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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-09-14 Daily Xml
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Consumer and Business Services

Mr TEAGUE (Heysen) (14:42): A question to the Minister for Consumer and Business Affairs: is CBS providing assistance to the building industry to prevent further businesses being placed into liquidation? With your leave, sir, and that of the house, I will explain.

Leave granted.

Mr TEAGUE: On 13 September, Stephen Knight of the Housing Industry Association suggested that 'Consumer and Business Services and the building industry and the Government should be sitting down' to discuss how to improve the operating environment to prevent further impact to home builders.

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (14:42): I thank the shadow minister for the question. Yes, indeed, the government is working very closely with the building industry. I meet regularly with Stephen Knight from the HIA and Will Frogley from the MBA. The commissioner has had a number of round tables in the last 12 months with the construction industry looking at some of those issues.

It has obviously been a tough few months with a couple of insolvencies but, as I think the Premier mentioned in the last sitting week, we are actually quite below what the Eastern States are in terms of building insolvencies. I think we are at about 2.7 per cent of the national building insolvencies and I think we are at about 6.3 or 6.4 per cent of the construction industry here in South Australia.

So, yes, there is pressure on the construction industry flowing through from COVID and the reduction in supply of materials, significant increases in prices, labour shortages, all flowing through which has affected a couple of builders in recent months.

CBS is certainly working with consumers. For any complaints or concerns coming through CBS, there is a conciliation process that CBS can assist with for builders and consumers to resolve any issues. A lot of those issues are around delays and we are hoping to see that ease as supply issues are dealt with in the next little while. We are seeing that happening at the moment. The price increases are certainly not what they were, at something like 30 per cent or more for some products in the last couple of years.

CBS is also the regulator of builders, so in terms of a licensing perspective they also have a role to play in that. For example, Felmeri was one of the recent insolvencies. There are some allegations that CBS is investigating in relation to the Felmeri homes and the Felmeri directors in terms of breaches of the Building Work Contractors Act. As other parts of government are, CBS is working very closely with the building industry to support them through this difficult phase and see a very prosperous future for the building industry in South Australia.

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