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Brick levy - swings and roundabouts

A proposed new levy on brick purchasers could help alleviate the shortage of skilled labour being xperienced accross the construction industry.

Consumers may end up paying more for bricks and concrete masonry products, but should be able to save through reduced delays in construction, with the introduction of a new levy which will go towards employing more skilled bricklayers.

The Australian Competition and Consumer Commission (ACCC) announced this week that has issued a draft determination allowing manufacturers of clay bricks and concrete masonry products to impose levies on the sales of their product.

"The ACCC proposes to allow the Australian Brick & Blocklaying Training Foundation, the Clay Brick and Paver Institute, the Concrete Masonry Association of Australia and their members, to impose a levy on sales of clay bricks at a rate of $2 per thousand bricks, and on sales of concrete masonry products at a rate of 10 cents per square metre", ACCC Chairman Graeme Samuel said.

"The funds will be used to promote bricklaying to young people and to provide subsidies to employers of apprentices, in order to address a shortage of skilled bricklayers", Mr Samuel said, adding that this would in turn address rising costs and delays in the construction industry.

"The applicants advise that the levies are likely to add $16 - 20 to the cost of building an average brick house. However, reduced delays in construction that result from shortages of skilled bricklayers will produce savings for home buyers", he said.

Mr. Samuel said that the new authorisation creates a national scheme, based on a Victorian model which produced encouraging results and will replace similar existing schemes in most jurisdictions.

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