Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Govt Bailout for Perle Subbies Is Not Forthcoming

Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Govt Bailout for Perle Subbies Is Not Forthcoming

Article excerpt

A ONE million dollar taxpayer-funded bailout will help out-of-pocket building sub-contractors in Sydney but Coffs Harbour's affected tradies hold faint hopes of a government rescue package.

Neither the State Government nor Coalition could yesterday commit to covering Perle Construction's debts of $1.7 million owed to the local building industry, not to mention its $10 million debts statewide.

Yet NSW Education Minister Verity Firth has announced a rescue plan to assist 28 sub-contractors owed up to $5-million following the collapse of Maintek Projects Pty Ltd.

Maintek Projects and Perle Constructions went to the wall while completing Keneally and Gillard Government C[pounds sterling]stimulus packageC[yen] projects.

Perle was undertaking Housing NSW projects, while Maintek struck difficulty completing 10 Building Education Revolution (BER) in Sydney's northern suburbs.

In all, three companies have collapsed this year working under primary government contractor Bovis Lend Lease.

The construction giant, however, has reached a deal with the Government to pay up to $1.4 million it was holding in progress payments for Maintek to the sub-contractors.

Housing Minister Frank Terenzini's position yesterday was that Perle's receivers can not be paid out due to a major difference between Education and Housing projects which is little comfort to the many local families struggling to pay their bills.

Mr Terenzini said Housing construction projects are directly engaged on C[pounds sterling]fixed priceC[yen] contracts, meaning the builder gets paid for the work done, as it gets done Co and the builder pays the sub-contractors.

C[pounds sterling]The difference between Education and Housing is that Education had not yet paid the bills it owed when Maintek went into administration so it has that money available,C[yen] Mr Terenzini said. …

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