Page 960 - Week 03 - Thursday, 14 March 1991
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I have also taken a number of other steps to further reduce the contract risk for contractors and those suppliers and subcontractors who deal with them. As my colleague Mr Jensen announced during the previous debate on this subject some six months ago, we have established a public works forum which includes representatives of unions concerned with the building industry, employer and contractor associations, representatives of suppliers and, of course, the Government. This forum has been meeting regularly and, in fact, Mr Speaker, a meeting was actually convened today.
Mr Connolly: How many times did it meet between Shelleys and Hunts?
MR DUBY: The forum has addressed a number of issues and is currently considering how best to address the issue of security of payments to subcontractors and suppliers. The question that is asked is, "How many times has that forum met?".
Ms Follett: Between the Shelleys and Hunts collapses.
MR DUBY: The simple fact, of course, is that the forum could not be established until the union mates of this crowd over here agreed to join the forum, which they never did. They were asked on three occasions. Correspondence was directed between my department and the Trades and Labour Council, asking for nominees to attend that forum, and on each occasion that request was denied. It was not denied; it was not even acknowledged. There may be something wrong with Australia Post or the fax machine at Trades House. But the fact is that they would not join. So, it is no good complaining about the party if you are not going to go along to it.
Mr Speaker, their work will be supplemented, I believe, by the micro-economic reform initiatives taken by the Federal Minister for Administrative Services. One of the major agenda items before the committee reviewing contractual matters as part of the building and construction industry reform strategy is the issue of security of payments and the assessment of contractors. As I said previously, Public Works is now utilising a clause in its contracts which allows the superintendent of the contract to demand a statutory declaration from the head contractor that all payments due have been made to subcontractors, suppliers and employees before further progress payments are made. Should this not be provided, payments may be made directly to the subcontractors.
Project management arrangements have been tightened to ensure that all payments due to contractors working for project managers who are agents of Public Works are paid through a specific project account. The Public Works accounts staff has also been increased, to ensure a more thorough audit of these accounts each month. As I mentioned earlier, the assessment of the financial viability of contractors prior to the awarding of contracts
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