Gold Coast Commonwealth Games Minister Kate Jones on warpath, orders Grocon pay subbies
COMMONWEALTH Games Minister Kate Jones is fed-up and on the warpath for out-of-pocket Commonwealth Games subbies.
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COMMONWEALTH Games Minister Kate Jones has ordered the CEO of Athletes’ Village developer Grocon to Brisbane today where she will demand the company pay out-of-pocket subcontractors.
A fed-up Ms Jones and State Development Minister Anthony Lynham are scheduled for a showdown with Craig Mitchell this morning (THURS).
Ms Jones said a lack of clarity and payment for more than a dozen firms owed $1 million from the collapse of Grocon contractor Ware Building Pty Ltd had gone on too long.
“Gold Coasters expect subbies to get paid,” Ms Jones said. “This has been dragging on for days. I was given assurances, it hasn’t come to fruition. Enough is enough.
“I apologise that subbies haven’t got clarity yet but I’m meeting directly with the CEO.”
Ms Jones said she demanded the face-to-face meeting because it was “not good enough we are hearing conflicting information from Grocon and subcontractors”.
She had been given assurances from Grocon it was working with all subbies to ensure payment. But a Grocon email sent on Tuesday to Decor Blinds — owed $63,000 — rejects their invoice.
“I’m frustrated and angry like everybody else who believes a worker deserves to get paid for the work they have done,” Ms Jones said.
“The meeting is all about getting the facts directly from the CEO and I’ll be making it very clear about our expectations that every contractor gets paid their true entitlement for the work.”
Ms Jones laid blame at the feet of the former LNP government which privatised the Athletes’ Village site which Grocon owns and will take over after the Games.
“For all the other construction projects the Government is the principal so I wouldn’t have to meet with Grocon. We would pay the subbies.
“Grocon is the principal contractor and Grocon need to step up and take responsibility for the subcontractors who worked on their project that they own.
“If this had happened and Ware Building were employed on the Coomera Sports Centre, then absolutely I could have stepped in and sorted it out.”
The matter has festered since Grocon announced last week that Ware Building — overseeing construction of 82 townhouses at the Parklands site — had gone into liquidation.
Earlier this week Grocon said it had started meeting affected subbies. But Decor Blinds owner Frank Cairns has shared a response from Grocon to his invoice which reads: “As these works were contracted to Decor by another entity — i.e. not Grocon Constructors Pty Ltd — they are outside of our (Grocon/Decor) current contractual agreement.”
Grocon refused to comment further on the subbies drama on Tuesday, other than to say it did not risk the completion of the project.
The subbies — claiming to be owed between $18,000 and $200,000 each — say they will refuse to finish site work or rectify any defects while they remain unpaid.
They are all hitting Grocon with subcontractor claim charges for what they are owed, giving the company 14 days to accept liability or dispute them.
Liquidator Scott Newton of Shaw Gidley hosts the first creditors meeting on Wednesday and Mr Lynham has appointed State Development officials to attend and monitor the liquidation.
TIMELINE
August 16: Ware Building Pty Ltd goes into administration
August 17: Developer Grocon says its contractor Ware advised all debts were paid
August 19: Fuming subbies reveal they’re out of pocket
August 21: 13 tradie firms lawyer up to take on Grocon
August 23: Games Minister Jones demands Grocon CEO meeting
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