Presented by Robert Clark MP		www.robertclark.net

HIH COLLAPSE: GOVERNMENT FUMBLES AGAIN

News Release - Saturday, 12 May 2001

The Bracks Government's delay in responding to building industry problems arising from the HIH group collapse has shown once again its inability to handle difficult situations, Shadow Planning Minister Robert Clark said today.

"Just as Victorians were hit with unnecessary power blackouts last year, so the Victorian building industry has suffered weeks of unnecessary disruption and job losses due to the Government's delay and indecision," Mr Clark said.

"The Opposition called three weeks ago for the Government to act so that the building industry could keep working.

"We put forward specific proposals for the Bracks Government to enable the building industry to obtain temporary global insurance cover - paid for by the industry, not taxpayers - while the paperwork was being processed for HIH insured builders to obtain individual replacement cover.

"Yet it has taken Finance Minister Lyn Kosky three weeks to accept the need for action and take a proposal to Cabinet."

Mr Clark said that as late as Tuesday last week, the Premier told Parliament that 'the Victorian government has acted quickly to resolve these matters for builders and other insurers in Victoria.'

On the same day, Minister Kosky attacked the Opposition's proposals in Parliament and claimed that 'builders should not have their work held up for extended periods because of insurance problems'.

Premier Bracks also told Parliament that the Building Control Commission was providing builders with 'assistance and support on reinsurance matters'.

"We have since found out that this 'assistance and support' consists simply of a phone call telling builders they must stop work if they don't have insurance, and giving them phone numbers to call to try to get a policy," Mr Clark said.

"Yet many builders are telling the Opposition that they haven't been able to get insurance cover when they do ring those phone numbers, because the insurers are so overloaded with applications.

"To make matters worse, one of the insurers to whom the Building Control Commission has been referring builders - Australian Home Warranty - hasn't yet been able to issue policies because of hold-ups in getting State Government clearance for their documentation. This hold up was not resolved until days after the BCC started telling builders AHW were available to provide insurance.

"The Premier has been playing politics with this issue by talking about State Government inquiries into Federal Government responsibilities. This would simply add more taxpayers' money to the millions already lost with the ambulance Royal Commission.

"The Premier should acknowledge that building standards and insurance are a State responsibility and it is up to the State Government to make sure that Victorian builders can keep working.

"This has been a saga of complacency, mismanagement and political game playing by the Bracks Government, and Victorian builders and consumers have suffered as a result. The Government must now focus on getting its package right and repairing some of the damage it has caused."