Bob Day quits Senate as company Home Australia collapses
UPDATE: ROB Brokenshire has confirmed he is also standing for the vacancy created by Bob Day’s shock resignation, as desperate homeowners and tradies demand answers after the collapse of his Adelaide-based building empire.
- ANALYSIS: How this will affect the Senate
- THE SENATE: Bob’s exit a shock, so what now?
- THE VICTIMS: Angry tradies descend on office
- THE COLLAPSE: Two mistakes led to bankruptcy
- IN-DEPTH: Long Day’s journey into night
ROB Brokenshire has confirmed he is also standing for the vacancy created by Bob Day’s shock resignation, as desperate homeowners and tradies demand answers after Malcolm Turnbull’s key crossbench supporter, Family First Senator Bob Day, sensationally quit.
An emotional Mr Day vowed to pay back every cent he owes to shocked customers as the Adelaide-based building empire he built over decades crumbles. He will lose his family home at Houghton as well as his hard-won Senate spot.
He said he was “naturally devastated” and “incredibly sorry”.
As the company started to collapse and a critical deal fell through, families had been left waiting for their homes to be built, were out of pocket, or dealing with defects.
Senator Day gives Mr Turnbull crucial support on industrial reform legislation in a hung Senate where nine of the 11 crossbenchers are needed to pass laws that Labor and the Greens oppose.
Mr Turnbull is turning up the heat on unions this week, attacking them over corruption claims and intimidation threats, as he prepares to put legislation before Parliament that will curb their power.
Back in the Day: The Australia Bob wanted to build
Parliament resumes debate on the Government’s Registered Organisations legislation on Wednesday, and the Government will later try to get the Australian Building and Construction Commission legislation through.
Senator Day was a supporter of those reforms, but SA will now get a new senator. The frontrunner is Senator Day’s chief of staff Rikki Lambert.
This morning, Family First SA MLC Rob Brokenshire confirmed he was also running to fill the Senate vacancy.
Mr Brokenshire said he believed his experience as a state MP would be an asset to SA and Family First in Canberra.
“I’m running because South Australia needs a senator that is able to work with other senators to get things running in a state that is facing some very difficult times,” he said.
“I think my approach is to use all my energy to work on the issues that affect the state and the nation.”
Mr Lambert — who accidentally gave a journalist private pay details of ABC staff while working for Mr Brokenshire — told The Advertiser he would nominate when the seat became available.
“I am nominating as the candidate for the seat that will ultimately fall vacant,” he said.
Kenyan-born Lucy Gichuhi who ultimately ran in the No. 2 spot at the election, said it was “too early” to say if she would run.
“I’m not in a position to respond to that at the moment,” she said.
Fellow Family First MLC, Dennis Hood, said he might be interested in a tilt at some point but ruled out running for the casual vacancy.
As a conservative party, Family First tends to support Coalition policies; however, they are in no way bound and a new senator could bring a very different approach to negotiation.
Senator Day on Monday announced “with great sadness” that his Home Australia Group, including SA’s Homestead Homes, was going into liquidation.
He wrote that he had sold a 75 per cent stake to Philippines company Goshen Capital Resources to help get the group through its difficulties. But Goshen failed to come up with the money and Senator Day said a document supposedly proving the funds were on their way was “fraudulent”.
“I am naturally devastated by what has happened and will do whatever I can now to assist those affected by this closure,” he said, adding that all the homes were covered by insurance.
“Creditor liabilities greatly exceed our assets so we will also lose our family home,” he wrote.
“As for my role as a Senator, I will of course resign. I am incredibly sorry for the pain, stress and suffering I know this will cause.”
Senator Day said his two big mistakes were buying Huxley Homes — the NSW branch of the business — and “going into politics without putting in place a proper management structure for the business”.
Auditors warned him last year that Huxley Homes was worth nothing and Senator Day conceded he had paid too high a price for it in 2003.
He did not name a date for his resignation to take effect. Once it does, the party will chose a nominee for the casual vacancy. That person will then have to be endorsed by a joint sitting of State Parliament.
Senator Day, a prominent name in SA for his building business, ran as a Liberal Party candidate in 2007 before joining Family First to run for Mayo. He was elected as a Senator in 2013 and re-elected at this year’s election as the state’s 12th Senator.
Over the years, questions have been raised about Senator Day’s and his company’s donations to Family First as the company struggled; The Australian Electoral Commission was asked to do a compliance review but in September this year said any disclosure discrepancies would be raised directly with the party.
The Greens say almost a million dollars was donated and that some of it was not properly recorded.
The financial affairs of Home Australia would be investigated, with the results to be sent to the Australian Securities and Investment Commission.
Creditors meetings for each of the five Home Australia companies would be convened for November 4, or possibly earlier.
Family First at a loss without main breadwinner
LIKE a family without a main breadwinner, Bob Day’s political party has been deprived of its only senator, biggest donor and federal chairman.
But Family First state leader Dennis Hood said the South Australian-based party would “pick ourselves up” and continue without him.
“No individual is bigger than the party,” Mr Hood said.
Senator Day’s support for the conservative minor party he joined in 2008 has included millions of dollars’ worth of donations and loans.
He donated $557,000 to Family First between 2013 and 2015 and the party declared in 2013 that it owed him $1.47 million.
Family First, which was founded by former Assemblies of God pastor and state upper house MP Andrew Evans, is now at a crossroads.
Senator Day had a relatively low public profile, which placed Family First at a disadvantage when competing against the Nick Xenophon Team.
Senator Day only just manage to scrape back into Parliament at the July federal election after Family First received about 30,400 group votes in SA — fewer than One Nation.
The fact that the party will be able to nominate a new senator and has two state upper house MPs provides with a base to reconnect with voters.
Mr Hood said the party was determined to rebuild after the state executive met to choose a replacement for Senator Day.
“We’ll do that by having a meeting, choosing a replacement and fighting to win the support of South Australians and Australians … at the next election,’’ he said.
Family First’s political demise was widely predicted when first-term Victorian senator Steve Fielding lost his seat at the 2010 election.
The party subsequently had no federal representation until Senator Day was elected in 2013.
Although they disagreed on social issues such as same-sex marriage, Senator Day worked closely with NSW Liberal Democrat Senator David Leyonhjelm on economic matters.
Senator Leyonhjelm praised Senator Day’s commitment to budget repair.
“We were the only two senators in the last parliament determined to help the government balance the Budget,’’ Senator Leyonhjelm said.
— Peter Jean
Who is Bob Day?
Robert “Bob” John Day, AO
Born: July 5, 1952, Manchester, England.
Emigrated: In 1963.
Grew up: In a Housing Trust home at Gilles Plains and attended the local high school.
Married: Bronte, May 16, 1981. They have three children, John, 28, Stephen, 26, and Joanna, 24.
Lives: Brick veneer house, at Houghton in the Adelaide Hills, which he built in 1980.
Study: Qualified as a science technician from SA Institute of Technology (now UniSA).
First job: Lab technician at Pooraka in the Highways Department.
First house: Built in 1979.
Business: Registered Homestead Homes in 1983. In 1996 founded Home Australia which owns Collier Homes in Western Australia, Newstart Homes in Queensland, Ashford Homes in Victoria and Huxley Homes in NSW.
Politics: Liberal (1987-2008),
Family First (2008-present).
Political career: Elected to the Senate for Family First Party at the 2013 federal election. Took office on July 1, 2014. Re-elected at the 2016 double dissolution election as the 12th and final South Australian senator.
Political platform
Industrial relations: Supports changes toindustrial relations systemthat remove “barriers of entry” to paid employment for young people.
Tax: Seeks reduction in the overall tax base.
Education: Greater choice for parents to choose their child’s educational institution. Wants a “best model” vocational education and training system.
Housing: Supports housing affordability for new and low income home buyers.
Migration: Supports policies to increase immigration from those groups with a “high likelihood of finding employment”.
Defence: Argues the Australian Defence Force needs greater firepower.
Monarchy: Supports it.
Climate change: Does not believe in human-caused climate change and opposed attempts to reduce carbon dioxide
Same-sex marriage: Opposes it, saying. “I believe in traditional marriage, which has stood the test of time.”
Federalism: Wants powers returned to the states to redress the “balance of power”.
Other roles
Past president of the Housing Industry Association, director of the Centre for Independent Studies, chairman of the Institute of Public Affairs’ Great Australian Dream Project,
chairman of the Bert Kelly Research Centre, secretary of the HR Nicholls Society, member of the National Work for the Dole Advisory Committee.