Felmeri building collapse fallout: SA govt’s lifeline blows out to $3.5m

A taxpayer-funded lifeline to save customers of collapsed Felmeri building group has blown out to $3.5m, amid a call for rates to be waived to ease cost of living pressures.

MP Tom Koutsantonis has called on the Marion council to waive rates for Felmeri customers. Picture: NCA NewsWire / Naomi Jellicoe

A taxpayer-funded lifeline to save customers of collapsed Felmeri Group has blown out to $3.5m amid a call for rates to be waived to ease cost of living pressures.

Infrastructure and Transport Minister Tom Koutsantonis said the Marion council had “a lot to answer for” over the failed building works at O’Halloran Hill.

“We’re spending nearly $3.5m now to fix that,” Mr Koutsantonis said.

“They approved those houses being built before infrastructure was put in place, and then of course Felmeri went under.

“So what we’re doing now is having to retrofit a lot of the infrastructure (that) should be put in place before any Lands titles were issued.

“We’re having to go back and do the work that should have been done.”

The government in August committed more than $1m to complete an access road that would enable works to progress.

Unfinished development in O’Halloran Hill. Picture: NCA NewsWire / Naomi Jellicoe

But Mr Koutsantonis revealed that cost had since blown out to $3.5m.

“It would be nice if the council recognised that these people have been through enough, waive their rates, give them a bit of cost of living pressures ease,” he said.

“Quite frankly, the council has not delivered what it should have delivered.

“I am very disappointed in how the council has conducted themselves and quite frankly, they should be ashamed of themselves.”

Mr Koutsantonis said “residents have every right to be mad about it”, and revealed works had found cabling not dug deep enough and there were no provisions for guttering or stormwater at the site.

Marion Mayor Kris Hanna told 7News it was not a council planning issue.

“The problem has always been the fault of the builder,” Mr Hanna said.

“Council can’t spend ratepayers money to improve private property.”

The council was contacted for comment.