Thursday June 6 saw virtually all the Alice Springs builders come together over concerns bought on by the introduction of the MBA Fidelity Fund by the previous Government as a kneejerk reaction to the Carey Builders failure.
This Last Resort scheme in the southern States has had devastating impacts on both builders and consumers with unimaginable outcomes, and has been maintained under an illusion as the regulatory oversight was removed by the instigators at the outset.
The nations consumer advocate ‘Choice’ in their written assesment of Last Resort refer to it as Junk policies/certificates not worth the paper they are written on, and making a mockery of consumer protection while the Productivity Commission state its been a running sore since inception.
Every State except Tasmania is undertaking a review of their consumer protection-warranty insurance regimes because of the constant critisism from consumers and the legitimate building industry associations however the one association being the Housing Industry Association (HIA) that has enjoyed the ear of Governments over the past decade considers the Last Resort Warranty Insurance concept they introduced back in 2002 that still manages our industry is appropriate today. HIA also enjoy the support of MBA Victoria.
“Conflict and anger”
Describes the warranty insurance regime in the states where Last Resort insurance exists and is inflicted on both the consumer and builder when a dispute arises.
The Baillieu, O’Farrell, and Barnett Governments all know the issues as they have conveyed them to their parliaments on behalf of builders and consumers over their years in opposition. (more…)
Builders Warranty Insurance — the great “scam”
These stories were on the front page of the AGE newspaper and one would hope they will prick the conscience of the Baillieu Government as this matter is now well beyond a joke and hurting Victorians in the extreme.
There is more to life than money and this insurance can be dropped with a stroke of a pen by your Government right now! (more…)
Today tonight presents a Consumer’s home as their biggest financial investment of a lifetime and asks is their new home protected by any warranty at all?
The answer is “No” (more…)
EXCLUSIVE: HUNDREDS of small family owned Australian builders are facing extinction because of Builders Warranty Insurance, according to a survey of over 1000 builders by PropertyReview.com.au conducted over the past month.
Builders in both Victoria and NSW are facing the increasing dilemma of not being able to get warranty insurance because thousands don’t meet new exacting insurance companies criteria. Insurance companies take none of the risk on warranty insurance and in fact are ‘illegally’ making builders sign indemnities where they personally face the total risk of the worthless insurance. (more…)