Economist says Government should step up to help save $40 billion construction industry

There are warnings that if the Government doesn't step up, jobs, businesses and the future of the $40 billion construction industry could be at risk.

It comes as the sound of construction will be heard around the country tomorrow as work starts back at many sites.

However, ASB economist Jane Turner believes there are options available to the Government to help out.

“We are expecting to see at least a six per cent fall in house prices, that will deter people from constructing," she said.

“But it would be a good time for the Government to step up and ramp up some of their social housing projects like KiwiBuild in place of some of that private demand."

With work starting up at 300 sites tomorrow, the state housing agency Kainga Ora is looking at various ways to build houses faster.

“Auckland City Council released a change to noise controls, offering the ability to extend the hours of construction, which is one way to do it,” Kainga Ora’s Patrick Dougherty said.

Government departments like Kainga Ora and Corrections are also changing the way they pay bills to make it faster and support sub-contractors.