00:01From laying roads to moving earth and materials, the global fuel crisis has sent construction costs soaring.
00:10Ballarat-based contractor Andrew Marr says it's more than his business can absorb.
00:15If we stop, housing stops, everything stops and the industry will fail because it's unsustainable.
00:24The cost of asphalt is up 50%, PVC pipes 30% and diesel has nearly doubled.
00:31All while contract prices remain fixed, something the Civil Contractors Federation says is...
00:38Formula for failure.
00:40The sector still hasn't recovered from the impacts of COVID with 3,500 businesses going under just last year, even
00:49before this crisis began.
00:51We need to make sure that that cost is offset to keep those businesses viable and keep those projects running.
00:57The Federal Government is distancing itself from calls to subsidise the sector, pointing to steps already taken like slashing the
01:05fuel excise and heavy vehicle user charge.
01:09The Treasury and the Treasurer will continue to look at what other options are available should this situation continue and
01:15or worsen.
01:16Just solve the problem. Just solve the problem.
01:19The industry is warning of mass layoffs and major delays to Australia's ambitious housing targets unless contracts can be renegotiated.
01:29The Federal Government says the sector should talk to states and territories who are responsible for the majority of infrastructure
01:38projects.
01:38We will always sit down with key industry sectors, listen to their concerns, as we have done.
01:45We know this is something that we need to keep looking at and talking with industry, that's what we're doing.
01:50A crisis showing no signs of letting up.
01:53In a crisis, this world is going from a crisis.
01:53I think we're going to be the very, very different type of crisis for us.
01:56That's the right point.
01:58We'll see you next time.
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