Only Labor will deliver subcontractor protections with LNP now for it and against it

The Palaszczuk Government has reaffirmed its commitment to deliver protection for subcontractors from builder collapses and delayed payments, after the LNP announces it isboth for and against the reforms.

Housing and Public Works Minister Mick de Brenni said Tim Nicholls claims he supports the reforms, but his Party has recommended it be blocked with Gold Coast MP, and former shadow minister, Rob Molhoek stating in his Committee report the Bill “should not be passed in its current form.”

Mr de Brenni said the reforms would provide certainty, security and fairness to businesses in the construction industry.

“Our reforms will not only prevent these devastating losses for subcontractors – small and family businesses, they will give businesses the security and confidence to employ again,” he said.

“Independent analysis by Deloitte showed that reform would lead to $6.42 billion in extra economic activity over the next twenty years and support an extra 1089 jobs per year.

“The case for reform is clear, small businesses across the country need security of payment and it’s time for action.”

“Tim Nicholls’ claims of support for our reforms is lacking in sincerity and dripping in politics.  His shadow minister Stephen Bennett has said subbies just need better education.

“Subbies know how to run their businesses. They aren’t stupid, they just know the current system doesn’t help them get what they are owed.

“The important thing is that we pass these reforms and give much needed certainty to construction industry small businesses.  The Opposition should support this legislation.”

Mr de Brenni said the issue of subcontractor payments had escalated in recent years due to decisions made by the Newman-Nicholls LNP Government. 

“In government the LNP cut the guts out of the building regulator.

“They introduced a system of voluntary financial reporting, leaving the regulator blind to potential company collapses and illegal phoenix operations. 

“They owe an apology to subcontractors around the state, particularly in places like the Gold Coast where subbies have lost millions this year.

“Under the LNP the construction sector was moving towards a dangerous system of self-regulation and it was small and medium family businesses who paid the price.

Mr de Brenni said the Palaszczuk Government has listened extensively to industry when putting together the new package of reforms.

“These landmark reforms are the result of two years of extensive consultation with industry groups from across all trades and all industry groups.

“We’ve listened to builders, trades people and their representatives from Cairns to Coolangatta, with over 1100 people attending Queensland Building Plan sessions across the state.

“Our comprehensive package of reforms is a win for family businesses in trades like plumbing, electrical, concreting and brick work.

“It will provide nation-leading protection from the stresses of major financial loss, stresses that have ruined too many lives and torn too many families apart.”

ENDS

Media Contact: Tristan Douglas 0447 164 197

Source: The State of Queensland (Department of the Premier and Cabinet)

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