❓ Hon Kate Doust questions the Minister for Finance regarding the legality of the $5 million ex gratia fund established after the Building the Education Revolution debacle, given Commonwealth insolvency laws. The Minister clarifies the fund's purpose and applicability.
AnsweredQoN 606Legislative Council
QuestionView source ↗
CPD GROUP PTY LTD — INSOLVENCY
606. Hon KATE DOUST to the Leader of the House
representing the Minister for Finance:
I refer to the answer given to part
(3) of question without notice 545 regarding the recent financial collapse of
CPD Group Pty Ltd.
(1) Given that
commonwealth insolvency laws prevent the state government from making direct
payments to subcontractors in the event of builder insolvency, can the minister
please explain how the state government was able to set up a $5 million ex
gratia fund to directly pay subcontractors after the Building the Education
Revolution debacle in 2013?
(2) Has the
minister or his department been contacted by any federal agencies about the
breach of commonwealth insolvency laws; and, if not, why not?
606. Hon KATE DOUST to the Leader of the House
representing the Minister for Finance:
I refer to the answer given to part
(3) of question without notice 545 regarding the recent financial collapse of
CPD Group Pty Ltd.
(1) Given that
commonwealth insolvency laws prevent the state government from making direct
payments to subcontractors in the event of builder insolvency, can the minister
please explain how the state government was able to set up a $5 million ex
gratia fund to directly pay subcontractors after the Building the Education
Revolution debacle in 2013?
(2) Has the
minister or his department been contacted by any federal agencies about the
breach of commonwealth insolvency laws; and, if not, why not?
AnswerView source ↗
I thank the honourable member for some
notice of the question.
(1) The ex gratia
fund was established to provide partial relief to a number of subcontractors
that experienced financial difficulties following the global financial crisis.
The payments were not made for the head contractor's obligations under
the contracts in question and therefore are not considered to be preferential
payments.
(2) Not applicable.
notice of the question.
(1) The ex gratia
fund was established to provide partial relief to a number of subcontractors
that experienced financial difficulties following the global financial crisis.
The payments were not made for the head contractor's obligations under
the contracts in question and therefore are not considered to be preferential
payments.
(2) Not applicable.
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