Page 4811 - Week 13 - Thursday, 28 November 2019
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
We consider that it is appropriate for the new powers to apply in this way. The alternative is that the powers could be exercised only in relation to construction services provided after commencement. This would do nothing for existing problems and allow corporations to continue to avoid their obligations years into the future.
Each provision that is not retrospective does not have to expressly state that it is not retrospective. A statement is not necessary to aid interpretation, and may in itself cause confusion, especially because the legal concept of retrospectivity is not well understood amongst potential readers of the law.
On residential building insurance, we have heard arguments that because powers already exist to take actions against licensees, and there are requirements for certain buildings to have residential building insurance, the current laws are sufficient and no further powers are warranted. We would be very glad if that were the case. We would be thrilled if the ACT’s industry was unique and not subject to the same disreputable behaviours exhibited in other jurisdictions. But it is not. The ACT is not immune from these problems. The actions of some corporations in response to the exercise of existing powers has made this apparent. Residential building insurance does not provide a guarantee of completion or rectification of all works.
There are powers to take actions against licensees, but when those licensees are no longer in existence, those powers are ineffective. When the integrity of the regulatory system is undermined, it affects confidence in the industry itself. This has flow-on effects to the economy and investment in the territory.
Residential building insurance does not provide guarantee of completion or rectification of all works. A claim can be made only within five years, whereas a rectification order may be issued up to 10 years after the contravention. While there will be some interaction between the two systems, the registrar can revoke a rectification order if the problem can be resolved under the insurance system. And rectification orders are not generally issued unless the matter has not been resolved by another, less formal means.
On national reforms, across the country governments are amending laws and taking actions to deal with building problems. At a national level we have committed to reforms to strengthen regulators’ powers on compliance and enforcement action.
Minister Ramsay has made it clear that at no point has the Building Ministers Forum agreed that states and territories slow down their reforms to wait for others to catch up. Amendments in this bill are entirely consistent with recommendation 6 about regulatory powers in the Building confidence report.
We have been called on by industry to take action to prevent the reputations of those doing the right thing being brought down by those who are not. While the provisions potentially apply to all licensees, directors of good quality licensees producing good quality work will not meet the threshold for the powers to be exercised. Good quality work does not need to be rectified, or the subject of fines, penalties and occupational discipline. But good licensees will continue to be affected by the problems caused by others if we do not act.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video