No final decision made on developer regulation de Brenni asserts, as CFMEU fires up

Major new regulation on property developers isn’t a done deal the state government has asserted, amid peak body warnings it could increase costs and push out timelines on housing projects.

Major new regulation on property developers isn’t a done deal the state government has asserted, amid peak body warnings it could increase costs and push out timelines on housing projects.

But Public Works Minister Mick de Brenni’s assurance the recommended changes would need to be “tested” against consultation and a cost-benefit analysis has prompted the CFMEU to accuse the state government of “flip flopping”.

The state government’s developer review panel, in its final report, called for property developers to be “accredited” in a bid to bring in “minimum standards”, increasing transparency and provide greater financial certainty particularly to builders.

The Property Council, the peak body representing developers, warned Queenslanders could expect additional costs and time delays due to the “implausible” new regulatory framework that would add “further costs and administrative burden to developers”.

Mr de Brenni, in a statement on Friday, asserted the government had “not committed to implementing the recommendations of the independent developer review panel” and that feedback would be sought.

Mick de Brenni MP at the ALP Queensland State Conference Mackay Entertainment and Convention Centre (MECC) Saturday 3 June 2023 Picture: Michaela Harlow

CFMEU Queensland boss Michael Ravbar lashed the “flip flop” from the Minister and said if the state government wanted to address the housing crisis it would need to look “at the people on the top of the food chain”.

“(It’s) developers who are the ones that have been causing a lot of economic harm and instability,” he said.

Under the plan an “accredited” developer would need to be deemed a “fit and proper” person and to maintain their status would have to undertake between two and ten hours of personal development training each year.

While Queensland is the only state progressing work on developer licensing, the ACT is currently drafting laws to be introduced later this year.

Sunshine Coast-based Cube Developments director Scott Juniper, who is also a licensed builder, said he understood the need for security of payment for builders but didn’t think state government regulation would help as due diligence processes already occurred along the way.

Honeycombes Property Group managing director Peter Honeycombe said regulation on developers which ensured financial credibility for builders was “a great thing” in principle.

Mr Honeycombe argued financial security across construction meant the margins built in just in case of payment defaults can be slimmed to everyone’s benefit, as long as the regulation system “doesn’t constipate the outcome”.

He urged the government to look at the “bigger picture” and reduce red tape elsewhere to create “efficient and cost effective housing” which would help prevent developers and builders from going bust.

Opposition State Development spokesman Jarrod Bleijie said it was “vital” the government did not find ways to keep “putting a handbrake on housing”.

Greens MP Michael Berkman said the government needed to put the recommended system in place, accusing the minister of “cowardice” for not committing to implementation.

Originally published as No final decision made on developer regulation de Brenni asserts, as CFMEU fires up