South Australian Construction Companies

In reply to Mr COWDREY (Colton) (20 June 2024). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries): I have been advised:

Consumer and Business Services (CBS) was investigating 7 Star Construction in June 2023, following several consumer complaints regarding delays in the completion of building works by the builder. SAFA informed me of the issues with 7 Star Construction in June 2023.

In August 2023, CBS informed SAFA that the builder had appointed an administrator, following which SAFA then informed my office and the office of the Under Treasurer of the appointment.

I was informed by SAFA that Felmeri's eligibility for building indemnity insurance had been restricted by QBE in March 2023, due to delays in the completion of building works by the builder. CBS advised SAFA that Felmeri had appointed an administrator in May 2023, following which SAFA then informed my office and the office of the Under Treasurer of the appointment.

It is not uncommon for SAFA or CBS to become aware that a builder is displaying signs of being at risk of a building indemnity insurance claim event, before the event occurs. Due to the commercially sensitive nature of that information, it is not usually commented on publicly at that time, as it may diminish any opportunity the builder may have to recover and continue to operate.