QBCC cancels 1000 tradie licences for minor paperwork bungle

A shock move by the Queensland Building and Construction Commission will intensify delays consumers face in getting work done, a problem dramatically exacerbated after last month’s flood disaster

Queensland’s embattled building industry watchdog has just cancelled the licenses of nearly 1000 more tradies for a minor paperwork offence that normally attracts just a small fine.

The shock move by the Queensland Building and Construction Commission last week comes as consumers already face long delays in getting work done, a problem dramatically exacerbated after last month’s flood disaster.

It follows the controversial license suspension of 2640 contractors in December in a pre-Christmas blitz by the regulator, which only terminated 66 operators in the last financial year. Another 406 licenses were cancelled in January.

Internal QBCC correspondence seen by The Courier Mail reveals that 940 tradies had their licenses pulled last week for “non-lodgement of annual reporting financial information’’ due by the end of March 2021.

Public Works and Procurement Minister Mick de Brenni

But none of them had dudded creditors with unpaid bills or left property owners with defective or incomplete building work.

Most were small operators, with about a third doing less than $200,000 worth of work in a year.

Under the QBCC Act, failure to lodge an annual report notice is a minor offence that would ordinarily be expected to attract a fine of just $275.

Worse yet, the QBCC may have once again breached its own regulations. One former insider said the legislation “clearly envisages that a licensee who commits an offence…should first be convicted of the offence before having their licence cancelled’’.

Industry figures are baffled and outraged by the agency’s actions, with one critic slamming it for “losing the plot’’.

“The actions of the QBCC are completely at odds with the Queensland Government‘s urgent efforts to encourage interstate and international tradies to work in Queensland to address the state’s chronic shortage of tradies to deal with flood repairs,’’ a senior building identity said.

“Even prior to the floods, there was a shortage of tradies causing major industry issues, including delays in construction.’’

A QBCC spokesman defended the action taken against the tradies, noting that “the vast majority” of those working in the industry are operating within the rules.

“The QBCC has issued multiple reminders, including five formal statutory notices over the past 12 months to encourage these licensees to provide their annual reporting information, which they still failed to do,’’ he said.

“There are a range of regulatory options the QBCC can take under the QBCC Act. The suspension and cancellation process was outlined in the Annual Reporting Regulatory Guide as a possible option where licensees fail to comply with reporting obligations.”

A spokesman for Public Works and Procurement Minister Mick de Brenni declined to comment, describing the license cancellations as “an operational matter’’ for the QBCC.

But one industry insider said it was “madness’’ for the QBCC to take such draconian action when it had reissued a license to Adam Copping, a director of failed Trac Constructions who was convicted of fraud and had previously been slapped with a “lifetime ban’’. The firm collapsed with debts of about $20m in 2016.

“Given the spate of big company building collapses that have rocked the Queensland building industry in the last three months--none of which were picked up by the QBCC prior to their financial collapse--it seems crazy that the QBCC has diverted all of its regulatory efforts at targeting mum and dad tradies who pose no threat to the industry or consumers,’’ he said.

Tim Mander, the shadow Minister for Housing and Public Works

Opposition public works spokesman Tim Mander echoed the criticisms, slamming the QBCC for “having its priorities all wrong’’.

“While large building companies are collapsing, owing hundreds of thousands of dollars to subcontractors on a too regular basis, the QBCC are targeting mum and dad builders for not submitting paperwork,’’ Mr Mander said.

“With flood recovery well underway, Queensland needs every qualified tradie on the tools, so people can get back in their homes.”

Meanwhile, the QBCC announced late Thursday that it has delayed the implementation of the next two phases of a scheme aimed at ensuring security of payment for building contractors.

Since the start of the year, certain private sector and government contracts valued at $10m or more have been required to use “project trust accounts” despite the fact that common accounting software cannot generate the payments.

The threshold for contracts was then supposed to drop to $3m on July 1 and down to $1m on January 1 2023. But each of these kick-off dates has now been pushed back for nine months.

Critics, including peak bodies such as Master Builders, complain that the laws are flawed, contain loopholes and will create a significant administrative burden on companies at a time when the industry is already struggling.

A QBCC spokesman declined to comment about the delay.

But Mr de Brenni said stakeholders had asked for more time as the industry reels from Covid-induced shortages, the overheated HomeBuilder grants and now the floods.

“The industry is experiencing an Australia-wide shortage of skilled trades and building materials which is resulting in delays and cost increases in the building process,’’ he said.

“Now, on top of all that we’ve had the floods, causing even more pressure for the industry. We understand people need time to recover and for everything to stabilise before pushing ahead further with these much-needed reforms.”