Neil Mitchell fears Probuild is ‘the canary in the coal mine’

Neil Mitchell fears the demise of building giant Probuild, which has been put into administration, is a warning of what’s to come.

Probuild and several other businesses owned by the WBHO Australia Group are in administration, with the parent company blaming Australia’s COVID-19 approach for the closures.

Tradies arriving at worksites for major projects in Melbourne, Sydney and Brisbane are being sent home today.

“The Australian government’s hardline approach of managing COVID-19 through a combination of border restrictions, snap lockdowns and mandatory work-from-home regulations for many sectors, has had a considerable impact on property markets,” South African parent company Wilson Bayly Holmes-Ovcon Limited (WBHO) said in a statement.

Neil Mitchell fears this is “the canary in the coal mine”.

“They name lockdowns, they name uncertainty, they name harsh policies, they name border restrictions,” the 3AW Mornings host said.

“If this company is staggering that means jobs, it means money, it means projects cancelled or stopped mid-build. You’d have skyscrapers standing there half built for years.

“I’m told … other major construction companies are facing similar problems.”

Press PLAY below to hear why Neil Mitchell is concerned

Economist and director of research at the Institute of Public Affairs, Daniel Wild, says Probuild’s demise is a symptom of a much bigger problem.

“Just take a walk down Collins Street, take a walk down Bourke Street, this is not just a story in the construction industry and this is not just a story about Probuild. This is what lockdowns and restrictions have done to us,” he told Neil Mitchell.

“This is the hangover that was almost an inevitable result of the uncertainty that has been imposed.

“Business investment as a share of our economy is now the lowest it’s been on record … and this is what declining business looks like when the rubber hits the road.”

Press PLAY below to hear more about the issues Mr Wild expects we’ll see more of in coming months