The Launceston Chamber of Commerce has called for urgent government action before soaring building surveyors insurance dims the "shining light" that is the state's construction industry.
Launceston surveying company Protek this week announced it would cease certifying buildings from July 19 due to a 220 per cent rise in premiums and 900 per cent excess jump - fueled by insurance company attempts to manage risk after a recent spate of apartment block defects and cladding issues nationwide.
Launceston Chamber of Commerce executive officer Neil Grose said the escalating costs would "severely impact" Northern Tasmania's construction industry unless a solution can be found, as surveyor certifications allow buildings to be occupied once completed.
"Eight per cent of Australia's GDP is based in the construction industry with significant financial exposure to Australia's banking sector - if buildings aren't able to be certified in a timely or cost effective manner then it could have deep economic implications," Mr Grose said.
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Building and Construction Minister Elise Archer said she had been in discussions with the state's building industry and would take the issue to the Building Minister's Forum in Sydney this week, though the matter had arisen due to national and international factors "beyond Tasmania's control".
"Tasmania is committed to continuing to work with other states and territories to ensure a national coordinated approach," Ms Archer said.
Federal Industry Minister Karen Andrews told RN Breakfast on Tuesday that the insurance price spike came down to state government's failing to enforce their building regulations and said she would push for a harmonisation at the forum.
Ms Andrews added: "There has been nothing that has prevented the states from working together to harmonise building regulations, but they have shown little to no interest in doing so."
"[The states] have to convince the insurers that they are taking appropriate action and that the risk is going to be lower."
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