❓ Mr. Catania questions the Minister for Commerce on the exclusion of cascading trusts from the building industry subcontractor protection bill, despite their recommendation in a government report. The Minister defends the decision citing sector volatility and lack of national precedent.
AnsweredQoN 117Legislative Assembly
QuestionView source ↗
BUILDING INDUSTRY — SUBCONTRACTOR
PROTECTION
117. Mr V.A. CATANIA to the Minister for Commerce:
I have a supplementary question. Why
have cascading trusts, which were recommended in the government's own
report, and could clearly afford subcontractors the required level of
protection, not been included in the bill?
PROTECTION
117. Mr V.A. CATANIA to the Minister for Commerce:
I have a supplementary question. Why
have cascading trusts, which were recommended in the government's own
report, and could clearly afford subcontractors the required level of
protection, not been included in the bill?
AnswerView source ↗
Cascading
trusts were a recommendation of the Fiocco report, which was instigated by my
predecessor, Bill Johnston . If the
member were to read the report, which I believe the member probably has not, he
will find that there are varying views across the sector about cascading
trusts—varying views. There is a divergence of opinion in a very
important sector. We felt that that would be
a bridge too far for a sector that has just come off what has been a number of
years of flatness, essentially. It is a very volatile sector. No
jurisdiction—not one jurisdiction—has moved to implement
cascading trusts in Australia. Our bill will bring us in line with the rest of
the country, and it will provide protections for subcontractors along the
entire chain of the contracting process—that is, the point of the bill—and
with the rapid adjudication process resolve those disputes as they occur.
trusts were a recommendation of the Fiocco report, which was instigated by my
predecessor, Bill Johnston . If the
member were to read the report, which I believe the member probably has not, he
will find that there are varying views across the sector about cascading
trusts—varying views. There is a divergence of opinion in a very
important sector. We felt that that would be
a bridge too far for a sector that has just come off what has been a number of
years of flatness, essentially. It is a very volatile sector. No
jurisdiction—not one jurisdiction—has moved to implement
cascading trusts in Australia. Our bill will bring us in line with the rest of
the country, and it will provide protections for subcontractors along the
entire chain of the contracting process—that is, the point of the bill—and
with the rapid adjudication process resolve those disputes as they occur.
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