BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 5 March 2009. Page 1860.)

Mr VENNING (Schubert) (11:12): South Australia is currently the only state in Australia which does not have legislation in place mandating good payment practices in the construction industry. I think we are all aware of this issue in our own personal lives, and this bill seeks to address this simply by implementing such legislation.

Security of payment is a term used mainly by subcontractors to describe the need to secure long-term guaranteed arrangements for payment for work performed or material supplied. The construction industry operates under a hierarchical chain of contracts system, which means that if one element in the chain collapses or fails to pay a debt it can create an enormous financial strain on other parties in the chain. In other words it is like a domino effect: one part of the chain needs to be paid so that, in turn, they can pay their bills.

We are all very much aware of companies who get into financial difficulties because of other contractors down the line; in fact, if one goes broke it often takes two or three others with them. This bill will provide the construction industry with a procedure for claims for progress payments by people carrying out construction work, for the provision of a payment schedule by a person owing money, indicating the amount they will pay, and referral of disputed claims to an adjudicator for determination on payments to be made.

It is my understanding that, following consultation with stakeholders, there is general support for this legislation and, as such, the opposition supports the bill. I believe the Hon. Iain Evans would certainly agree, being a member of this place and owning a building company. It is well worth supporting; I know that the opposition supports it and I hope the government will also, because I cannot see any reason at all—

Mrs Geraghty: The bill comes from this side.

Mr VENNING: It is your bill; Tom is waiting for amendments. The opposition supports this; I cannot understand why it was delayed.

Mrs Geraghty interjecting:

Mr VENNING: Can we not do those amendments between now and the other place? I cannot understand why you introduce a bill, we are well through it and now you—

Mrs Geraghty: Don't go down that path.

Mr VENNING: You want to bring in your own bill—that is all right: I am not getting excited. I am just wondering why we cannot speed this through the process as we are agreeing with it and people out there right now are certainly being affected by this. The quicker we can do this the better; we support the bill.

Mrs GERAGHTY (Torrens) (11:15): I will adjourn it, as we are waiting for amendments which will improve the bill.

Debate adjourned on motion of Mrs Geraghty.