NSW govt fed up with 'unethical' building firms: O'Farrell

24/05/2012 - NSW Premier Barry O'Farrell says the government has had enough of building companies that can't meet obligations and "screw" their subcontractors.

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O'Farrell was commenting after his finance minister Greg Pearce on Tuesday called construction company St Hilliers "grubs" and "dishonest" and said they "behaved like white-shoe brigade, 1980s developers".

Administrators were appointed to St Hilliers last week when associated company St Hilliers Ararat Pty Ltd went into liquidation after failing to complete the public-private expansion of Victoria's Ararat Prison.

St Hilliers still held a NSW government contract to build 13 housing commission lots, but on Tuesday it was announced NSW Public Works would take over the project.

O'Farrell said he shared Pearce's frustration.

"The concern and the frustration that not only Mr Pearce but other ministers have is with construction companies who enter into agreements, who take on contracts, who don't meet obligations and who inevitably seem to screw subcontractors," O'Farrell told reporters in Sydney on Wednesday.

"That's incredibly unfair, unethical, and frankly we've had enough of it."

St Hilliers said on Tuesday it was disappointed it had been sidelined by the government because it had given an assurance it would be able to reopen all of the public housing sites, complete them on time and on budget, and pay all subcontractors.

Source: AAP

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Have your say...

Henry | 24/05/2012 16:21 1

Will Premier O'Farrell do something constructive for subcontractors? Or will he bring in more regulations & costs for the subcontractors as previous governments have done? If Premier O'Farrell's government think such builders are "grubs", will he support the rights of employees or subcontractors to have unions assist them in dealing with such builders? Or will he support the return to individual contrtacts for all workers & see them being exploited just like the building subcontractors currently are?

Lou Furbadamo | 27/05/2012 01:05 2

The notoriously shonky NSW building companies have a worst than average reputation for dishonestly treating subcontractors that precedes them, even as far away as SA. Anecdotally, I've been told it has a lot to do with the culture and aggressiveness of the people that control these businesses nowadays. Notwithstanding, society generally seems to have an explosion of these grubs and rip off merchants, who daily effectively repeatedly defraud almost with impunity. Pathetically, the laws have not kept pace with these shonks. The only way to clean up the mess and reverse the trend is to beef up control laws and come down hard on offenders with substantial penalties and compensation for victims. Persistent repeat offenders and their associates, should be mercilessly forced totally out of the industry and every other similar position of public trust and contract dealings.

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