- Home
- Hansard & Papers
- Legislative Assembly
- 6 November 2001
Home Warranty Insurance
Printing Tips |
Print selected text
| Full Day Hansard Transcript
« Prior Item |
Item 45 of 46
| Next Item »
About this Item
Speakers - Maguire Mr Daryl
Business - Private Members Statements
|
Page: 18161
Mr MAGUIRE (Wagga Wagga) [6.35 p.m.]: Several months ago I raised in this place my concerns relating to home warranty insurance. Builders in my electorate were sitting around twiddling their thumbs because of their inability to obtain home warranty insurance. The subject was raised in the media and it was talked about in the industry. With the help of the commercial response unit and the city council, we convened a public meeting in Wagga Wagga, which some 65 builders and people involved in the industry attended. At that time 33 applications for buildings were held up in Wagga Wagga City Council because of the inability of builders to obtain home warranty insurance. We were so concerned at that time that we formed a task force to work on the issues and to resolve the concerns expressed by builders. I then raised again in this House the concerns of builders and people associated with the industry.
The Minister came down to the House and responded, and finally some action was taken. Since then, most of the builders' problems that I spoke about have been resolved. In fact, the builders who have made contact with my office have had their applications fast-tracked through the department. Most of the builders have obtained home warranty insurance bar four. Recently I faxed the details of two builders to the Minister's office for action, and I faxed the details of the other two builders about a fortnight ago. I thank the staff of the Minister for Fair Trading for keeping my office informed. In trying circumstances, they have done their best to assist our builders. While I recognise that at times builders were still experiencing delays of up to two weeks, builders have contacted my office and thanked me, and asked that I pass that thanks along because they are back at work building houses.
Subsequently I wrote to the Minister and requested that a forum be held in Wagga Wagga. That forum should consist of HIA, Dexter, Fair Trading and builders to work through the issues in the home warranty insurance scheme. Ideally, if a third insurer is approved by the time a public meeting is held in Wagga Wagga that would go a long way to help smooth out the bumps in the building industry. I understand that the Minister has agreed to hold a forum in Wagga Wagga and I thank him for that. Who said that there is no co-operation in politics? It appears that our representations have been effective, and the Minister's response has been appropriate. This is the first step to resolving some of the problems in the home warranty insurance scheme.
Obviously, the second step is to rectify the fundamental problems identified by the builders in the industry. The task force is working on that as we speak. Indeed, it is constructing a paper which it will submit to the Minister. More importantly, the task force will make a submission to the national inquiry into home warranty insurance, which covers all the State. The national inquiry was necessary because I understand the problem exists in other States as well. The task force consists of builders who have a long history in the building industry, as well as some younger builders. The problems with home warranty insurance and the current constraints are such that they are affecting the ability of younger builders to get into the home building industry because they do not have the necessary capital to fund the buildings.
Young builders can construct about six homes a year, but the amount of capital or collateral necessary for warranty insurance is unattainable for many young builders. Even some older builders do not have the dollars and cents to back up building applications. So there is a fundamental problem. The message I bring today is that our builders are willing to work to resolve the issues. I can tell the Minister categorically that the public meeting, which I understand will be announced very soon, will be well attended. I will be promoting the fact that the meeting is to be held, and I will be encouraging builders, tradespeople and suppliers to attend the meeting and to bring their concerns to HIA, Dexter and the Minister's department. Once again I thank the Minister for responding to my calls, for acting and for keeping me informed of his efforts on behalf of the builders.
Last modified 05/12/2007 16:39:08 : Update this page