QBCC blasted for suspending 2640 contractors instead of issuing fines

Queensland’s building watchdog could have issued $275 fines instead of suspending the licences of 2640 contractors and destroying their livelihoods, according to industry insiders.

Queensland’s building industry watchdog could have issued the equivalent of a speeding fine to 2640 contractors who instead had their licences suspended last month, destroying their livelihoods.

It has also emerged that the beleaguered Queensland Building and Construction Commission may have breached its own regulations in taking the harsh action ahead of the holidays.

The QBCC, which only suspended 66 operators in the last financial year, took the drastic step against the 2640 small traders for failing to comply with minimum financial requirements.

But former QBCC licensing manager Graham Easterby, one of a large number of senior executives who resigned this year, said the agency should have issued $275.70 fines for what he described as merely “a failure to lodge a paperwork offence’’.

“Before taking away the livelihoods of so many small businesses, you would think that the regulator would have considered that they were all still paying their debts and no real financial risk to anyone,’’ said Mr Easterby, a former Australian Federal Police officer who spent three years at the QBCC.

“There is also a trade contractor shortage in the industry at the moment. Also concerning is the mental health impacts on the suspended licensees and their families, particularly just before Christmas time when suicide rates are always at their highest.”

Graham Easterby

Records show that virtually all of the offences investigated and actioned by QBCC, outside of informal warnings, result in a “penalty infringement notice” fine.

That’s the case even for serious offences, such as unlicensed contracting or failing to rectify building work, which often cause substantial harm to the public.

“It beggars belief that the QBCC would use its licensing powers in such a heavy handed way rather than just fine the licensees for what is a minor offence,’’ one industry executive said.

“The QBCC routinely issues penalty infringement notices for far more serious offences where consumers and contractors were often seriously financially harmed.’’

Critics also allege the QBCC acted beyond the powers it has under the QBCC Act.

The legislation “clearly envisages that a licensee who commits an offence…should first be convicted of the offence before having their licence cancelled,’’ one former insider said.

“The QBCC should follow the processes for offences provided for in the Act. To avoid these processes by using ‘back-door’ licensing powers is not appropriate conduct for an industry regulator.”

A QBCC spokesman refused to answer a question Thursday about why suspensions rather than fines were imposed but he maintained the agency “has at all times acted within the law’’.

“When homeowners contract a tradesperson for building work, they deserve to have confidence that the tradesperson has the financial means to finish the job,’’ he said.

“There are a total of 53,978 licensees in this financial category and more than 95.5 per cent have lodged their financial information.’’

Public Works and Procurement Minister Mick de Brenni

A spokesman for Public Works and Procurement Minister Mick de Brenni declined to comment. “This is an operational matter for the Commission,’’ he said.

Asked about the suspension crackdown, Shadow Minister for Housing and Public Works Tim Mander dismissed the QBCC as “a rudderless mess’’.

“You can’t make this stuff up….They can’t even follow their own rules. Is it any wonder confidence in our state’s building watchdog has hit rock bottom?’’ he said.

This latest controversy about suspensions follows a wave of criticism directed at the regulator this year, including allegations of improper interference by the board in regulatory matters, dysfunctional decision-making and a toxic work culture.

In response to this deluge, Mr de Brenni announced an external review of the QBCC last month.

It’s to be headed by Jim Varghese, a former government department director-general who now serves as a director of Springfield City Group, and is set to deliver a report by the middle of 2022.

“The QBCC’s regulatory approach clearly needs to be looked at,’’ one critic familiar with the agency said.