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.