Page 1987 - Week 05 - Thursday, 16 May 2019
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(3) Does the ACT Government have information about the number of owners corporations that have been unable to obtain insurance for fires because of ACP cladding on their buildings; if so, can the Minister provide details.
(4) Has the ACT Government been contacted by owners corporations that have been unable to obtain insurance for fires because of ACP cladding on their buildings; if so, can the Minister provide details.
(5) In the event that owners corporations are unable to get insurance for fire because of ACP cladding on their buildings, and are therefore in breach of their statutory requirements under the Unit Titles (Management) Act, has the ACT Government considered (a) acting as an insurer of last resort; if yes, can the Minister provide details and (b) providing financial support for owners corporations to reclad their buildings; if yes, can the Minister provide details.
(6) What compliance checking is conducted by the ACT Government to ensure that owners corporations have the insurance cover that they are required under the Unit Titles (Management) Act.
Mr Ramsay: The answer to the member’s question is as follows:
(1) Aluminium composite panels (ACP) are used in a wide variety of buildings including single residential buildings. These may be used in only small quantities or as decorative features. It is not feasible for Government to identify all residential buildings with ACP cladding.
(2) Whether a building with ACP or any other cladding is unsafe in the event of a fire depends on a wide range of factors, including the type and location of the cladding, the fire source, the presence and maintenance of other fire protections in the building including emergency systems, fire suppression and resistance of the structure and evacuation pathways in the building.
(3) The Government is not aware that any owners’ corporations have been unable to obtain any insurance.
(4) It is important to note that building insurance is not necessarily related to the safety of the building occupants but to the potential damage to the building.
Building standards are primarily intended to protect building occupants while the building is being evacuated rather than prevent damage to the structure. A building that meets required safety standards may suffer wider damage in the event of a fire.
(5) The Government is working with other jurisdictions through the Building Ministers Forum to develop an Australia-wide approach to the issue in consultation with the insurance industry and industry stakeholders.
(6) Under the Unit Titles (Management) Act 2011 an executive committee is created upon the establishment of the owners corporation. This committee is responsible for ensuring the Corporation is compliant with legislated requirements, including those relating to insurance.
The executive committee of the owners corporation must give certain details about the corporation’s current insurance policies at each annual general meeting, providing members with oversight of compliance with these requirements.
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