NSW: Subbies to be protected from unscrupulous operators

AAP General News (Australia)
02-15-1999
NSW: Subbies to be protected from unscrupulous operators

SYDNEY, Feb 14 AAP - New South Wales subcontractors and small suppliers would be protected
from unscrupulous developers under state government plans announced today, Premier Bob Carr
said.

The Security of Payment Plan would include legislative protection for New South Wales'
30,000 self-employed subcontractors, he said.

Industry groups estimate tradespeople lose more than $1 billion a year due to building
company collapses.

Mr Carr said the plan would target a small section of the building industry which set up
"phoenix companies".

"Before completing a major project these operators declare themselves bankrupt in order to
escape paying their subcontractors," Mr Carr said in a statement.

"These phoenix companies then reappear a short time later under a new trading name -
sometimes resuming work at the same site."

Mr Carr said the plan included spelling out intervals during which payments must be made,
increase to $10,000 the maximum disputed amount that could be heard by the small claims
division of the local court and ban "pay-when-paid" or "pay-if-paid" clauses.

AAP shm/was/de

KEYWORD: POLLNSW SUBBIES

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