Mr. Katsambanis questions the Minister for Commerce about the Department's response to potential breaches of the Residential Tenancies Act by Sterling First and the actions taken to alert the public to investment risks. The Minister details the Department's actions, including alerting ASIC, and expresses disappointment with ASIC's response time.

AnsweredQoN 427Legislative Assembly
Asked
12 June 2019
Portfolio
Commerce

QuestionView source ↗

STERLING FIRST —
RESIDENTIAL TENANCIES ACT — BREACHES
427. Mr P.A. KATSAMBANIS to the Minister for Commerce:
I refer to the appalling collapse
of Sterling First and the minister's admission in the house yesterday
that the Department of Commerce was aware of potential breaches of the state
Residential Tenancies Act as far back as 2017. Given that the department was
aware of potential breaches, what action did it take to investigate those
breaches and, importantly, what actions did the department and the government
take to alert the public about the potential risks of investing in Sterling
First?

AnswerView source ↗

The
Department of Commerce went to Sterling First and pointed out some of the
breaches. As I understand it, some
amendments were made to the tenancy agreements being offered to prospective
residents by the company. They were to do with notice periods that are required
under the act and tenants' rights; they were minor technical deficiencies
in the agreements, which the company said would be and were rectified. It has
to be understood that these corporations were constructed under the
commonwealth corporations legislation. The department took further action by
ringing the Australian Securities and Investments Commission to alert it to
what was happening, and asked it to
investigate and protect those people, as the department should have done.
Personally , I am a bit disappointed with the length of time ASIC took,
but, nonetheless, it appointed an administrator. It is a shocking situation.

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