Launch of construction industry export group (CHEG)

9/7/93

Housing Ministers from 10 Asian countries will be invited to inspect Western Australia's construction industry as part of a new group's push into the $75 billion-a-year Asian market.

Housing Minister Doug Shave launched the Construction and Housing Industry Export Group (CHEG) at a breakfast briefing this morning, saying it would assist Western Australian companies to maximise export opportunities.

Mr Shave said CHEG was a result of last month's trip to Asia with Master Builders' Association housing director Gavan Forster, where he met Housing Ministers in Singapore, Thailand, Brunei and Indonesia.

He said the export group had attracted the support of some of the State's most respected and influential business leaders to form an executive council to oversee its operations.

CHEG Executive Council members include Mike Palmer, general manager of Plunkett Homes (WA) and a former Austrade commissioner; Dario Amara, general manager of Transfield Constructions Western Region; George Cugley, managing director of Midland Brick; and Geoffrey Crothers, managing director of the Geraldton Building Company.

Mr Shave said CHEG would be funded by the Master Builders Asociation which would provide $50,000 seed capital.

Once established, CHEG would be an independent unit operated by the MBA and funded through membership fees.

Mr Shave said that initially the State Government would assist CHEG to:

·         lobby for changes in taxation laws for companies seeking overseas clients;

·         host an inspection of WA building sites and manufacturing plants by 10 foreign Housing Ministers in September.

Mr Shave said the present tax system failed to provide any incentive for Australian companies to enter the international marketplace to promote their products and services to prospective clients.

"The current tax laws allow companies to offset their expenses when visiting existing overseas clients, but will not accept deductions when companies seek new business," he said.

"Most companies looking for export business find they are walking into a taxation minefield.

"I will be asking WA Premier and Treasurer Richard Court to approach Federal Treasurer John Dawkins to alter the tax situation."

Mr Shave said the State Government would invite foreign Housing Ministers to visit WA in September on behalf of CHEG.

Countries to be invited included Thailand, Singapore, Malaysia, Korea, Indonesia, Vietnam and Laos.

"The Ministers will inspect some of WA's housing and construction sites and manufacturing plants to see the quality of products and services this State has to offer," he said.

CHEG executive officer Gavan Forster said one of CHEG's immediate tasks would be to devise an effective marketing strategy for its members.

"Many WA companies have the qualifications to earn Asian dollars but without the support of a group like CHEG, they have not known how to penetrate the market," he said.

"Our group will provide the back-up, expertise and support to assist the housing and construction industry to capture the business it deserves in Asia."

Media contact: Brian Coulter 222 9595