Questions without notice and ministers statements
Probuild
Mr DAVIS (Southern Metropolitan—Leader of the Opposition) (12:00): My question is to the Minister for Small Business. I refer to the decision of the owners of Probuild, one of the country’s largest construction companies, to cease trading and enter administration. This will clearly cause a very serious impact on many projects across Victoria and importantly leave many subcontractors and tradies facing extreme uncertainty, and I ask: what steps is the government taking to ensure subcontractors and tradies are protected and are paid what they are owed?
Ms PULFORD (Western Victoria—Minister for Employment, Minister for Innovation, Medical Research and the Digital Economy, Minister for Small Business, Minister for Resources) (12:00): I thank Mr Davis for his question and his interest in the recent and very disappointing news about Probuild. To give the house some context, yesterday Probuild’s South African parent company, WBHO, announced that its Australian board had commenced an application to put the business into administration. This is a significant company. It has a 35-year history in Australia as a construction business delivering very, very significant projects. This decision impacts more than 700 direct jobs in Australia but is also expected to affect thousands of contractors, many of which will be small businesses. Obviously Probuild is not a small business, but everyone here understands how the supply chain of trades and skills works, and many of those are small businesses.
Probuild Australia is Melbourne based. It has a significant number of projects under construction around the country, and quite a number of those are in Victoria. Probuild is working closely with the administrator, which is Deloitte, on a number of plans to protect its clients, subcontractors and employees. Probuild are exploring options to raise the necessary capital to continue as a premium Australian building company. Their advice to us is that Victorian construction projects are viable and have money left to complete them, which is encouraging news in what is obviously a less than desirable situation.
There is currently no Victorian funding associated with any of the Victorian Probuild projects, but of course we have an interest in the successful delivery of those that are already underway, as I am sure the whole community does. So we are monitoring the situation closely, and of course our thoughts and our concerns are with the impacted employees and impacted small businesses and of course the construction sector more broadly. My department will continue to work with Probuild and related entities to ensure that relevant services and resources are made available to directly assist affected workers.
Mr Davis’s question I think perhaps presumed an outcome, and I think it is perhaps a bit too early to say what the outcome of this decision will be in terms of what will happen to those projects and that work, given those questions around capital raised and funding already set aside and in train for construction activity. It is in place, and the advice I have is that it is not a threat to the completion of those projects. We will work to support all those who are affected, and I am sure everyone in the house will join me in expressing our strong desire for a speedy resolution of this significant uncertainty.
Mr DAVIS (Southern Metropolitan—Leader of the Opposition) (12:03): I thank the minister for that answer, and clearly this is something that all sides of the house are deeply concerned about. As the minister outlined, the head office is in Melbourne, and there are many sites across our city and indeed the state. She mentioned the status of projects and indicated, I am pleased to hear, that projects in Victoria are financially viable, but I therefore ask: would you provide the chamber with a list of all the Probuild sites across Victoria, including if any of them have government funding? I note you said there is no government funding, so perhaps government projects rather than government funding.
Ms PULFORD (Western Victoria—Minister for Employment, Minister for Innovation, Medical Research and the Digital Economy, Minister for Small Business, Minister for Resources) (12:04): The projects include the CSL headquarters; Elizabeth North stage 2, which is part of a bigger project—I actually had the opportunity to visit this site last Monday and see these construction workers, small businesses and tradespeople at work and the speed with which that project has until now been delivered, and the quality of work was nothing short of inspirational—UNO Melbourne; Caulfield Village precinct; West Side Place; and Woodlink, East Melbourne. There are a number of sites: CSL, Parkville, as well. These are some of the businesses that are impacted.
This is something that we are very hopeful of a speedy resolution to at the earliest opportunity, because these are important projects. All construction projects in Victoria are important, and we want them all to be completed as quickly as possible so that people can get on with enjoying their beautiful new facilities.
Mr Davis: I thank the minister for that. I think she is saying that was a complete list. Is that right?
Members interjecting.
Mr Davis: It is; thank you. The minister may be able to help the opposition too in arranging a briefing on this matter. I have requested that of the Treasurer, but—
The PRESIDENT: Time for another question now.