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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-11-14 Daily Xml
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STATUTES AMENDMENT (OCCUPATIONAL LICENSING) BILL

Second Reading

Adjourned debate on second reading.

(Continued from 31 October 2013.)

The Hon. T.A. FRANKS (16:40): I rise on behalf of the Greens to speak to the Statutes Amendment (Occupational Licensing) Bill. The Greens are not looking to take up too much chamber time on this measure. However, we do have a few concerns that we would like the minister to address. The government's intention with this bill is to—and I quote from the minister's speech—'reduce regulatory costs for businesses by removing unnecessary red tape and to improve administrative efficiencies for the Consumer and Business Services'.

It is my understanding that currently in order to be a builder one must be suitably qualified and experienced in the building industry and obtain a building licence to run a company. In order to set up a company the person or persons must have adequate qualifications and experience and the company must also have a director or employee who is nominated and has the appropriate qualification and experience in the building industry.

The company director is responsible for the company and accountable to the company, both in the long and short terms. However, under this bill businesses can remove the requirement for companies to nominate their directors or employees to be building work supervisors. Under this bill it appears we remove the requirement to have the appropriate qualifications, experience and building licence to run a company, and therefore anyone under this bill can run a company. If that is true, I certainly ask the minister to clarify that interpretation.

I ask the minister also: if this provision is removed, who in the company will be accountable when something goes wrong? What happens when a worker who has not been paid their superannuation or annual leave looks for redress, or when a subcontractor has not been paid? Who will be the responsible person when a client has issues to raise and what responsibility does the building company have? The Greens request this clarification from the minister around this issue due to concerns raised with us in our consultations on the bill.

Another major concern that has been raised is that it is claimed that this bill allows builders who are bankrupt to work as subcontractors, even though they are bankrupt. With what justification has this move been undertaken? Can the minister clarify what happens in the case of a subcontractor who goes bankrupt, then continues to work as a subcontractor and becomes bankrupt again? The Greens are very eager to see the minister's response to these issues. With that, I look forward to the second reading summary or the committee stage.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (16:43): I thank honourable members who have contributed to this debate. The purpose of this bill is to reduce regulatory costs for businesses by removing unnecessary red tape and improving administrative efficiencies for consumer and business services, whilst still continuing to protect the public and consumers. The development of the bill was initially by feedback received by the government during industry roundtable discussions with peak construction industry representatives in 2012.

Consumer and Business Services is not aware of any industry opposition to the bill. Industry has supported the further rationalisation of regulatory requirements and improved consumer protection measures in this bill. In relation to the amendments allowing bankrupts and directors of companies that have been wound up to work as subcontract builders, I have been advised that at present under the Building Work Contractors Act 1995 a person who becomes bankrupt is prohibited from holding a building work contractor's licence for 10 years from the date of discharge. Similarly, a person who was a director of a company wound up for the benefit of creditors is prohibited from holding a building work contractor's licence for 10 years from commencement of the winding up. Effectively, this can put a tradesperson out of work in their field for many years.

The proposed changes to the Building Work Contractors Act 1995 are aimed at allowing tradespeople to continue to work in their field of expertise in a limited capacity. By implementing these reforms, tradespeople will be able to make a living in their field as they will be able to work as subcontractors. Restricting the licence to that of a subcontractor means that consumers are still protected as these tradespeople would be required to engage in a contract with a fully-licensed builder rather than directly with the consumer.

The licensed builder would be responsible for all the warranty work. It should also be remembered that a person who becomes bankrupt has suffered a financial failure. This financial failure may be through no fault of their own but rather, for example, as a result of a business contractor defaulting on major progress payments.

I also want to talk about the importance of occupational licences generally. Occupational licensing is in place to protect consumers from unsafe or incompetent work and poor business practices. This has clear benefits for consumers and it is also beneficial for businesses in that it reduces unfair competition from unqualified or unsuitable people. Regulated industries gain credibility through the licensing system and an assurance that minimum competency standards have been met by all licensees. This in turn increases consumer confidence and allows licensees to easily prove their ability to perform regulated work to potential employers or customers.

The licence provides a certification by government to show that the holder has skills and attributes which enable them to charge fees above base labour rates. Part of the fees paid by licensees is used to process licence renewals, which includes time spent checking information provided and generating licence cards. The fees also cover the cost of maintaining a public register of licensees; ensuring compliance with the legislation, including investigating alleged breaches; providing advice to traders and customers about their obligations and consumer law; regulatory development; investigation into appropriate qualifications and licensing criteria; and the cost of educating traders and consumers alike. The administration of industry regulation does not stop at simply issuing a licence.

The government is conscious of regulatory burdens for business and actively works towards minimising them, particularly for small businesses. This is one of the driving factors for this bill. If there are any questions that I have missed I will be happy to deal with them during the committee stage.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (16:49): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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