Housing Minister reveals cost of election-eve promise for public examination into Q1 Homes failure

THE State Government has revealed how much its election-eve pledge of a public inquiry into two devastating construction company collapses will cost.

THE State Government has revealed how much it will contribute to the public court examination of two devastating construction company collapses.

Creditors were told earlier this month the government had made good on its election-eve promise to fund a public examination into the failures of Cullen Group and Queensland One Homes, which have left scores of small and big businesses out of pockets by millions of dollars.

The public inquiry was announced the day before the last State Election last November.

Liquidator Michale Caspaney will conduct the inquiry, expected to be properly under way in the Supreme Court early next year at a cost of about $300,000.

In a previous submission to the Supreme Court, Mr Caspaney named “a commercially unrealistic business model” and “a systematic drawing down of the company’s liquid assets in favour of related parties” had caused the insolvency.

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Paul Travis Callender and Amber Patrice Callender. Photo: Facebook

The court was told important company records had been water damaged when computers were left in the back of a ute and that phone records were lost by the previous liquidator.

Mr Caspaney’s report states he found emails and other evidence that actions were taken to change contracts and display home signage from Queensland One Homes to Mr Callender’s wife’s company, Empire Constructions, a few weeks before the company collapsed.

The Queensland Building and Construction Commission referred allegations of illegal phoenix activities to corporate regulator ASIC.

Creditors of Q1 Homes heard assets belonging to director Paul Callender and his wife Amber were being sold off piece by piece, but it could be another two years before subcontractors and suppliers receive some — if any — of more than $5 million they’re owed.

A report to creditors from liquidator Michael Caspaney said he’d received proof of debts totalling $5.3 million, including $383,523 to the Australian Taxation Office, $90,680 in state payroll tax and millions of dollars to more than 50 other parties — many of them Gold Coast small businesses and sole traders.