❓ Ms. Saffioti questions the Minister for Finance on delays in implementing project bank accounts to protect subcontractors from non-payment on government projects. The Minister acknowledges delays and industry concerns, highlighting alternative measures in place.
AnsweredQoN 433Legislative Assembly
QuestionView source ↗
BUILDING MANAGEMENT AND WORKS — PROJECT
BANK ACCOUNTS
433. Ms R. SAFFIOTI to the Minister for
Finance:
When did I get my second?
The
SPEAKER : You did, so just do not worry about it.
Ms
R. SAFFIOTI : I refer to the ongoing failure of this government to deal with
the issue of non-payment of subcontractors on government —
Dr
G.G. Jacobs : We've already done this. This has been done.
Several members interjected.
The
SPEAKER : Member for Eyre, I call you to order for the first time.
Ms
R. SAFFIOTI : What happened to ''Mr Positivity''? ''Mr Positivity''
has gone!
My
question relates to subcontractors losing their homes and going bankrupt,
member for Eyre. I refer to the ongoing failure of this government to deal with
the issue of non-payment of subcontractors on government projects.
(1) Can the
minister confirm that he told the other place in an answer in April that the
review of the trial of project bank accounts would be completed and tabled in
May?
(2) Given that it
is nearly the end of June, why has action not been undertaken to implement this
measure, and why are subcontractors still facing hardship and anguish by not
getting paid on government projects?
BANK ACCOUNTS
433. Ms R. SAFFIOTI to the Minister for
Finance:
When did I get my second?
The
SPEAKER : You did, so just do not worry about it.
Ms
R. SAFFIOTI : I refer to the ongoing failure of this government to deal with
the issue of non-payment of subcontractors on government —
Dr
G.G. Jacobs : We've already done this. This has been done.
Several members interjected.
The
SPEAKER : Member for Eyre, I call you to order for the first time.
Ms
R. SAFFIOTI : What happened to ''Mr Positivity''? ''Mr Positivity''
has gone!
My
question relates to subcontractors losing their homes and going bankrupt,
member for Eyre. I refer to the ongoing failure of this government to deal with
the issue of non-payment of subcontractors on government projects.
(1) Can the
minister confirm that he told the other place in an answer in April that the
review of the trial of project bank accounts would be completed and tabled in
May?
(2) Given that it
is nearly the end of June, why has action not been undertaken to implement this
measure, and why are subcontractors still facing hardship and anguish by not
getting paid on government projects?
AnswerView source ↗
I thank the member for West Swan for
the question.
(1)–(2) We
are still looking at the project bank accounts situation. There is some
negativity from industry, but we are pursuing other alternatives around that.
Mr
B.S. Wyatt : Who has expressed negativity?
Mr
W.R. MARMION : That is not the question.
The
SPEAKER : Member for Victoria Park, I call you to order for the second time.
Mr
W.R. MARMION : If the member for Victoria Park has a question, he might like
to ask me a question.
The
SPEAKER : No; just answer through the Chair.
Mr
W.R. MARMION : This is the third time I have had this question, but I can
give the member more detail if she likes. We already have in place proper
assessment of a contractor before they get a contract, which I mentioned
yesterday. What I did not mention yesterday was the continuous assessment of
verification of some of the subcontractors getting paid. We do spot checks, so
that is another thing that is happening now. We also have statutory
declarations. There were 14 recommendations produced that related to the
Department of Finance and Building Management and Works through a report done
by the Small Business Commissioner, and all 14 recommendations of that report
have been implemented by my Department of Finance. However, regardless of the
implementation of all those recommendations, we cannot guarantee that a private
contractor will not go bankrupt. That is something that is out of the control
of government. Unfortunately, when that happens, it does impact on
subcontractors. I have been advised—this is not an exact figure but an
estimate—that about 22 per cent of the work of this contractor was
government related. The other 78 per cent relates to the private sector. We are
still looking at project bank accounts as a possible solution, but even then
there are some shortcomings in that.
the question.
(1)–(2) We
are still looking at the project bank accounts situation. There is some
negativity from industry, but we are pursuing other alternatives around that.
Mr
B.S. Wyatt : Who has expressed negativity?
Mr
W.R. MARMION : That is not the question.
The
SPEAKER : Member for Victoria Park, I call you to order for the second time.
Mr
W.R. MARMION : If the member for Victoria Park has a question, he might like
to ask me a question.
The
SPEAKER : No; just answer through the Chair.
Mr
W.R. MARMION : This is the third time I have had this question, but I can
give the member more detail if she likes. We already have in place proper
assessment of a contractor before they get a contract, which I mentioned
yesterday. What I did not mention yesterday was the continuous assessment of
verification of some of the subcontractors getting paid. We do spot checks, so
that is another thing that is happening now. We also have statutory
declarations. There were 14 recommendations produced that related to the
Department of Finance and Building Management and Works through a report done
by the Small Business Commissioner, and all 14 recommendations of that report
have been implemented by my Department of Finance. However, regardless of the
implementation of all those recommendations, we cannot guarantee that a private
contractor will not go bankrupt. That is something that is out of the control
of government. Unfortunately, when that happens, it does impact on
subcontractors. I have been advised—this is not an exact figure but an
estimate—that about 22 per cent of the work of this contractor was
government related. The other 78 per cent relates to the private sector. We are
still looking at project bank accounts as a possible solution, but even then
there are some shortcomings in that.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.