Mr. Katsambanis questions the Minister for Commerce regarding the department's alleged failure to warn the public about the risks associated with Sterling First, leading to financial losses for individuals. The Minister defends the department's actions, stating they were proactive in investigating and reporting the matter to ASIC.

AnsweredQoN 428Legislative Assembly
Asked
12 June 2019
Portfolio
Commerce

QuestionView source ↗

STERLING FIRST —
RESIDENTIAL TENANCIES ACT — BREACHES
428. Mr P.A. KATSAMBANIS to the Minister for Commerce:
I have a supplementary question. We
are aware that the Australian Securities and Investments Commission has a role,
but so does the minister's department. Will the Minister for Commerce
admit that the department and his government failed to alert the public of Western
Australia to the risks, and as a result many people have lost their homes and
lifetime savings?

AnswerView source ↗

I do not know why the member has
said they have lost their homes because of the inaction of the department. The
department was very proactive. The department saw this product being offered in
advertisements. It did not wait until something went wrong; it went to the
seminars to investigate the product. When the department saw that the offer
amounted to a life tenancy—that is, a five-year tenancy, with seven
five-year rollovers, which would have given the person 40-years'
occupancy, for an initial outlay of only 60 per cent of the purchase price of
the unit, and that 60 per cent was to be invested to create enough rent to
sustain the system over 40 years—it realised that this company was
probably duping people. It had to get onto ASIC immediately, which had the
constitutional power, and it did so.
Mr P.A. Katsambanis : Why didn't
you let the public know? You can do it.
Mr J.R. QUIGLEY : Yes, it did.
Mr P.A. Katsambanis interjected.
The SPEAKER : Member for Hillarys!

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