Under-fire building watchdog stripped of entire board

The board of the state’s failing building regulator has been removed as the Allan government seeks major changes to the construction watchdog.

The Victorian Building Authority has been under scrutiny since the 2022 suicide of building inspector Rob Karkut, which led to two independent inquiries into the toxic workplace. The collapse of major home builders also intensified questions about its effectiveness.

Planning Minister Sonya Kilkenny has removed the board of the VBA.Credit: Scott McNaughton, Natalie Boog

Chief executive Anna Cronin will become the sole commissioner on Sunday, The Age can reveal, when Planning Minister Sonya Kilkenny dissolves the existing board and its six members.

The Age revealed in September that five board positions, including that of the then chief commissioner, would not be renewed when the terms finished that month. The remaining six members – Justin Madden, Murray Coleman, Kelly Humphreys, Gillian Sparkes, Thu-Trang Tran and Simon Weir – will now be removed, six months before their terms were due to expire.

On Wednesday, the government confirmed the further overhaul after being contacted by The Age.

Under the changes, Cronin will be supported by new advisory committees made up of building, plumbing and consumer experts to improve the regulator’s performance.

The government expects this to bring on a program of rapid change to restore trust in the Victorian Building Authority and increase protection for customers building or renovating their own home.

A review of the Domestic Building Contracts Act and the work of the Building System Review Expert Panel will also take place.

The Australian Institute of Building Surveyors, which previously said it had lost confidence in the Victorian Building Authority, welcomed the changes as a big step in the right direction.

“In particular, the move towards greater input from and consultation with industry will better inform the VBA as it undertakes its vital regulatory functions, protecting consumers of building services in Victoria,” Victorian director Wayne Liddy said.

“[The institute] will continue to support the state government as it puts in place long-overdue industry reforms.”

Kilkenny said the changes would strengthen oversight of new home construction.

“The role of the building regulator is critical as we deliver more homes for Victorians that are where people want to live – close to transport, jobs and services – under the landmark Housing Statement,” she said.

Cronin, the former commissioner for better regulation, became chief executive last year and was tasked with overhauling the Victorian Building Authority’s culture after the resignation of former chief executive Sue Eddy.

Rob Karkut’s partner, Andrea Holden, at the VBA last May for a vigil marking the anniversary of Karkut’s death. Credit: Marta Pascual Juanola

Previously, the authority needed five board members. But that was slashed to just one position under state legislation at Kilkenny’s recommendation this month now that the authority is deemed a “reorganising body”.

In October, The Age revealed the authority had been warned it might have broken the law by using unqualified staff. That warning was written as part of an investigation into Karkut’s death, which exposed the authority as an unsafe workplace because of pressure to meet ambitious targets set by the Andrews government.

WorkSafe went on to charge the authority with two breaches of the Occupational Health and Safety Act last year.

In May, this masthead and 60 Minutes also revealed inspectors were completing virtual audits rather than physically attending construction sites, despite legal advice that by doing so the authority might breach its requirements under the state’s Building Act.

The authority’s enforcement activities have also come under scrutiny, with several builders going into liquidation without domestic building insurance for their customers as is required by law.

The Age revealed it was not uncommon for builders to delay or avoid obtaining domestic building insurance, exposing customers to loss of deposits if a company went into liquidation. It opened the authority to questions about why it had not more strongly enforced the requirement.

Following the collapse of Porter Davis, the authority was asked to audit builders over the issue.

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