Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Labour to protect subbies in construction failures

Clayton Cosgrove
Commerce Spokesperson

17 April 2014

Labour to protect subbies in construction failures

Labour’s Commerce spokesperson Clayton Cosgrove will introduce a supplementary order paper to the Construction Contracts Amendment Bill to ensure subcontractors are paid for the work they’ve done when construction companies collapse.

“As we’ve seen with the likes of Mainzeal, the biggest losers in construction company failures are subcontractors,” says Clayton Cosgrove.

“The hundreds of subbies affected are at the back of the creditor queue and are the last cab off the rank when it comes to payments.

“Last year Labour said it would work with industry to develop a solution to protect the payments that subbies are rightfully owed.

“As a result of consultation, we are proposing a simple fix to protect subcontractors working on big commercial projects as the major problems with collapses tend to exist within the commercial sector. This policy will not apply to the residential sector.

“The proposal will require developers to set up an independent trust to receive progress payments that would normally go directly to the lead contractor. In the event of a lead contractor’s collapse the money in that trust will be ringfenced from receivers to ensure subbies get paid.

“The trust will be a secure holding station and payments will pass through it. It will not in any way interfere with contractual obligations and will not interfere with payment timing.

“In practice this means money will flow from the developer through the trust to be paid out to subcontractors and the lead contractor under whatever contractual arrangements are negotiated by them. In the event of a lead contractor’s collapse monies held within the trust will be ringfenced from the receiver and be paid out to subcontractors for work they have done.

“These arrangements are now in place in New South Wales at minimal cost to the industry. We will work with business to fine-tune any regulations as needed.

“If the developer does not want to establish a trust they can utilise the facilities of the Public Trust Office rather than setting up their own,” says Clayton Cosgrove.

The SOP is available here.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On First Time Voting (Centre Right)

For the next two days, I’m turning my column over to two guest columnists who are first time voters. I’ve asked them to explain why they were voting, for whom and what role they thought their parental upbringing had played in shaping their political beliefs ; and at the end, to choose a piece of music.

One guest columnist will be from the centre right, one from the centre left. Today’s column is from the centre right – by James Penn:

As someone who likes to consider himself, in admittedly vainglorious fashion, a considered and rational actor, the act of voting for the first time is a somewhat confusing one. I know that my vote has a close to zero chance of actually influencing the outcome of Parliament. The chance I will cast the marginal vote that adds to National or Act’s number of seats in Parliament is miniscule. The chance, even if I did, that doing so would affect the government makes voting on a strictly practical level even more spurious as a worthwhile exercise.

But somehow I have spent a large amount of time (perhaps detrimentally so, depending on the outcome of my upcoming exams) agonising over how to cast my first vote in a national election. More>>

 

Parliament Today:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Gordon Campbell:
On National’s Phantom Tax Cut Package

Hmmm. So National’s tax cuts package turns out to be one of those television advertisements that screams a headline promise – perfect skin! a youth tonic that works! – while in very small print there’s an out clause: special conditions may apply. More>>

ALSO:

Water: New Marine Reserves On West Coast Opened

Five new marine reserves were officially opened by Conservation Minister Dr Nick Smith on the West Coast of the South Island to protect a range of marine ecosystems for conservation, science and recreation. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news