New row hits controversial Construction Industry Training Board over fee blunders
A taxpayer-funded board that collected more than a million dollars in unnecessary levies was allegedly told about the issue years ago.
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An embattled taxpayer-funded agency at the centre of a levy blunder is embroiled in a political row over claims its former board was told about the issue years ago.
The Advertiser revealed the Construction Industry Training Board faces repaying at least $1.3m in “unnecessary levies” it collected.
While homeowners or builders pay a special industry training fund levy on contracts above $40,000, anything built on federal land is exempt. At least 63 projects built over the past six years are in question.
While a new board, appointed last month, has discussed projects worth up to $2.3m, a secret inquiry has excluded any contract older than 2014 due to a statute of limitations.
Officials are now negotiating with affected parties about either refunds or the board keeping money as a “gesture of goodwill”.
The levy, along with government funding, helps attract, train, support and retain building or construction apprentices.
On Monday, Innovation and Skills Minister David Pisoni blamed the former board for failing to act.
“It’s my understanding that former Labor MP and former chair Gay Thompson was made aware of these transactions,” he said.
Ms Thompson was chairwoman between August 2014 and November 2018.
Mr Pisoni added: “On coming to government, we worked with the crossbench to update legislation to reflect modern board practices.”
He has also ordered a formal briefing, months after instigating a spending audit.
He called on deputy Labor leader Susan Close to clarify “just what she knew about the wrongful levy collections” when reappointing Ms Thompson in August 2017.
Dr Close said: “I am not aware of any basis for (the) claims.”
Ms Thompson refused to comment: “I have nothing to say, goodbye.”
The blunders emerged after controversies over lavish board spending, including billing taxpayers $47,000 for an anniversary dinner for 110 people and interstate travel, as well as rows over members’ experience.
Mr Pisoni said the board’s interim chief executive, former PwC director Derek Clarke, had audited “historical financial practices” and returned focus to supporting construction sector skills.
Internal communications is now being overhauled to “better explain when the levy applies, in order to avoid any further confusion in the future”.
The current 11-member board comprises former union chiefs, vocation and education officials as well as industry leaders.
Its more than $200,000 a year chief executive, Marie Paterson, and presiding member, Peter Kennedy, who was paid $18,574 annually have both left this year.
New chairwoman Maree Wauchope’s relevant industry experience is also under fire just weeks after her appointment last month to a two year term.