Senator Nick Xenophon demands new protections for subcontractors after Senator Bob Day’s building business goes into liquidation

NICK Xenophon has demanded more protection for subcontractors after the collapse of fellow senator Bob Day’s building business.

SENATOR Nick Xenophon has used the collapse of Bob Day’s building companies to demand the Federal Government introduce new laws to secure payments to subcontractors.

The Nick Xenophon Team could vote against the re-establishment of the building watchdog, the Australian Building and Construction Commission, unless new protections for subcontractors are introduced.

All the latest: Full coverage of the Bob Day decision

Senator Xenophon said building company customers are usually protected by insurance but subcontractors had few protections when a large construction business went bust.

“This terrible collapse highlights the urgent need for security of payments legislation in this country so that subbies aren’t left in the lurch,’’ he said.

“And it reinforces my view that we can’t have ABCC legislation unless you’ve also looked at security payments legislation in this country.’’

Senators Xenophon and Day rarely saw eye-to-eye in Parliament but Senator Xenophon said he was very sorry that his former colleague was quitting the Senate due to the failure of his businesses.

“I had a courteous relationship with Senator Day. Philosophically, we have a very different view,’’ Senator Xenophon said.

“I’m very sorry for him, for his family, for his employees and for all the subcontractors and homeowners involved.’’

The Government was counting on the votes of the three Nick Xenophon Team senators and Senator Day to get the ABCC bill through the Senate.