MEA lobbying triggers inquiry

Master Electricians Australia (MEA) has welcomed the announcement of an inquiry into the school building scheme which has left small contracting businesses millions of dollars out of pocket and driven many to the brink of bankruptcy.

The announcement follows MEA’s pursuit of the Federal Government’s Building the Education Revolution (BER) stimulus program in the media, and meetings between MEA and West Australian State Government representatives have triggered the investigation.

MEA WA State Manager Anthony Mancini said this was a win for WA electrical contractors and the first step in the right direction toward protecting small businesses and their rights.

“As a result of MEA’s lobbying, the WA State Government will now conduct an investigation into construction contracts awarded and administered by the Building Management and Works (BMW) division of the State Department of Finance in the period between October 2008 and October 2012,” Mancini said.

“The inquiry will be headed by the Small Business Commissioner separate from the department running the scheme and will look into the extent of alleged non-payment of subcontractors and investigate BMW processes and practices.”

Mancini said the WA BMW office, which runs the BER scheme, is looking to grasp the extent of the problems the BER scheme has created.

“MEA has already seen a number of members who have lost more than $200,000 so far, perhaps more. Industry sources tell us that the total amount still owed to subcontractors for BER projects is around the $76 million mark,” he said.

Mancini said all subcontractors who have been victim to the BER scheme should come forward and enter themselves into the investigation.

“Master Electricians Australia would like to hear from any electrical contractors out of pocket because of this scheme,” Mancini said.

“We strongly encourage all subcontractors who have not been paid for work administered by the BMW or have entered into administration or become insolvent to register their details on the Small Business Development Corporation website,” Mancini said.

The investigation is expected to run for seven weeks, with representations and advice provided to the Minister for Small Business on or before 21 December 2012.

Subcontractors can register their details at www.smallbusiness.wa.gov.au.