Members statements
Home building industry
Brad BATTIN (Berwick) (09:35): I rise today as I have received an email, as many in this house would have, in relation to Porter Davis and the events that are happening around the Porter Davis builders, where many of the people who have paid deposits or are building their home are now out of pocket due to some of their mismanagement, particularly around Victorian Managed Insurance Authority. I have received one from Prasaanth, who is in the tragic circumstance where because the building costs are going up so much the insurance, even if paid and compliant, will not cover anywhere near the amount that it is going to cost to build and finish the property that he has got. Many are in this same position. This has become a circumstance because the Andrews Labor government have continued to increase the cost of builds, not just through taxes, but because their big build program is in competition against many of these private builders to try and get subbies to get people to build these houses. The insurance programs that are in place are designed around having a 20 per cent increase, but that 20 per cent increase does not quite come into account now because we have seen the prices go up so much in a short period of time. We are going to have more and more people who are going to be impacted by this, and the government needs to act. We already know the compliance for VMIA was not upheld by the Victorian Building Authority, and we have seen people fall out where they will not find the money for their deposit. I note the government has come on board with some funds for that, but I think we need to start to be considering the overall pattern and how many of these people are going to be caught out and ensure that their dream is not ended because of the Andrews Labor government’s failures.