Dodgy builders face jail time as watchdog gets new powers
UNSCRUPULOUS bui l ders face jail time or hefty fines under plans to give Queensland’s construction watchdog sharper teeth.
Queensland Building and Construction Commission inspectors will be given power to seize documents and property from building companies suspected of financial irregularity under reforms introduced this week into State Parliament.
Housing and Public Works Minister Mick De Brenni said rising bankruptcies in Queensland’s construction industry warranted a crackdown on unscrupulous activity. Since the start of the year, small subbies and other creditors have lost an estimated $ 150 million as more than 30 building companies have gone under.
Describing the current powers of the QBCC as “pathetic”, Mr De Brenni said it was critical regulators had the power to do the task.
Under the reforms, builders could be jailed for up to two years if they fail to deposit funds earmarked for subcontractors into trust accounts.
“Previously, if someone made a complaint against a builder, they would be sent a polite letter and given a few months to respond,” Mr De Brenni said. “Now the regulator will be given broad and far- reaching powers to intervene before the bankruptcy can occur. This sends a strong message to dodgy operators.”
He said new powers would ensure the end of “phoenix” operators – builders who put a company into liquidation to avoid paying creditors.