Construction industry warns of mass layoffs, housing delays

Amid the global fuel crisis, construction costs are soaring for some materials by up to 50 per cent. The industry says thousands of businesses - and Australia's housing targets --  are at risk of collapse without urgent government intervention.More InformationFeatured: Graeme Collins, home builderAndrew Mahar, civil contractorNicholas Proud, Civil Contractors Federation CEOSaul Eslake, economistCreditsSara Tomevska, ReporterImage DetailsAmid the global fuel crisis, construction costs are soaring for some materials by up to 50 per cent.(ABC News: Luke Bowden)Program:More from AMTranscriptRachel Mealey: Well, amid the global fuel crisis, construction costs are soaring, with the price of some materials up by 50 per cent. The industry says thousands of businesses and Australia's housing targets are at risk of collapse without urgent government intervention. Political reporter Sara Tomevska has more.Sara Tomevska: In Pyalong, about an hour north of Melbourne, Graeme Collins is building his family's dream home. But in the last six weeks, the cost of construction has risen dramatically.Graeme Collins: So the budget just for the earthworks was under $30,000. That's doubled. That's before we even start doing a slab or the house build or anything else.Sara Tomevska: Do you have a final estimate of what it might all come to?Graeme Collins: Yes, and it will be an extra $120,000.Sara Tomevska: And that's with a fixed price contract for the builder.Graeme Collins: I feel very sorry for ...