Media Release
20 August 2012
Member for Myall Lakes, Stephen Bromhead said he totally supports the NSW Government?s Inquiry into insolvency in the construction industry and is encouraging people who are or have been involved in the industry to make a submission.
The Inquiry was announced by Minister for Finance and Services, Greg Pearce who said the Inquiry will be chaired by barrister Bruce Collins QC, who will examine submissions and report back to the Government.
Hundreds of construction companies failed between 2009 and 2011 with debts in the billions of dollars, affecting up to 24,000 sub-contractors.
?The failure of a business in the construction industry creates a ripple effect that can destroy the financial stability of its sub?contractors and suppliers,? he said.
?The effects on confidence in the construction industry are also of enormous concern, especially at a time when the NSW Government is embarking on a significant infrastructure investment program.
?I have asked Mr Collins to look at why and how insolvency is affecting unsecured creditors and to recommend ways the Government might act to help those affected.
Member for Myall Lakes, Stephen Bromhead said that for too long there have been far too many sub contractors affected by companies not meeting their financial obligations.
?Companies have rattled up debt, gone bankrupt then started building again the following week under a different name,? he said
?The former state Labor government watched this happen and just sat on their collective hands wondering what to do.
?This is the start of the process to protect sub contractors and suppliers from unscrupulous operators in the construction industry and comes at a time when the industry needs to restore confidence.?
The Inquiry is seeking submissions from construction companies, sub-contractors and experts in the industry.
The Inquiry?s terms of reference include looking at how initiatives such as insurance schemes, trust arrangements or mutual funds could help secure subcontractor entitlements.
Submissions can be lodged on the NSW Government?s ?Have Your Say? website, which is www.nsw.gov.au/haveyoursay or by emailing info@iicii.nsw.gov.au.
Written submissions should be sent to the Chairman of the Inquiry into Construction Industry Insolvency, GPO Box 15, Sydney NSW 2001.
For media enquiries please contact Stephen Bromhead
Source: http://www.stephenbromhead.com.au/?p=884
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