Page 2770 - Week 10 - Tuesday, 14 August 1990
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project. It employs local consultants and contractors and plays a vital role in the ACT construction industry and the local economy as a whole. I think the economy here in the ACT would definitely be on a recipe for disaster if we did not have the construction industry here to contribute to the economy and provide the jobs and services that are required. The group also provides an in-house source of advice to the Government, and to some degree to local community groups considering a construction project.
If Mr Connolly would like me to arrange a briefing so that he can learn to understand how the contract system is organised here in the ACT and how the public works contracting is managed, most efficiently and most properly, I would be only too pleased to arrange a briefing to illuminate the matters for him.
The matter that Mr Connolly most referred to, of course, is that concerning a construction firm by the name of R and G Shelley Pty Limited. I think it behoves me to give some details of what Shelleys are, and what they have been involved with, and exactly what has been the problem in relation to that firm. It should also be pointed out that R and G Shelley Pty Limited are only one of a number of companies in financial difficulties throughout Australia because of their involvement in development projects. The question might well be asked: why are those companies in difficulty? We all know why. It is because of the reckless financial policies being adopted by the Federal Government, the mini recession that is being formed and the high interest rates that are being slugged upon small businesses and large businesses here in Australia. Of course, they are being slugged not only on businesses, but on households as well. The concept is that unless people are bleeding the economy is not doing well. We do not support that at all.
Nevertheless, in relation to Shelleys, R and G Shelley Pty Limited was incorporated in the ACT in 1981. The company founders were two folk by the name of Robert and Graham Shelley, both of whom were and are very experienced in many facets of the local construction industry. The company had a turnover from construction activities in 1981-82 of a mere $300,000. In 1988-89 that turnover from construction activities had increased to $24m.
At the time of their provisional liquidation there were 46 government contracts current. I think it is worth pointing out that the majority of those contracts that were current were entered into prior to this Alliance Government being in place. Many of them had been let by the previous Government. Those entered into by this Government only had a value of around $3m. So, to point the finger at this Government and say that it is our contracting management that is at fault is clearly ludicrous. It is a large problem and we should adopt a bipartisan approach and see if we can somehow get the best of a bad job.
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