Palaszczuk Government makes history with nation leading subbies payment reforms - The Cabinet and Ministerial Directory 13/7/20, 1:20 pm

I Media release Minister for Housing and Public Works and Minister for Sport The Honourable Mick de Brenni

Thursday, October 26, 2017

Palaszczuk Government makes history with nation leading subbies payment reforms

Today marks a new era for the state’s building and construction industry, with the Palaszczuk Government’s historic subcontractors payment legislation passed through the Parliament.

Minister for Housing and Public Works Mick de Brenni said the Building Industry Fairness (Security of Payment) Bill 2017 would bring security and confidence to the Queensland’s $45 billion construction industry.

“For far too long, subcontractors have had to shoulder most of the financial risk on building projects, but that changes today,” Mr de Brenni said.

“These reforms help ensure that subcontractors in the building and construction industry are paid in full and on time, every time.

With these reforms, Queensland will have the strongest protections for subcontractors anywhere in Australia.”

Mr de Brenni paid tribute to the extraordinary contribution of the Speaker Peter Wellington.

“It’s almost unheard of for the Speaker to vacate the chair in order to speak on a bill, and entirely unprecedented for an independent Speaker give such passionate support for a policy of the Premier and her government,” Mr de Brenni said.

“We are where we are today because of the dedication the Speaker Wellignton has shown in standing up for his constituents after the 2014 Walton’s collapse, which sent so many subcontractors to the wall.

“I want to thank him for his tireless advocacy and for his support for people who make up Queensland’s building and construction industry.”

The reforms have been roundly applauded by the building and construction industry.

Master Electricians State Manager Gary Veenstra said their members were relieved to know that the Building Industry Fairness Bill had been passed.

“I never thought I’d see the day, honestly. Subbies have spent so many nights sitting up late, going over the books, wondering how they going to pay their staff,” Mr Veenstra said.

“I can’t tell you how much it means to subbies that this government has passed legislation to make sure that subbies and their workers are going to get paid.”

National Fire Industry Association CEO Wayne Smith said their members had been asking for payment security for as long as he could remember, but the Palaszczuk Government was the first wth the courage to address the issue.

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“This is a turning point for the building and construction industry,” Mr Smith said.

“When I’ve spoken to members up until now, they’ve said that even when they do chase big builders for payment, it’s complicated and difficult and in then end it’s not worth it. So knowing that we’ll be able to use a simplified, faster dispute resolution process is just going to free up people’s time, they can get their money and get back to work.

“We are so glad to have a government and a Minister who really listened, who worked with us on these reforms.”

Airconditioning and Mechanical Contractors Association Executive Director Graham Mackrill said subcontractors have never had such robust protections anywhere in Australia.

“This legislation is historic - it will create the kind of environment that will make people want to do business in Queensland,” Mr Mackrill said.

Master Plumbers Association of Queensland Executive Director Penny Cornah said the Building Industry Fairness Bill would bring balance for subcontractors.

Plumbers will no longer be used as a line of credit by unscrupulous operators,” Ms Cornah said.

“Payment certainty allows businesses to employ more apprentices and employees, knowing that they know they will be paid what they are owed.”

Mr de Brenni said the comprehensive package of reforms were the result of extensive consultation, and would deliver a range of measures to secure payment for subcontractors.

“Project Bank Accounts are part of this comprehensive package of reforms, and PBAs will prevent builders who want to use subcontractor payments as a line of credit from using funds from one project on another project,” Mr de Brenni said.

“We listened to industry, and our new laws mean that we will have the ability to expand the use of PBAs down to sub­ subcontractor level if needed.

“We will use PBAs on all Government projects valued at between $1 million and $10 million from 1 January 2018, and will look to extend them to private sector projects over $1 million after 1 January 2019.”

Mr de Brenni said Queensland’s $45 billion building and construction industry employs almost 220,000 people and this is expected to grow to $52.3 billion and 230,000 people in 2018-2019 - a rise of $7.4 billion.

“Queensland deserves a strong, viable and productive building and construction industry,” he said.

“These measures are part of a comprehensive suite of reforms developed following extensive consultation over the past two years.

'They are considered, they are comprehensive and they will protect the lives and livelihoods of Queenslanders.”

[ENDS]

Media contact: Tristan Douglas - 0447 164 197

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Media release Minister for Housing and Public Works, Minister for Digital Technology and Minister for Sport Qutenstoorf Government The Honourable Mick de Brenni

Thursday, March 01, 2018

Palaszczuk Government securing payment for subbies

The Palaszczuk Government’s landmark building industry fairness reforms mark an important milestone today with the commencement of Project Bank Accounts (PBAs) as part of the Building Industry Fairness Act.

Minister for Housing and Public Works Mick de Brenni said PBAs are the centrepiece of a suite of measures that create the strongest sub-contractor protections in the nation.

“This Labor Government is committed to a fair go for construction businesses, for workers, and for families,” Mr de Brenni said.

“Queensland’s $45 billion construction sector employs over 220,000 people and it is vitally important that subcontractors and suppliers feel confident they will be paid in full, on time and every time.

“Today we take a giant step in reversing the damage caused by the LNP’s absurd self-reporting financial scheme for building companies.

“It was the LNP that opened the door for dodgy operators to send Queensland subbies to the wall by making it easy for them to delay payments, or, in too many cases, not pay them at all by setting up sham companies in someone else’s name.

“Subbies are not an interest-free loan facility, they are not a source of free money for unscrupulous operators.

“They are mums and dads, families, small business people out there having a go and they deserve to be paid for the work they have completed.”

The first phase of the new PBA model applies to government projects valued at between $1 million and $10 million, excluding engineering projects like bridges and roads. Progress payments are paid through a trust for head contractors and first-tier sub-contractors and suppliers, with separate trust accounts for retention funds and disputed funds.

The second phase of the reforms takes effect from 1 July 2018 and includes new procedures for payment claims, responses and adjudication of disputed claims. The third phase from 1 January 2019 will reinstate mandatory financial reporting for building companies in Queensland.

Mr de Brenni said the reforms also strengthen the Queensland Building and Construction Commission’s powers to intervene to protect subbies by re-opening its line of sight to companies that may be in trouble.

“The LNP tied the hands of the QBCC behind its back, whilst the Palaszczuk Government has given the tiger back its teeth,” he said.

“The Palaszczuk Government’s is committed to fairness - and that’s what these reforms are all about.

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After evaluation, PBAs will eventually be rolled out to all government and private sector projects over $1 million and, if needed, will be extended further to cover lower tiers of subcontractors.

Mr de Brenni said the wide-ranging benefits of the security of payment reforms include reduced project delays, fewer disruptions and disputes as well as more money for subbies to grow their own businesses.

“Importantly it will also mean more jobs, adding to the Palaszczuk Government’s impressive record of delivering 152,400 positions since Queenslanders turfed the LNP out of office in January 2015,” he said.

“These security of payment measures are part of the Queensland Building Plan that has been developed through the most comprehensive consultation on building industry reforms in this state’s history.

“Our industry and consumer stakeholders have worked tirelessly with us over the past two years to lay the foundations for a safe, secure and successful building and construction industry.

“We look forward to continuing to work with these stakeholders as we ensure Queensland’s building industry continues to lead the nation for many years to come.”

You can find out more about Building Industry Fairness reforms at http://www.hDw.Qld.qov.au/BuildingPlan/ ( http://www.hpw.qld.gov.au/BuildingPlan/)

[ENDS]

Media contact: Cat Milton 0410 644 113

Audio: click here to download audio grabs (external site) ( http://bit.ly/2BVsKEK)

http://statements.qld.gov.au/Statement/2018/3/1/palaszczuk-government-securing-payment-for-subbies Page 2 of 2 Housing Minister de Brenni defends tough subbies laws | Quest News 13/7/20, 1:35 pm

®ourtenimail+

LOGAN

LOGAN Housing Minister defends tough laws to protect subbies The State Housing Minister has defended his government’s stance on protecting suhhies “ripped off under a broken system” as the Opposition calls his department out for not doing enough fast enough, saying the industry is in crisis.

Judith Kerr, Quest Newspapers Subscriber only | February 6, 2019 11:59am

HOUSING Minister Mick de Brenni has defended his government’s tough stance on protecting subbies “ripped off under a broken system”, after today’s revelations tipping further collapses in the construction industry. .

The Springwood MP was responding after News Queensland this morning released details of 65 builder collapses across the country, but the Opposition says Labor has not done enough to protect subcontractors and suggested the industry is in crisis.

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Mr de Brenni said penalties, including jail time, were now in place for mishandling stubbies’ money under this system and he sympathised with those who had been ripped off.

o Housing and Public Works Minister Mick de Brenni has defended the state’s tough stance on protecting subbies. Picture: Clare Armstrong The state introduced tough measures on January i to crack down on unscrupulous practices in the building industry, legislating mandatory minimum financial disclosure requirements.

The new rules ensure the Queensland Building and Construction Commission has greater insight into a company’s financial health.

In December, subbies were also guaranteed enhanced security of payment.

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The state has also promised to evaluate the Project Bank Accounts that now apply to all government projects between $im and $iom, before rolling out to all private sector projects over $im.

An evaluation report on Project Bank Accounts will be completed next month.

Mr de Brenni has pushed for the tougher measures since 2016 and said a block of units in Springwood was part of the trigger for the statewide building industry inquiry into the failed Cullen Group.

In October, Mr de Brenni vowed to get to the bottom of the 2016 Cullen Group collapse, which left up to 30 subcontractors who built the units out of pocket.

The Springwood property, on the corner of Cinderella Dve and Athena Grove, is in the heart of Mr de Brenni’s electorate.

• Construction company collapse inquiry

O Housing and Public works Minister Mick de Brenni outside the Springwood units which triggered the inquiry into the failed Cullen Group. At the time, Mr de Brenni, who called for the inquiry before the 2017 election, said he was heartened by the $300,000 the industry watchdog would contribute for the investigation which would also delve into the failure of Queensland One Homes.

As part of a public examination, directors of the two failed companies were to appear before the Federal Court to give evidence.

The QBCC will play an observatory role for the Cullen Group Australian investigation and act as a committee member for the inquiry into Queensland One Homes.

Speaking outside the now-tenanted units in Springwood, Mr de Brenni said most of the subcontractors on the units still had not been paid, two years after the Cullen collapse which left debts of about $18 million.

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'‘Everyone in the building industry deserves the confidence they will be paid on time, in full, every time

I ... my resolve to deliver effective security of payment reforms has never been stronger,” he said.

“I agree with subbies and the builders who do the right thing. The rules were broken and they needed to change.

“There’s now a fairer progress payments process, streamlined adjudication procedures for disputes and greater protection of retention moneys.

“Importantly, this reporting system is backed by tough penalties for anyone who breaks the rules,” he said.

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WHY MORE BUILDERS WILL GO BROKE

f He said Cullen Group was like many other building companies aroimd the state which had used subcontractor funds to build their projects.

But he slated the lack of financial accountability back to a previous LNP state government when the then-Housing Minister “watered down” financial requirements including forcing builders to report their financial status to the Queensland Building and Construction Commission.

The Shadow Minister for Housing and Public Works, Michael Hart, said promised reforms had taken to long to be pushed through and that subcontractors deserved to be paid for the work they do.

“These are small businesses, often sole operators, who are the heart and soul of the Queensland construction industry,” he said.

“When Labor were elected in 2015, they promised the world but have failed to deliver.

“We’ve seen a lot of the political blame game from Mick De Brenni, but promised reforms have taken too long.

“Building approvals have fallen for ii consecutive months, which is a reflection of the industry downturn.

“The industry is in crisis and needs a circuit breaker to restore confidence.

“The Queensland Building and Construction Commission was introduced by the LNP as a tough new cop for the building industry - it was given the enforcement powers to take action of these issues but has been weakened by Labor and stacked with Labor mates and union hacks.

“In my opinion has the QBCC has failed in its duties and so has ASIC.

I also remind people that the minimum financial requirements for builders wasn’t altered by the LNP.

“The reporting requirements were changed, but builders were still required to meet those standards - so this is an enforcement issue pure and simple.

“We back calls for a dedicated police taskforce to investigate cases of fraud and start prosecuting people for breaking the law.

“Queenslanders deserve to have confidence that they can build their dream home and get what they pay for.”

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BUSINESS Pain ahead for building industry as subbies call for action

CJ Bill Hoffman •13th May ff 2020 > 12:18 PM

Subscriber only

The State Government has warned there is more pain coming for the building and construction industry. Picture: Marcel Baum A 40 PER CENT reduction in new home contracts will "see a hell of a lot more" pain to come for the Queensland construction sector as the pressure comes on poorly structured construction companies, according to Housing and Public Works Minister Mick de Brenni.

Mr de Brenni has called on the Federal Government to introduce a stimulus package similar to the school halls and social housing initiatives introduced during the Global Financial Crisis by then federal treasurer Wayne Swan. He said he had yet to hear what the Prime Minister was doing in that space. >

Mr de Brenni said the Queensland Building and Construction Commission (QBCC) was placing licence conditions on builders at a rate that underscored the pressure the crisis had placed on those without robust structures.

"There will be a large number of businesses across all licence classes that will struggle," he said. Mr de Brenni said minimum financial requirements were uncovering hundreds of builders across all licence categories who had been sailing too close to the wind and were the main culprits when it came to non-payment. He rejected criticism from key industry group the Subcontractors Alliance that the Palaszczuk Government's slow implementation of Project Bank Accounts meant to guarantee payment security represented a broken promise. Mr de Brenni said the his government did not waiver from its commitment to deliver Project Bank Accounts. Alliance head Les Williams, speaking in the wake of the latest building company collapse on the Sunshine Coast, said 85 per cent of the industry responsible for employing 250,000 Queenslanders had been placed at greater risk by the tardiness.

Administrator FTI Consulting has yet to release data on the total debt left by the ROD Group and RGD Constructions.

Mr Williams said if Project Bank Accounts were already in place, nearly seven years after the Walton Construction

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Housing and Public Works Minister Mick de Brenni says there are tough times ahead for Queensland's construction sector but has again promised the roll out of Project Bank Accounts. Picture: Alix Sweeney

collapse in 2013 rocked the industry, subbies would still not be being caught by failed builders.

He also took aim at the Queensland Building and Construction Commission, calling for it to be disbanded in its current form.

"The QBCC knows false statutory declarations (that subbies have been paid) and false financials are mechanisms of fraud," he said.

"But we’ve seen no significant investigations or charges laid. We’ve said repeatedly this won’t stop until someone goers to jail for destroying small businesses and their families."

Mr de Brenni said the criticism was not justified with Queensland the only state to legislate for Project Bank Accounts and the only state with the accounts on government contracts.

"It’s been a long time coming but we want our system to be a model for the rest of the country," he said.

"I wouldn’t want to be a tradie in any other state. We are at the end of a process started in 2015."

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Les Williams of the Subcontractors Alliance has called for speedy introduction of security of payment measures for the industry.

Mr de Brenni said legislation would come before parliament as soon as a window opened, with the current priority on the health of every Queenslander. Get Local News a Straight to Your Inbox^ Sign Up Today gi

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