Local builders are being stung by the desperate shortage of timber, which is holding up the building of homes, threatening the viability of smaller builders and costing jobs for tradies and apprentices according to Local Member of Parliament Tony Piccolo.

The chronic shortage of structural pine across South Australia will place between 4000 and 5000 jobs at risk, according to the Master Builders Association (MBA).

“I have been told that timber suppliers in this state are at crisis point. Many small companies simply cannot obtain supply, or will be waiting 6 to 8 weeks leaving projects in limbo,” said Mr Piccolo.

“The Homebuilder grants program has placed additional pressure on the industry, with South Australia having an enormous uptake. SA had the highest per capita uptake in the nation. Just under 14,000 applications.”

“Local builders tell me that the government stimulus package is having a negative effect on small building companies due to lack of supply.”

“The price of timber has increased by 15 per cent over the last 12 months as a result of a lack of action by the Marshall Liberal Government and in some cases the price rises have been much higher.”

The Marshall Liberal Government’s attempted rescue package has been criticised by the industry and labelled as unsustainable.

Morgan Sawmill, outside of Jamestown, has been staring down the barrel of closure since it was unable to secure more logs from Forestry SA, which could cost the region 75 full-time jobs.

The government announced it had secured an agreement from the Bundaleer Forest Management Group to supply the sawmill for two years.  However, Morgan Sawmill rejected the offer due to concerns it would deplete the Bundaleer Forest.

SA Labor is calling on the Marshall Liberal Government to provide a freight subsidy in the upcoming budget to ensure there is enough timber in the market.

“The Marshall Liberal Government must commit to a freight subsidy to bring timber from Kangaroo Island to the mainland, to address a chronic shortage of structural pine used in the construction of houses across South Australia,” said Mr Piccolo.

Gawler Carpenters and Joiners (G C & J) has backed calls for a freight subsidy after experiencing delays of up to four months for timber for current construction projects.

“Big builders tend to have well developed supply chains. Unfortunately, the smaller builders often do not,” said Mr Nathan Shanks from GC & J construction.

“Big well-known builders are demanding timber suppliers serve them first leaving smaller builders in an uncertain situation.”

“The MBA says there is currently a five-month delay for timber roof trusses.”

Kangaroo Island Plantation Timbers (KIPT) has enough timber to construct 10,000 homes in South Australia but needs assistance from the State Government. Timber needs to be transported off Kangaroo Island and taken to the mainland for processing before being made available for construction.

State-wide up to 100 small businesses and 5000 jobs in the housing construction industry are at risk if this freight subsidy is not introduced.


Concerned local builders and suppliers are urged to contact Tony Piccolo on 8522 2878 or email: light@parliament.sa.gov.au.