Home building industry
Jess WILSON (Kew) (14:19): My question is to the Assistant Treasurer. As a result of the clear regulatory failures by the Victorian Managed Insurance Authority, many Victorians who are the victims of builder collapses such as Hallbury Homes have lost their deposit and with it their dreams of owning a home. Given the government will compensate Porter Davis customers, will the government also compensate other homebuyers who have lost their hard-earned deposits?
Danny PEARSON (Essendon – Minister for Government Services, Assistant Treasurer, Minister for WorkSafe and the TAC, Minister for Consumer Affairs) (14:20): I thank the member for her question. I offer my sympathies to those people who entered into a contract with Porter Davis as well as any of these other companies.
Members interjecting.
The SPEAKER: Order! Leader of the Opposition! Assistant Treasurer!
Members interjecting.
The SPEAKER: The member for Lowan can leave the chamber for 1 hour.
Member for Lowan withdrew from chamber.
Danny PEARSON: As I was saying, it is becoming increasingly clear that the responsibility remained with Porter Davis to take out domestic building insurance for their clients, and they should have. That is why the government has stepped in to take action to try and deal with these matters in a one-off relief scheme. We are also investigating claims of unconscionable conduct, and we are considering further reforms to make sure this does not take place again. In relation to the specifics that the member raised, we will look at this on a case-by-case basis. But it is our expectation that builders and building companies do the right thing, and I think the overwhelming majority do the right thing –they do take out building insurance at the time those deposits are taken. That is the expectation I have. It is the expectation the VMIA have. In relation to the matters that the member has raised, we are happy to look at them on a case-by-case basis.
Jess WILSON (Kew) (14:21): The Assistant Treasurer was briefed in July 2022 about insolvencies in the residential construction sector and options to de-risk consumers. The minister failed to act. Why did the minister fail to protect thousands of Victorian homebuyers who have now lost their deposits or have been left with half-built homes?
Danny PEARSON (Essendon – Minister for Government Services, Assistant Treasurer, Minister for WorkSafe and the TAC, Minister for Consumer Affairs) (14:22): I do not accept the basis of the member’s question. As one would expect, the government is briefed on a wide range of issues from time to time. Since we were elected we have constantly engaged with business, with unions and with other stakeholders to get an appreciation in relation to what is happening at a broader macro level. In my portfolio I commissioned the supply chain review to ease the supply chain pressures that the industry faces, and I also invited industry consumer and union representative groups to be part of a residential construction working group. I think the other point to make too is that we are making these investments to pump prime the economy, if you look at our Big Housing Build, if you look at the broader Big Build – the investments that we have made – which those opposite have tried to cancel. They have tried to cancel the Suburban Rail Loop project not once but twice, and it has been comprehensively rejected. We have made these investments to support the community and the economy.