WA subcontractors carry the can

Master Electricians Australia (MEA) has called on the federal and state governments to take responsibility for the flawed school building scheme which has left small contracting businesses millions of dollars out of pocket and driven many to the brink of bankruptcy.

MEA WA state manager Tony Mancini said large numbers of WA subcontractors were yet to be paid for work completed under the federal government’s Building the Education Revolution (BER) stimulus program, which was implemented in 2008.

He said supposed state and federal Government safeguards had failed to protect subbies who have now found themselves left high and dry by builders who have gone bankrupt.

Assurances by the West Australian Building, Management and Work (BMW) office that the BER required signed statutory declarations showing subcontractors had been paid before they received their cheques had fallen flat.

“The BMW office has withheld funds from builders fearing that work would not be completed and this in turn has led to subcontractors financially copping the brunt of the problems,” Mancini said.

“In some cases, subbies have been left with accounts of over $200,000 each due to builders having gone into liquidation. Industry sources tell us that the total amount still owed to subcontractors for BER projects runs to many millions.

“This is having a crippling impact on small business in WA, who risk losing lose their life’s work and possibly even their homes as a result.”

Despite subcontractors having requested their rightful federal BER payments from the BMW to honour legitimate invoices, the office has taken no action on the issue.

Mancini said both Prime Minister Julia Gillard and WA Premier Colin Barnett needed to take responsibility now for their role in the collapse of numerous small businesses.

“The main issue here is that these subbies are not to blame for this government’s flawed schemes but are the ones who will carry the financial burden,” Mancini said.

“An official investigation into fraudulently signed statutory declarations by builders promising payments to subbies needs to start immediately. This is the time for both the state and federal governments to step up and accept responsibility for the situation before it is too late for the future of contracting businesses not only in WA but across the nation.”