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Creation Date: Mon, 12 Sep 2011 GMT

Construction work hit hard in Tasmania

The Tasmanian building industry says about 1,000 construction jobs have been lost amid uncertainty about Gunns' pulp mill.

The Master Builders Association says the industry is struggling now that federal stimulus projects have been completed.

As well as non-residential building approvals falling 42 per cent last financial year, the association says uncertainty around the mill project has stalled investment in the north.

The association's Michael Kerschbaum says his members are now banking on Gunns building its $2.3 billion mill.

There is also concern over the abolition of a scheme to reward businesses for hiring apprentices.

The State Government scheme was axed in June.

Royce Fairbrother, of the Fairbrother group, says the company usually hires 25 apprentices a year.

"If any at all, I think five or six would be our maximum and that would continue into the long term."

Cunic Constructions' Bill Wedd says abolishing the rebate could lead to a skills shortage.

Mr Wedd says demand is so low he can not afford to take on any new workers.

"Domestic is probably down at least 50 per cent our commercial's down probably 40 to 50 per cent."

"It's making everybody in the industry think very hard about who they train and how they train them."

Michael Kerschbaum says the construction industry is paralysed until the issues are resolved.

"The current state of play is certainly the worst scenario for the industry."

Premier Lara Giddings says the Government is not looking to re-introduce the payroll rebate for apprentices at the moment.

"We made a decision to invest in our payroll exemptions to encourage jobs to be put on by businesses across the board and the apprenticeship scheme only really assisted in the construction industry."

"It is an issue which I have undertaken to look at again in the lead up to the next budget process but we won't be reversing it here," she said.

source: http://www.abc.net.au/news