Housing Minister defends tough laws to protect subbies
The State Housing Minister has defended his government’s stance on protecting subbies “ripped off under a broken system” as the Opposition calls his department out for not doing enough fast enough, saying the industry is in crisis.
HOUSING Minister Mick de Brenni has defended his government’s tough stance on protecting subbies “ripped off under a broken system”, after today’s revelations tipping further collapses in the construction industry.
The Springwood MP was responding after News Queensland this morning released details of 65 builder collapses across the country, but the Opposition says Labor has not done enough to protect subcontractors and suggested the industry is in crisis.
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Mr de Brenni said penalties, including jail time, were now in place for mishandling stubbies’ money under this system and he sympathised with those who had been ripped off.
The state introduced tough measures on January 1 to crack down on unscrupulous practices in the building industry, legislating mandatory minimum financial disclosure requirements.
The new rules ensure the Queensland Building and Construction Commission has greater insight into a company’s financial health.
In December, subbies were also guaranteed enhanced security of payment.
“Everyone in the building industry deserves the confidence they will be paid on time, in full, every time … my resolve to deliver effective security of payment reforms has never been stronger,” he said.
“I agree with subbies and the builders who do the right thing. The rules were broken and they needed to change.
“There’s now a fairer progress payments process, streamlined adjudication procedures for disputes and greater protection of retention moneys.
“Importantly, this reporting system is backed by tough penalties for anyone who breaks the rules,” he said.
The state has also promised to evaluate the Project Bank Accounts that now apply to all government projects between $1m and $10m, before rolling out to all private sector projects over $1m.
An evaluation report on Project Bank Accounts will be completed next month.
Mr de Brenni has pushed for the tougher measures since 2016 and said a block of units in Springwood was part of the trigger for the statewide building industry inquiry into the failed Cullen Group.
In October, Mr de Brenni vowed to get to the bottom of the 2016 Cullen Group collapse, which left up to 30 subcontractors who built the units out of pocket.
The Springwood property, on the corner of Cinderella Dve and Athena Grove, is in the heart of Mr de Brenni’s electorate.
● Construction company collapse inquiry
At the time, Mr de Brenni, who called for the inquiry before the 2017 election, said he was heartened by the $300,000 the industry watchdog would contribute for the investigation which would also delve into the failure of Queensland One Homes.
As part of a public examination, directors of the two failed companies were to appear before the Federal Court to give evidence.
The QBCC will play an observatory role for the Cullen Group Australian investigation and act as a committee member for the inquiry into Queensland One Homes.
Speaking outside the now-tenanted units in Springwood, Mr de Brenni said most of the subcontractors on the units still had not been paid, two years after the Cullen collapse which left debts of about $18 million.
WHY MORE BUILDERS WILL GO BROKE
He said Cullen Group was like many other building companies around the state which had used subcontractor funds to build their projects.
But he slated the lack of financial accountability back to a previous LNP state government when the then-Housing Minister Tim Mander “watered down” financial requirements including forcing builders to report their financial status to the Queensland Building and Construction Commission.
The Shadow Minister for Housing and Public Works, Michael Hart, said promised reforms had taken to long to be pushed through and that subcontractors deserved to be paid for the work they do.
“These are small businesses, often sole operators, who are the heart and soul of the Queensland construction industry,” he said.
“When Labor were elected in 2015, they promised the world but have failed to deliver.
“We’ve seen a lot of the political blame game from Mick De Brenni, but promised reforms have taken too long.
“Building approvals have fallen for 11 consecutive months, which is a reflection of the industry downturn.
“The industry is in crisis and needs a circuit breaker to restore confidence.
“The Queensland Building and Construction Commission was introduced by the LNP as a tough new cop for the building industry - it was given the enforcement powers to take action of these issues but has been weakened by Labor and stacked with Labor mates and union hacks.
“In my opinion has the QBCC has failed in its duties and so has ASIC.
I also remind people that the minimum financial requirements for builders wasn’t altered by the LNP.
“The reporting requirements were changed, but builders were still required to meet those standards - so this is an enforcement issue pure and simple.
“We back calls for a dedicated police taskforce to investigate cases of fraud and start prosecuting people for breaking the law.
“Queenslanders deserve to have confidence that they can build their dream home and get what they pay for.”
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