CONSTRUCTION and building companies in Canberra have endured a brutal two years with more than one in every five ACT business collapses coming from the sector, leaving a combined $80 million trail of debt at the time they became insolvent.
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Research found 22 per cent of collapsed enterprises were companies in the construction sector, followed by retail on 10 per cent and accommodation/food businesses with 9 per cent, based on data presented to the ACT and Region Chamber of Commerce and Industry.
Nationally, the construction sector made up 18 per cent of all insolvencies.
As the ACT government brings in stimulus measures to boost the battling building trade, an analysis of Australian government figures outline in detail the full extent of damage sustained in the industry in the past two years.
More than 20 companies from the territory construction sector have been put under the control of outside insolvency experts in that time. In many of the cases money owed was not paid back at all or is still in doubt.
It comes as records show four more companies in the Canberra construction industry have been put in the hands of liquidators, administrators or receivers who say the companies owe $45 million-plus among them.
The biggest, Kenoss Pty Ltd, which called in an administrator in December, owes $28 million.
A related company, Kenoss Contractors, went into liquidation recently with $6.6 million of debt.
In March 2012 a man died, allegedly after suffering an electric shock at one of Kenoss Contractors' Canberra work sites, prompting Worksafe ACT to temporarily shut some of its sites because of safety concerns.
It is not known how much of its debts will be repaid.
While analysis of collapses in the industry shows creditors are often not able to recoup much of their money, there is hope for some.
The administrator appointed to Kenoss Pty Ltd in November, Henry Kazar, said creditors might receive all of their money back if the company's assets were sold for their expected value under an agreed deed of company arrangement. ''It's very rare (for creditors) to get back 100¢ in the dollar,'' Mr Kazar said.
Kenoss Pty Ltd's headquarters in Tennant Street, Fyshwick, has been sold for $4.8 million and this will go to repay debts.
Meanwhile, the receiver of Redevelopments Pty Ltd, which bought the Jamison Inn site for $8 million in 2008 but went into voluntary administration in late 2012, expects no repayments to creditors owed a total of $10 million.
The Masa Group of companies - Masa Constructions Australia, Masa Group and Masa Management - owed $3.9 million when it was put into liquidation in December. It was unknown how much of this would be repaid.
Australian Securities and Investment Commission (ASIC) records show another 14 companies from the ACT building industry have had winding up orders served against them, suggesting outstanding debts but not necessarily an indicator they would drift into insolvency.
Sustainable Development Minister Simon Corbell has ruled out an independent inquiry into Canberra's building industry, describing it as unnecessary.
His comment came after attention was drawn to the sector by reports Sublime Developments may have owed creditors $1.7 million to $2.5 million, according to the company's administrator.
A Sublime representative denied any wrongdoing within the company and said home buyers owed Sublime money.
The Master Builders Association of the ACT said the regulatory framework had failed to protect home buyers and law-abiding companies.
Creditors were not expected to receive any return from Tread Lightly Earthmoving, which went into liquidation last year owing $3.5 million after taking work at the ASIO building site in Russell.
The administrator of Ply Pty Ltd said the company owed $19 million to creditors, of which several million had been repaid, including all the employees' wages.
Troubled companies and their debts from the past two years
- Kenoss Pty Ltd - $28m
- Ply Pty Ltd - $19m
- Redevelopment Pty Ltd - $10.4m
- Kenoss Contractors Pty Ltd - $6.6m
- Masa Constructions Australia/Masa Group/Masa Management - $3.9m
- Tread Lightly Earthmoving - $3.8m
- EcoGlass Pty Ltd - $2.3m
- Modena Homes - $1.4m
- Kenworthy Constructions - $1.2m
- Prominent Edge Constructions Pty Ltd - $724,652
- Earth Constructions Pty Ltd - $708,912
- Capital Excavations - $414,410
- Grahams Building Equipment - $397,021
- To The Top Scaffolding - 377,609
- Design Additions Pty Ltd - $365,000
- Image Constructions - $346,775
- Canberra Commercial Joinery - $230,295
- Dial a Plumber Canberra Pty Ltd - $202,355
- Nagee Property Maintenance Pty Ltd - $164,761
- Windwood Homes - $160,000
- Kitchenex Pty Ltd - $151,966
- Stopi Pty Ltd (Stonehenge Pialligo Pty Ltd) - 146,135
- Centennial Homes (ACT) Pty Ltd - $128,375
- Marburg Construction Pty Ltd - $70,000
- Simcam Constructions - $58,550
Information provided by liquidators, administrators or receivers of respective entities. Dollar figures relate to when insolvency experts were called in.