Housing Industry Association of Tasmania executive director Stuart Clues said the industry was being crippled by poor state and local government schemes.

However, Northern Midlands Mayor Kim Polley said councils no longer had any breathing space after continuous industry ``squeaking''.

Cr Polley said the shipping container home, featured in The Sunday Examiner yesterday, did not require council planning approval under section five of its planning scheme, because it was classified in a village zone.

``If shipping containers are the new entry level housing standard in Tasmania, then you can scrap the building code of Australia, local planning scheme and the energy efficiency code,'' Mr Clues said.

``You have got local council mandating everything from where your letterbox and front door go, yet we have a council here saying it is fine to stack seven shipping containers together and call it a house.

``Dealing with the local authorities is rated as one of the top obstacles for building in the state . . . and we have got double standards operating between legitimate builders and owner-builders and councils exercising an enormous amount of discretion as to what qualifies as a reasonable housing proposition.''

Cr Polley said the council would not approve any development that did not meet the building code.

``What people need to understand is that there has been a push in this state by particular bodies who have squeaked for a more simplified system for builders and developers that is consistent around the state,'' Cr Polley said.

``So now we have a planning directive four, which has been delivered to all councils, who are now concerned about rules regulating solar efficiency, building set backs, height and overshadowing and building materials.''

Master Builder's Association executive director Michael Kerschbaum, and builders Stuart Wilson and Chris Dell, supported Mr Clues's comments.

Mr Kerschbaum said while it was possible for a shipping container house to gain approval, the re-sale value could be adversely affected in 10 years' time, labelling it a false economy.