Answers to Questions

BUILDING INDEMNITY INSURANCE

In reply to the Hon. J.M.A. LENSINK (13 May 2010).

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide): I am advised:

The Ministerial Council on Consumer Affairs has not made any decisions on Home Warranty Insurance, nor am I aware of any decision having been made by the Council of Australian Governments on the topic.

However, I have asked that the South Australian Office of Consumer and Business Affairs (OCBA) raise the matter of Home Warranty Insurance with South Australia's representative on the National Occupational Licensing System Steering Committee, as the body that will consider licensing eligibility requirements during the development of the National Occupational Licensing System.

3 & 4 The number of complaints varies from year to year. Overall, however, the number of complaints referred to OCBA remains small when compared to the level of building activity across the state.

When complaints are received, and builders are found to have acted unlawfully, I am advised that OCBA has a range of powers to take action against builders. OCBA has the power to suspend licences immediately in some circumstances and can take disciplinary action to have a builder's licence cancelled. OCBA can also seek an enforceable undertaking from the builder.