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Parliamentary Questions


Question Without Notice No. 128 asked in the Legislative Council on 25 May 2021 by Hon Dr Steve Thomas

Parliament: 41 Session: 1

PINDAN GROUP — HOME INDEMNITY INSURANCE

128. Hon Dr STEVE THOMAS to the minister representing the Minister for Commerce:

I refer to the collapse of construction and property company Pindan Group, which has gone into administration owing up to $100 million to workers, subcontractors and creditors.

(1) As the state underwrites home indemnity insurance for residential construction, what is the potential liability to taxpayers as a result of Pindan's collapse?

(2) How many residential properties are now at risk of not being completed as a result of Pindan's collapse?

(3) What premiums have been paid into the home indemnity insurance reinsurance account by Pindan over the last 12 months?

(4) Given the McGowan government's failure to pass legislation to protect subcontractors in its first term of government as it was not considered urgent, will the McGowan government guarantee payments to those contractors affected by this collapse?

Hon ALANNAH MacTIERNAN replied:

I thank the member for the question. The following information has been provided by the Minister for Commerce.

(1) It is estimated that the maximum total number of claims from the home indemnity reinsurance account will be around $10 million.

(2) The number of incomplete residential properties is around 100. The affected consumers will be able to access home indemnity insurance to complete the work.

(3) The amount paid is $501 779.30.

(4) We are introducing the Building and Construction Industry (Security of Payment) Bill 2021 today. The Building and Construction Industry (Security of Payment) Bill 2020 passed through the Legislative Assembly in November 2020, but, unfortunately, did not make it through to the Legislative Council due to the opposition members' refusal —

Several members interjected.

Hon ALANNAH MacTIERNAN: — to sit beyond the scheduled 2020 parliamentary year to consider the bill. This bill improves the security of payment across the WA building and construction industry and complements measures already delivered through the expanded use of project bank accounts on government projects.