High-rise farce as federal government balks at flammable cladding ban

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By Leith van Onselen

Last week, it appeared that we might actually see some belated action by our politicians to ban the importation and use of flammable cladding similar to the type used on London’s Grenfell apartments, which erupted into a fire ball earlier this year torching at least 80 people. Here’s how The Guardian reported the issue on Thursday [my emphasis]:

Building ministers will consider a ban on the importation of combustible aluminium composite panels…

The ban is one of several measures on the agenda to toughen up building standards in Australia when the state and federal ministers responsible for building meet on Friday.

A Senate inquiry into dangerous building products has recommended a total ban on the importation of the panels, which have a polyethylene core between two sheets of aluminium, as a matter of urgency…

The ministers are due to meet on Friday amid growing concerns that Australia’s flexible building code, combined with the switch to private certification by engineers employed by the developer, have undermined building standards…

In NSW more than 1,000 buildings have been identified… Victoria… has identified 900 buildings that may have cladding…

The ministers will also hear an update from Dr Peter Shergold, the former bureaucrat heading a federal assessment of the effectiveness of compliance and enforcement systems for the building and construction industry.

The paper says: “They [Shergold and his team] are also mindful that media attention and public interest on cladding and its flammability is fuelling concerns about the failings of Australia’s building systems and are undertaking the assessment in a manner that acknowledges the need to manage ‘unrealistic’ expectations of the media and the public”…

The paper notes that the code is currently “performance-based”, which means if builders can demonstrate that the product – combined with other measures, such as sprinkler systems – meets the standard, it is permitted.

But the assessment is often made by private certifiers who are paid by the developer.

True to form, however, the Turnbull Government has elected to do nothing:

The Turnbull government is again resisting calls to ban the importation of flammable cladding, saying scaring people “is not the answer”…

…assistant industry minister, Craig Laundy… said that border controls on dangerous, combustible cladding products were neither practical nor possible and it was already illegal to use the material on high-rise buildings so the law just had to be enforced.

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This inaction comes despite the Senate inquiry into dangerous building products recommending a total ban on the importation of the panels as a matter of urgency.

It also comes despite the Property Council supporting a total ban:

Documents obtained by the Guardian show the push is being supported by the Property Council of Australia, whose members include large developers but also major building owners, who now face potentially massive bills to replace unsafe cladding.

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As does the NSW State Government:

The NSW government is “disappointed” the commonwealth won’t ban the importation of flammable cladding of the type involved in London’s Grenfell Tower disaster…

NSW Better Regulation Minister Matt Kean on Saturday said stronger action was needed to stop the sale and import of the unsafe building product…

And the Queensland State Government.

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The federal Labor opposition also wants the product banned:

The opposition leader, Bill Shorten, said imports of polyethylene cladding ought to be blocked and has committed Labor to doing so if it wins government.

In a report on Friday, ABC host, Sabra Lane, claimed some of Craig Laundy’s Coalition senators had warned, after hearing evidence from the building industry, that the national construction code was being breached on thousands of building sites:

SABRA LANE: But Government members, your own colleagues on a parliamentary committee, point out that they’re concerned that this code is not being complied with; that it’s being breached on thousands of sites.

Why is the code a solution, when clearly it is being ignored or wilfully flouted?

CRAIG LAUNDY: Because that’s the law and the role of law-makers is to make the law and also enforce the law. And that’s why…

SABRA LANE: But clearly the law is not working here if thousands of high-rise buildings are using it?

CRAIG LAUNDY: And that’s why I’m meeting – we come up nationally with a construction code. The enforcement of it is done by my state and territory colleagues. That’s why today we have my fourth meeting in the last 12 months…

SABRA LANE: Sorry, Minister: you might be convening meetings but nothing appears to be actually happening.

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What we have here is a classic case of neo-liberalism gone mad.

In the rush to slash evil ‘red tape’ (i.e. health and safety rules), the government effectively watered-down the construction standards and handed over compliance to the developers themselves.

This has been a recipe for disaster, facilitating the creation of a shonky industry whereby greedy developers and builders have make out like bandits selling thousands of dodgy apartments and other structures to feed the population ponzi, all with the blessing of lax building regulators and policy makers.

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Now, apartment owners are facing hefty remediation bills to bring their properties up to code, or worse risk being torched to death as they sleep.

It’s market and regulatory failure of epic proportions that’s more akin to a dodgy developing country.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.