Calls to protect payments following builder collapse

March 15, 2023 11:27 AM AEDT | By AAPNEWS
 Calls to protect payments following builder collapse
Image source: AAPNEWS

The federal government has been urged to do more to protect worker payments following the collapse of several construction companies.

Independent senator David Pocock said the federal government was overdue in reforming the area to ensure subcontractors who have completed work receive their pay, should companies go under.

The comments come in light of the collapse of PBS Building, which left the future of many construction projects in NSW, ACT and Queensland up in the air.

Senator Pocock said a 2017 review calling for improvements in payment security legislation had not been enacted, leaving thousands of workers in the building sector at risk.

"We've seen no action from the ACT government or the federal government and it's not good enough, we have to act on this now to protect tradies who have done work," he told reporters in Canberra on Wednesday,

"We have the review, we have all the recommendations, we know how to deal with it, we need the political will."

The review, conducted by John Murray, made 86 recommendations at the time, including a harmonisation of payment security laws across the country, with different rules in place in different jurisdictions.

CFMMEU national secretary Zach Smith said the implementation of the reforms was urgent, given more than 1300 businesses in the sector have collapsed in the current financial year alone.

"This is endemic in our industry. We've had yet another corporate collapse and millions owing to subcontractors who have performed work, and this is work that's already been completed," he said.

"It comes to a very basic principle that you should get paid for the work that you've performed. But unfortunately, that doesn't happen in the construction industry."

Unions and advocates have called for a statutory trust to be set up that would protect money owing to subcontractors for work, should a company go into administration.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.