are getting the right outcomes.
02:03So, what would be the most viable time period then, in your opinion, if not a complete freeze here,
02:09what would you like to see?
02:10Well, at the moment, releases to the National Construction Code occur about every three years,
02:19and so we would be recommending that that slows down to a five-year timeframe.
02:25That gives time for proper consultation, proper adoption by the industry.
02:30They need to change plans, often look at new products.
02:34The sites that you can build on might change.
02:39So, we just need that additional time to adapt to some of those changes.
02:45And as you say, it's every three years. The code used to be updated around every year.
02:50I understand that was to limit code changes, you know, mid-build.
02:53But has there been any evidence of costs going down or supply up with that change from roughly every one year to three years?
03:02Well, I mean, look, it's hard to pin the cost, the increase in the cost of housing to just one thing.
03:11I mean, we know that the cost of regulatory fees, charges, taxes and time can actually add almost 50% to the cost of a new house and land package in Sydney.
03:25And so, we know that if you reduce red tape, if you reduce regulation, that it will have to have a positive impact on driving costs down.
03:35And is the voice of the consumer aligned with this?
03:40I mean, would quality and safety go down if we were to extend that period or indeed freeze it for a period of time?
03:47Yeah. So, we build homes to seven star. We build good quality new homes in this country.
03:53And so, I don't think we need to be concerned that any slowing down of the code will somehow reduce the quality of the homes that we, the new homes that we produce.
04:03If we want to get good outcomes around energy efficiency, we only build just under 200,000 new homes a year.
04:11So, really, we should be looking at our existing stock more.
04:14And projects like or programs like new battery storage programs that the government introduced, those are the kinds of things that will have more positive impact on housing than actually what we can get in terms of quality out of changes to the construction code in our new homes.
04:33And would you still like to see urgent reforms needed added into the code at any point in time?
04:40Well, if it is required, then obviously this is why the freeze is not necessarily the right language to use because you still have to be open to changes that might be needed in the construction code at some point in time.
04:56And, you know, and so we can't necessarily just completely throw the rule book out.
05:01We actually have to. We're not proposing that.
05:04We're actually just making sure that the improvements that we want to make are actually properly considered and that there is time for the industry to adapt and that the cost that might come from that is properly assessed.
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