Premier Peter Malinauskas vows ‘aggressive’ fix to Housing Trust tradie repair pay scandal as government spending falls $10m

Official figures show millions less was spent on public housing repairs last year as the state government promises to “fully investigate” the Housing Trust pay scandal.

Premier Peter Malinauskas vowed he would provide “aggressive” help to tradies ensuring overdue repair jobs were paid.

Taxpayers spent at least $10m less to fix crumbling public homes last year, official figures show, as the Premier vowed “aggressive” help for tradies to get overdue repair jobs paid.

The state government on Monday promised to “fully investigate” widespread failures an Advertiser investigation found with the almost $1bn SA Housing Trust maintenance contract.

Carpenters, electricians and plumbers are owed “significant sums” worth tens of thousands of dollars for 2023 invoices.

But amid a political fallout over what critics said was worsening the state’s dire housing crisis, more tradespeople told of their trauma with outsourced repair work.

Tradies, who declined to be named over fears for their businesses, told of being owed more than $100,000 while others sought medical help for “stress and anxiety”.

Admitting the delays were unacceptable, Premier Peter Malinauskas vowed an aggressive crackdown on government-appointed contractors.

“To say that it is unsatisfactory that tradies haven’t been paid in a timely way is an understatement,” he said.

“We will address (this) rather aggressively, particularly when it comes to the operations of the contractor.”

Premier Peter Malinauskas on Monday vowed “aggressive” action while Treasurer Stephen Mullighan (left) admitted he was “absolutely horrified” at The Advertiser’s revelations. Picture: Tom Huntley

New Housing Minister, Nick Champion, also called crisis talks with industry leaders to develop “better relationships” between authorities and contractors.

Figures tabled in parliament show the SA Housing Authority spent $97.1m last financial year on maintenance, compared to $107.2m in 2021/22, the state’s spending watchdog revealed.

Acting Auditor-General Ian McGlen told MPs that “performance issues are an important factor in the reduced spend”.

The authority said it was also during a move to new contracts.

He revealed that as of May last year there were 24,156 “overdue” orders but the government last night said that was now 13,524 as of April 30.

Treasurer Stephen Mullighan admitted he was “absolutely horrified” and “mortified” at The Advertiser’s “very disturbing” revelations that contradicted key Labor election promises.

He said the contract with lead repair supplier Spotless, “has a series of obligations” to ensure satisfactory work while treating small businesses and contractors “well”.

“We’re hoping to get this not only investigated but resolved as quickly as possible,” he said.

“I think every South Australian small business deserves to expect that they should get paid for the services they provide, particularly when they’re dealing with the state government.

“The fact that hasn’t happened in so many different circumstances is simply not good enough.”

He said government policy required invoices be paid within 30 days but proposed new laws would cut that in half to 15 days.

Government officials have refused to provide details about the financial penalties slapped on providers who deal with more than 500 maintenance requests a day.

Opposition Leader David Speirs condemned the “shambles”.

Damage to a Housing Trust home at Elizabeth South. Picture: RoyVPhotography

Where the walls have significant cracks. Picture: RoyVPhotography

Spotless Facility Services, a Downer Group subsidiary company that won $630m for an almost eight-year contract in 2022 for social housing maintenance services, has rejected allegations of systemic issues as having “no merit”.

A Spotless spokesman would not comment further last night.

Spotless covers Adelaide, Hills, Barossa Valley and Fleurieu Peninsula maintenance and RTC Facilities Maintenance (SA) manages the Western Country Far North.

Torrens Facility Management, which manages the Riverland and South-East, has not been highlighted as of concern and is not accused of wrongdoing.