Hon. Kate Doust questions the Minister for Finance regarding the financial collapse of CPD Group Pty Ltd and its impact on subcontractors involved in incomplete government projects. The Minister outlines the status of the projects and limitations regarding direct payments to subcontractors due to insolvency laws.

AnsweredQoN 630Legislative Council
Asked
28 June 2016
Portfolio
Finance

QuestionView source ↗

CPD GROUP PTY LTD — INSOLVENCY —
SUBCONTRACTORS
630. Hon KATE DOUST to the Leader of the
House representing the Minister for Finance:
I refer to the financial collapse of
CPD Group Pty Ltd and the resulting 17 incomplete government projects —
(1) What has become of each of these
projects?
(2) What
guarantees can the minister give to the subcontractors who will assist in
completing those contracts that they will indeed be paid for their work?

AnswerView source ↗

I thank the honourable member for
some notice of the question.
(1) At the time
of entering into administration, 14 of the 17 projects had reached practical
completion, meaning there is little work to be completed on site. Details of
the remaining projects are yet to be finalised, as the Department of Finance is
in the process of engaging builders to complete two of the three projects. The
Department of Finance strongly encourages the use of existing subcontractors to
complete outstanding works on a project when an insolvency event occurs.
(2) As previously
advised, while the Department of Finance has implemented a range of measures to
improve the security of payment for subcontractors working on its construction
projects, commonwealth insolvency laws prevent direct payments from being made
by the department in the event of a builder entering into administration.

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