❓ Mr. Folkard asks the Minister for Commerce and Industrial Relations for an update on the McGowan government's commitment to protecting subcontractors in the building and construction industry. The Minister outlines the government's actions, including establishing an advisory group and considering legislative amendments.
AnsweredQoN 487Legislative Assembly
QuestionView source ↗
BUILDING INDUSTRY —
SUBCONTRACTOR PROTECTION
487. Mr M.J. FOLKARD to the Minister for Commerce and
Industrial Relations:
Can the minister update the house on
the McGowan government's commitment to protecting subcontractors in the
building and construction industry?
SUBCONTRACTOR PROTECTION
487. Mr M.J. FOLKARD to the Minister for Commerce and
Industrial Relations:
Can the minister update the house on
the McGowan government's commitment to protecting subcontractors in the
building and construction industry?
AnswerView source ↗
I thank the member for his interest
in the topic and I am happy to answer the question.
Members will remember that I established
an industry advisory group under the chairmanship of prominent Western Australian
barrister John Fiocco to look at matters regarding security of payment for
subcontractors. This is to implement the government's election
commitments. It is looking at a range of reforms to improve protections for
subcontractors. I make the point, Mr Speaker, that they in no way set aside any
of the protections that were introduced by the former government through the
former Minister for Small Business. All those protections still exist, but this
is about going even further and doing even more. We are looking at how we can
amend the Building Services (Registration) Act 2011 to ensure a more robust and
responsible registration framework. We are looking at the need for amending
legislation to provide fairer contracting practices in the industry and
improving the operation of the rapid adjudication process for the resolution of
payment disputes. I might add that we are seeking to have people access that
rapid adjudication process more often, because it is an alternative pathway to
get disputes in the industry resolved. We are also looking at introducing
statutory trust arrangements, and we are looking at how that can be done.
The member who asked the question
would be interested to know that the commonwealth government commissioned John Murray,
a former national president of the Housing Industry Association, to review subcontractor
arrangements. The commonwealth government's review is interesting
reading, and I have asked Mr Fiocco to include that body of work in his
industry advisory group. I make the point that I was very surprised that given
it was a commonwealth government review, it did not make a single
recommendation to reform commonwealth legislation. One of the key problems in
the industry is insolvency laws whereby moneys that are paid to a builder are
protected from claims by subcontractors through insolvency laws. The
commonwealth government reviewed the situation for subcontractors but did
nothing about any of the laws or procedures that are controlled by the
commonwealth government. It made recommendations only for action by the states.
We do not demur from needing to respond to that report. As I said, we have
asked Mr Fiocco's advisory group to give us recommendations for reform,
but is it not interesting that not a single recommendation from the Murray
review was directed to the reform of commonwealth legislation. I am very, very
surprised about that because one of the problems in responding to insolvency
issues and subcontractor issues in the building sector is those commonwealth
insolvency laws. I was very disappointed that there was no action on that, but
we do not step aside from the need to respond to the Murray review, and we are
doing so.
The SPEAKER : That is the end
of question time.
in the topic and I am happy to answer the question.
Members will remember that I established
an industry advisory group under the chairmanship of prominent Western Australian
barrister John Fiocco to look at matters regarding security of payment for
subcontractors. This is to implement the government's election
commitments. It is looking at a range of reforms to improve protections for
subcontractors. I make the point, Mr Speaker, that they in no way set aside any
of the protections that were introduced by the former government through the
former Minister for Small Business. All those protections still exist, but this
is about going even further and doing even more. We are looking at how we can
amend the Building Services (Registration) Act 2011 to ensure a more robust and
responsible registration framework. We are looking at the need for amending
legislation to provide fairer contracting practices in the industry and
improving the operation of the rapid adjudication process for the resolution of
payment disputes. I might add that we are seeking to have people access that
rapid adjudication process more often, because it is an alternative pathway to
get disputes in the industry resolved. We are also looking at introducing
statutory trust arrangements, and we are looking at how that can be done.
The member who asked the question
would be interested to know that the commonwealth government commissioned John Murray,
a former national president of the Housing Industry Association, to review subcontractor
arrangements. The commonwealth government's review is interesting
reading, and I have asked Mr Fiocco to include that body of work in his
industry advisory group. I make the point that I was very surprised that given
it was a commonwealth government review, it did not make a single
recommendation to reform commonwealth legislation. One of the key problems in
the industry is insolvency laws whereby moneys that are paid to a builder are
protected from claims by subcontractors through insolvency laws. The
commonwealth government reviewed the situation for subcontractors but did
nothing about any of the laws or procedures that are controlled by the
commonwealth government. It made recommendations only for action by the states.
We do not demur from needing to respond to that report. As I said, we have
asked Mr Fiocco's advisory group to give us recommendations for reform,
but is it not interesting that not a single recommendation from the Murray
review was directed to the reform of commonwealth legislation. I am very, very
surprised about that because one of the problems in responding to insolvency
issues and subcontractor issues in the building sector is those commonwealth
insolvency laws. I was very disappointed that there was no action on that, but
we do not step aside from the need to respond to the Murray review, and we are
doing so.
The SPEAKER : That is the end
of question time.
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