Mr HENDERSON - 2001-05-31
The collapse of Di Mella Homes has left a large number of Territory subcontractors collectively suffering losses of over $600 000 arising from the work they did on government housing projects in Palmerston. Chief Minister, the government has its housing and Di Mella is in receivership. Unlike private sector contracts, your laws prevent the subcontractors from suing the owner of this project because it is a government job. Your do-nothing approach has left construction workers and subcontractors high and dry on one of your projects with no chance of recovering their money.
The opposition, by contrast, will take action and introduce amendments on the next General Business Day to the Workmen’s Liens Act, to remove the government’s privileged protection from legal action. Will you support these amendments?
ANSWER
Mr Speaker, with regards to the allegation of government’s involvement in Di Mella Homes and government’s subsequent action, it is worth Territorians understanding that the government relies on financial accreditation of contractors through an industry-driven organisation, Contractors Accreditation Ltd. Annual checks are undertaken by CAL. There was no indication from CAL that there were any problems with Di Mella. The department must pay the principal contractor for works completed or be in breach of contract. The department cannot pay subcontractors directly because the contract is between the department and principal contractor. If we were to pay subcontractors direct, we would still be legally bound to pay the contractor as well, effectively doubling the cost of works.
The Minister for Transport and Infrastructure Development can deal with the other issues.
Ms MARTIN: A point of order, Mr Speaker! There was a very specific question directed to the Chief Minister. Will he support our amendment to the Workmen’s Lien Act so that government can be responsible when they issue contracts?
Members interjecting.
Mr SPEAKER: Order! The Chief Minister.
Mr BURKE: Mr Speaker, to save time, I will not give a position on amendments we have not seen. We have not seen the legislation. The member gets up and parrots on. Get some details across to government and we will have a look at it.
The opposition, by contrast, will take action and introduce amendments on the next General Business Day to the Workmen’s Liens Act, to remove the government’s privileged protection from legal action. Will you support these amendments?
ANSWER
Mr Speaker, with regards to the allegation of government’s involvement in Di Mella Homes and government’s subsequent action, it is worth Territorians understanding that the government relies on financial accreditation of contractors through an industry-driven organisation, Contractors Accreditation Ltd. Annual checks are undertaken by CAL. There was no indication from CAL that there were any problems with Di Mella. The department must pay the principal contractor for works completed or be in breach of contract. The department cannot pay subcontractors directly because the contract is between the department and principal contractor. If we were to pay subcontractors direct, we would still be legally bound to pay the contractor as well, effectively doubling the cost of works.
The Minister for Transport and Infrastructure Development can deal with the other issues.
Ms MARTIN: A point of order, Mr Speaker! There was a very specific question directed to the Chief Minister. Will he support our amendment to the Workmen’s Lien Act so that government can be responsible when they issue contracts?
Members interjecting.
Mr SPEAKER: Order! The Chief Minister.
Mr BURKE: Mr Speaker, to save time, I will not give a position on amendments we have not seen. We have not seen the legislation. The member gets up and parrots on. Get some details across to government and we will have a look at it.
Last updated: 09 Aug 2016