❓ Mr. Catania questions the Minister for Commerce on whether the Building and Construction Industry (Security of Payment) Bill 2021 will guarantee payment to subcontractors in cases of company insolvency. The Minister outlines the bill's protections and criticises the previous government's inaction.
AnsweredQoN 116Legislative Assembly
QuestionView source ↗
BUILDING INDUSTRY —
SUBCONTRACTOR PROTECTION
116. Mr V.A. CATANIA to the Minister for Commerce:
I refer to the Labor government's
plan to introduce the Building and Construction Industry (Security of Payment) Bill 2021. Will this piece of legislation afford
absolute protection to all subcontractors by guaranteeing payment in the event
of contracted companies such as Pindan becoming insolvent or otherwise being
unable to pay their subcontractors?
SUBCONTRACTOR PROTECTION
116. Mr V.A. CATANIA to the Minister for Commerce:
I refer to the Labor government's
plan to introduce the Building and Construction Industry (Security of Payment) Bill 2021. Will this piece of legislation afford
absolute protection to all subcontractors by guaranteeing payment in the event
of contracted companies such as Pindan becoming insolvent or otherwise being
unable to pay their subcontractors?
AnswerView source ↗
I
am very pleased to outline what the bill that we will introduce shortly will do
for subcontractors. This bill has been a
long time coming in Western Australia. We know that issues in the construction
industry are not new and have been playing
out for a number of years. Under the member's government, nothing was
done over eight and a half years — absolutely nothing! Even when the Small Business Commissioner, under the
former government, called for a review, it refused that.
The bill, like the bill that we
introduced in the last Parliament, will provide protections for subcontractors.
It will provide a number —
Mr V.A. Catania interjected.
Ms A. SANDERSON : Member, do
you want to hear the answer?
For the first time, it will provide
protections in law for minimum monthly payments of subcontractors, which do not
exist. It will provide for a retention trust for a portion of that contract.
Mr V.A. Catania : A portion!
Ms A. SANDERSON : It is for a portion
of that contract.
Mr V.A. Catania interjected.
The SPEAKER : Order! Member
for North West Central, you have asked the question; I think you could pay the
courtesy of listening to the answer.
Ms A. SANDERSON : It will also
provide for rapid and effective adjudication processes that do not exist now. We
have seen subcontractors ending up in lengthy, expensive and difficult
disputes. This bill will ensure that subcontractors will be protected down the
entire chain of the contract. Those retention moneys, coupled with the monthly
payments that will be enshrined in law, will protect those subcontractors in
the event of insolvency.
Mr V.A. Catania : Like the
Pindan subcontractors?
Ms A. SANDERSON : We saw it
with the collapse of Diploma and Builton, and with the Perth Children's
Hospital. There were reported suicides under your watch—your government
did nothing! When the then Leader of the Opposition,
the member for Rockingham, the now Premier, moved a motion condemning the
Barnett government's inaction on subcontractors, you voted
against that motion. I will not be lectured by the opposition on the quality of
this bill when we are the only party that is delivering protections for
subcontractors.
Have we asked the Leader of the
Liberal Party what his position is on cascading trusts? What is the opposition's
position on cascading trusts? What is its position on retention trusts?
Several members interjected.
The SPEAKER : Order, please!
Ms A. SANDERSON : The bill
will provide protections for contractors that have never existed before. It
will be a significant and broad reform that will deliver for contractors.
am very pleased to outline what the bill that we will introduce shortly will do
for subcontractors. This bill has been a
long time coming in Western Australia. We know that issues in the construction
industry are not new and have been playing
out for a number of years. Under the member's government, nothing was
done over eight and a half years — absolutely nothing! Even when the Small Business Commissioner, under the
former government, called for a review, it refused that.
The bill, like the bill that we
introduced in the last Parliament, will provide protections for subcontractors.
It will provide a number —
Mr V.A. Catania interjected.
Ms A. SANDERSON : Member, do
you want to hear the answer?
For the first time, it will provide
protections in law for minimum monthly payments of subcontractors, which do not
exist. It will provide for a retention trust for a portion of that contract.
Mr V.A. Catania : A portion!
Ms A. SANDERSON : It is for a portion
of that contract.
Mr V.A. Catania interjected.
The SPEAKER : Order! Member
for North West Central, you have asked the question; I think you could pay the
courtesy of listening to the answer.
Ms A. SANDERSON : It will also
provide for rapid and effective adjudication processes that do not exist now. We
have seen subcontractors ending up in lengthy, expensive and difficult
disputes. This bill will ensure that subcontractors will be protected down the
entire chain of the contract. Those retention moneys, coupled with the monthly
payments that will be enshrined in law, will protect those subcontractors in
the event of insolvency.
Mr V.A. Catania : Like the
Pindan subcontractors?
Ms A. SANDERSON : We saw it
with the collapse of Diploma and Builton, and with the Perth Children's
Hospital. There were reported suicides under your watch—your government
did nothing! When the then Leader of the Opposition,
the member for Rockingham, the now Premier, moved a motion condemning the
Barnett government's inaction on subcontractors, you voted
against that motion. I will not be lectured by the opposition on the quality of
this bill when we are the only party that is delivering protections for
subcontractors.
Have we asked the Leader of the
Liberal Party what his position is on cascading trusts? What is the opposition's
position on cascading trusts? What is its position on retention trusts?
Several members interjected.
The SPEAKER : Order, please!
Ms A. SANDERSON : The bill
will provide protections for contractors that have never existed before. It
will be a significant and broad reform that will deliver for contractors.
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