Potential price gouging in the construction industry could be investigated after the South Australian government called on the consumer watchdog to intervene.The ABS has reported building costs rose by 3.8 per cent last quarterMinister for Housing and Urban Development Nick Champion has written to the Australian Competition and Consumer Commission , asking it review increased building costs and their impact on housing affordability.
Mr Champion said he did so with the support of the state's peak construction body, Master Builders SA, which also expressed concerns that rising costs could hurt the industry."These are big price pressures on the industry, and we’d like to see the ACCC take a role in making sure there’s not price gouging in this area."
Disruptions to global supply chains through COVID-19, the conflict in Ukraine, and lockdowns in China have caused prices to spike, but Mr Champion said he wanted to limit the impact to Australia. "When we get big price increases for a number of materials, that creates perfect conditions for people to price gauge, to increase margins, and we want the ACCC to take a role in monitoring that," he said.Labor MP Nick Champion is calling on the federal and other state governments to take action.
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