How is the construction ban impacting Australia?

September 22, 2021 12:23 PM AEST | By Sonal Sinha
 How is the construction ban impacting Australia?
Image source: © Mikeledray | Megapixl.com

Highlights

  • Victorian Government has declared a two weeks lockdown from 20 September 2021.
  • Victoria is the second city on the list where most coronavirus cases have been reported.
  • Many people protested against the lockdown decision made by the Government.
  • The Government would engage with the industry to get as many workers vaccinated as feasible.

Considering the rise in the number of COVID-19 cases including multiple outbreaks related to construction, the Victorian Government announced that construction would be closed for 2 weeks in metropolitan Melbourne and other Local Government Areas now in lockdown. The restriction started from 11.59 pm, 20 September 2021.

The unprecedented lock down announcement came after a day of protests at the head office of the construction union. Apart from critical infrastructure works that includes hospitals and ongoing level crossing removal projects, the construction industry will remain shut for two weeks in metropolitan Melbourne, the City of Greater Geelong, the City of Ballarat, the Surf Coast Shire, and the Mitchell Shire. Additionally, there is an exemption allowing a restricted number of workers to visit construction sites to close them down carefully.

Further, all sites would be needed to establish compliance with Chief Health Officer Guidelines before reopening. It also includes workers showing their employers proof of having at least a single dose of COVID-19 vaccine before entering the site on 05 October 2021.

Rising COVID-19 cases

INTERESTING READ:

Meanwhile, the Government, with assistance from the industry, intends to get as many people vaccinated as feasible.

The construction workers are mobile, and they have to move across different sites and travel long distances to work compared to other permitted workers. There were also concerns related to the sector’s compliance with public health measures and guidelines. Because of these reasons, the Government had no choice but to enforce lockdown to combat rise in cases, and allow the overall industry to properly adjust with the Chief Health Officer’s Guidelines, involving rising vaccination rates.

As of 21 September 2021, Australia had a total of 19,478 COVID-19 cases. Out of these, 13,208 cases were from New South Wales, and 6000 cases were from Victoria.

Also Read: Victoria enforces fourth lockdown as COVID-19 cases spike

Government to engage with Construction industry to vaccinate more people

Red Flag from the Construction Industry

Few days back, the Construction industry warned regarding the catastrophic outcomes if the lockdown in New South Wales gets extended. It highlighted that the lockdown could cause high numbers of buildings to fold. It could also have an impact on the mental health of the workers.

The property development industry seems a little worried about small building businesses, small trade contractors, and supply businesses. They believe that a two-week lockdown would significantly impact the cash flow of small businesses, Victorian families, and also on home buyers. Many small businesses currently deal with price increase and supply chain issues. The extension in lockdown would further hit their incomes.

Impact of Lockdown on Real Estate and Other Industries:

On 21 September 2021, a marginal impact was seen on S&P/ASX 200 Financial-x-A-REIT sector. The index slipped by 0.428% and settled at 7307.7.

However, the announcement did not impact the performance of other indices listed on ASX. Most of the indices ended the day’s trade in the green zone.

Bottom Line

Despite the Government prioritising safety and people’s lives amid rising covid-19 cases, the property development industry is worried about the impact of the lockdown on cash flows of small businesses and Victorian families resulted in protests.


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