Felmeri Group

The Hon. D.J. SPEIRS (Black—Leader of the Opposition) (14:23): My question is to the Minister for Consumer Affairs. Is the government providing assistance to customers of Felmeri Group? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. D.J. SPEIRS: South Australian home builder Felmeri Group was placed involuntary administration in recent days, leaving many customers anxious about whether their homes and associated infrastructure will be finished.

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (14:23): I want to thank the leader for that question. It has been a challenging time for a number of customers of Felmeri. I actually really feel for them. A lot of these people are in their 20s and 30s, going into first-home ownership. To say the last couple of years for some of those people has been quite distracting and really a distraught process for them is probably not underselling it.

As the leader said, Felmeri did go into administration, I think on 19 May, and about a week later ceased trading. The administrator is still there dealing with, obviously, the close-out issues. I understand there are about 53 projects that are incomplete at the moment, 57 contracts that haven't yet commenced and about 160 completed projects that are still covered by statutory warranties if any defects or the like are found.

Consumer and Business Services Commissioner Dini Soulio has been helping consumers for quite a period of time in the lead-up to the administration. The administrator was then appointed. That probably gave customers some relief in that the building indemnity insurance which QBE provides and which is a statutory requirement has now kicked in, so those consumers will be able to access their $150,000, or up to $150,000, under QBE to be able to get the work finished.

I understand there may be some customers who don't have that insurance. The commissioner is investigating at the moment, so I can't comment too much further on that, but if there have been any breaches of the Building Work Contractors Act the commissioner has the ability to prosecute if that is the case.

Having that insurance in place, anyone in this place who has constituents who have been affected, please get them to contact QBE. They have builders that they can refer people to to get that work done or to get rectifications done with access to that insurance policy. Consumer and Business Services is still helping many of those consumers as well through the process. Again, if anyone has consumers who are not clear on what the process is, please contact Consumer and Business Services and the commissioner and his team are well on hand to be able to support them through this difficult time. I do hope they get their homes finished and get into them as soon as possible now that the administrator has been appointed.