A group of Canberra-based subcontractors has made an emotional call for political action as a spate of what it calls "disgusting" builder insolvencies in the ACT cause significant hardship in the local construction industry.
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Amid a climbing rate of business insolvencies, independent ACT senator David Pocock wants the Albanese government to support tradies by urgently introducing stronger security of payments for subcontractors.
Four high-profile ACT builders have gone into administration in the past two months alone, with about 200 mainly Canberra projects impacted. The latest insolvency is Canberra firm Project Coordination, which is part way through a $12 million government project to build a 17-metre-tall "floating cube" conservatory at the Australian National Botanic Gardens.
Anthony Lloyd, who runs a commercial carpentry subcontract company, said he has been caught up in four builder collapses in the past six months.
"It's hard-earned taxpayers' money that is going to contractors that are going into administration. Where is that money going?" he told reporters at a Parliament House press conference organised by Senator Pocock.
I call on the government - they are making bold announcements around 1.2 million homes over the next five years. Well, who's going to build them? Who's going to build them if we aren't actually looking after tradies in this country?
- David Pocock
"That is us hardworking Australians. Sorry, I'm getting a bit emotional ... but this has been the past six months. Even longer than that. Me, as a family, is working very hard and it's taking a very big mental capacity on my family life and my mental health."
"It's disgusting. It's just ... something needs to be done. I call on all the politicians to take me seriously because you will not have a construction industry. You will not have workers in the industry in years to come."
"Everyone's feeling the pinch. Everyone's had enough."
'Fundamentally unjust'
Joe Wainwright from the Hume-based Wainwright Facades said businesses such as his are being left "high and dry".
"This situation is not just unfair, it's fundamentally unjust. Subcontractors should not be left holding the bag and production businesses go under," he said. "They deserve to be treated fairly and to receive compensation they've rightfully earned."
"Furthermore, we need greater transparency, transparency and accountability within the construction industry. Companies that should be held accountable for their financial obligations to subcontractors and any attempts to circumvent these responsibilities must be met with swift and severe consequences."
Chris Nowaczyk from small joinery business The Works said there is work in Canberra and a lot of projects are coming up.
But he said the money is going elsewhere, which is killing local businesses.
"The issue with the person who let us go down is that they were taking money from ACT and NSW into Queensland to pay the debts there," he said.
"The money is supposed to stay here to help the local businesses. It's fair they try to help someone out but, you know, we want to run business in ACT and we need local support."
Government must 'step up'
Senator Pocock has written to the Minister for Employment and Workplace Relations Tony Burke, the Industry Minister Ed Husic, and the Minister for Housing Julie Collins.
The letter is cosigned by John Murray, who led the National Review of Security of Payment Laws six years ago as well as union leaders - CFMEU national and ACT secretary Zach Smith, the secretary of the Electrical Trades union Michael Wright, and the CEO of the national Electrical and Communications Association Oliver Judd.
The senator said tradies should not be left out of pocket when a builder collapses.
"I call on the government - they are making bold announcements around 1.2 million homes over the next five years. Well, who's going to build them? Who's going to build them if we aren't actually looking after tradies in this country?" he said.
"I ask the Coalition and Labor to step up. Introduce security of payments so that tradies simply get paid for the work that they've already done. We have the solutions. We need the major parties and we need the Labor government to step up."
The Canberra Times understands the government has committed to respond to the Murray review before the next election, but the recommendations primarily sit with the states and territories.
"The government sees the challenges currently facing the construction industry, and understands the impacts to those businesses and the workers, customers and homeowners who rely on them," a government spokesperson said in a statement.
"People should be paid for the work that they do.
"Our government stands for fairness, and will work with the states and territories and with the sector to do our part in supporting the construction industry."