Housing Minister slams Victorian construction shutdown

The Victorian government declared that construction would shut down in Melbourne and other areas in lockdown for two weeks from 11:59pm on Monday night, citing concerns around case numbers, transmission risk and reduced compliance.

All construction projects in metropolitan Melbourne, Ballarat, Geelong, Surf Coast Shire and Mitchell Shire have been temporarily shuttered, with a limited exemption for workers to attend to the sites in the case of an emergency or to perform urgent and essential work to protect health and safety.

There was also an amnesty allowing a limited number of workers to close up sites.

Before they reopen on 5 October, all sites will be required to demonstrate compliance with health orders, including a requirement for workers to have received at least one dose of the COVID-19 vaccine.

All construction workers will be required to have had at least one jab, from 11:59pm on 23 September.

The government is also continuing on a priority vaccine blitz for the industry until 26 September, allowing walk-ins for workers at key sites.

Victorian Minister for Industrial Relations Tim Pallas commented: “We’ve been clear: if you don’t follow the rules, we won’t hesitate to take action – we have seen widespread non-compliance across the industry and that’s why we’re taking necessary steps to protect every single Victorian.

“We put the industry on notice just a week ago, we have seen appalling behaviour on site and on our streets, and now we’re acting decisively and without hesitation.”

The construction ban followed violent protests at the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) Victorian branch office on Monday, which the union claimed were infiltrated by Neo-Nazis.

More protests followed on Tuesday.

There are more than 320,000 Victorian workers in the building and construction industry, representing 9.3 per cent of Victorian jobs.

Minister for Housing and Assistant Treasurer Michael Sukkar criticised the industry shutdown, saying: “Victorians should not be made to suffer as retaliation for the actions of violent protestors in Carlton”.

He also labelled it a “chaotic and confusing response” from the state government.

“Not to mention the first home buyers, renovators and home builders who will suffer financially as a result of their projects being delayed and lives disrupted,” the minister said in a statement.

“And sadly, all Victorians will suffer, with the economic cost of this decision estimated to be $2.2 billion in construction activity and almost $640 million in lost wages over two weeks.

“Having suffered some of the longest lockdowns anywhere in the world, the last thing Victorians need at this time is more distress and chaos.”

Similarly, the Housing Industry Association (HIA) called the government decision “disappointing and challenging” for the industry.

HIA Victorian executive director Fiona Nield said it would affect businesses and workers, but also many families whose projects will now be stalled.

“The closure presents enormous difficulties for at least 30,000 small scale residential building projects currently under construction, each of which will now need to be made safe and secure during the shutdown period,” Ms Nield said.

[Related: Lockdown-weary Melburnians head to regions: CBA]

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

Previously, she reported on banking, financial services and wealth management for InvestorDaily and ifa.

You can contact her on This email address is being protected from spambots. You need JavaScript enabled to view it..