Ms CARTER - 2000-08-15
He has spoken in the past about introducing a building indemnity scheme. Can he give the House an update on that?
ANSWER
Mr Speaker, later today I will be issuing a discussion paper on a residential building indemnity scheme. It will demonstrate this government’s determination to seek the public’s input into the formation of legislation - unlike you mob on the other side who just want to introduce southern legislation into this House without any consultation.
However I did, prior to developing this discussion paper, go and discuss first-hand with the states their indemnity insurance schemes. We looked at those schemes Australia-wide and we believe that our proposal will certainly provide a good, practical solution to the issue of consumer protection for those many Territorians who wish to build a home.
I point out that one area that we will not embrace is builder registration. This government, as we have said many times in this House, is all about removing red tape from all levels of business. I believe that builder registration would add an unnecessary level of red tape to the industry.
The level of protection that the residential building indemnity scheme offers will be in the form of financial compensation. It is also proposed to replace the current home building certification fund. I point out that presently there are a couple of funds in the Northern Territory where individual home builders can take out voluntary insurance against their builder.
The primary objective of this scheme is to avoid, or at least substantially minimise, the extent of the financial loss that can be incurred by a home builder through the non-completion of a domestic building contract, or certainly non–compliance with the Building Act. The scheme will provide a limit to the financial exposure of home buyers while still providing some working capital for the builder. That will happen through this residential building indemnity scheme.
Contractual conditions will be minimal, but they will require a maximum 5% deposit to be paid to the builder upon signing of the contract. Then all other progress payments will be subject to the receipt of a satisfactory inspection certificate for the completion of building works in the previous stages. I will be providing further details on this scheme when I table it in this House later today.
In closing, I remind members that this government is all about consultation. I believe this discussion paper that I will be tabling certainly encourages comments and I will be seeking those comments from both the building industry and consumers. I urge all people interested in this issue to take part in that comment process.
ANSWER
Mr Speaker, later today I will be issuing a discussion paper on a residential building indemnity scheme. It will demonstrate this government’s determination to seek the public’s input into the formation of legislation - unlike you mob on the other side who just want to introduce southern legislation into this House without any consultation.
However I did, prior to developing this discussion paper, go and discuss first-hand with the states their indemnity insurance schemes. We looked at those schemes Australia-wide and we believe that our proposal will certainly provide a good, practical solution to the issue of consumer protection for those many Territorians who wish to build a home.
I point out that one area that we will not embrace is builder registration. This government, as we have said many times in this House, is all about removing red tape from all levels of business. I believe that builder registration would add an unnecessary level of red tape to the industry.
The level of protection that the residential building indemnity scheme offers will be in the form of financial compensation. It is also proposed to replace the current home building certification fund. I point out that presently there are a couple of funds in the Northern Territory where individual home builders can take out voluntary insurance against their builder.
The primary objective of this scheme is to avoid, or at least substantially minimise, the extent of the financial loss that can be incurred by a home builder through the non-completion of a domestic building contract, or certainly non–compliance with the Building Act. The scheme will provide a limit to the financial exposure of home buyers while still providing some working capital for the builder. That will happen through this residential building indemnity scheme.
Contractual conditions will be minimal, but they will require a maximum 5% deposit to be paid to the builder upon signing of the contract. Then all other progress payments will be subject to the receipt of a satisfactory inspection certificate for the completion of building works in the previous stages. I will be providing further details on this scheme when I table it in this House later today.
In closing, I remind members that this government is all about consultation. I believe this discussion paper that I will be tabling certainly encourages comments and I will be seeking those comments from both the building industry and consumers. I urge all people interested in this issue to take part in that comment process.
Last updated: 09 Aug 2016