$122m injected to keep at-risk builders afloat
NEW powers given to the state's construction watchdog to ensure building companies have enough financial backing have seen more than $122 million worth of capital injected into the industry.
Housing and Public Works Mick de Brenni said the capital increase followed financial reviews of 269 licensees by the Queensland Building and Construction Commission.
The capital injection came from companies which were found to be operating with insufficient assets to support their turnover.
"The Queensland Building and Construction Commission (QBCC) has been compelling companies to raise and maintain an adequate level of working capital, in a step to reduce the risk of instability," Mr de Brenni said.
"The new laws brought in by the Palaszczuk Government in January have given the QBCC the power to lift the lid on licensees operating with unhealthy financial circumstances."
The QBCC has prioritised companies which appeared to be most likely at risk, with 765 major building companies set to have their financials assessed.
"Most have been found to be operating with adequate financial reserves, but a number were not," he said. "While the audit continues, these results, before we've even reached a half way mark, demonstrate the importance of obtaining these safeguards.
Mr de Brenni said there was no law that could provide an iron clad guarantee against business failure or financial mismanagement, but people who invest in Queensland and workers who establish their career in Queensland needed to be protected.
Regulatory action by the QBCC helped improve stability within the industry. "If a licensee doesn't have the asset base to support its turnover, we know that can be a recipe for disaster," he said. "The QBCC has told me they will take swift regulatory action against any licensee failing to meet the financial requirements."