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In late February, news broke that Watersun Homes had slipped into voluntary administration, signalling it may sail off into the sunset.

In the ensuing weeks, unsettling elements surfaced: the deafening silence of the directors, the extreme secrecy surrounding the downfall and most disturbingly, the disregard for the many thousands of lives shattered.

When the first limited information filtered out, it sent shock waves across Victoria. Watersun had building contracts with home owners in Melbourne and all across the state. Initially, it was suggested that Watersun’s administration had left 300 home owners in the lurch, $10 million owed to creditors and 100 employees out of work. But as is standard with such collapses, the original statistics were understated and ‘alternative facts’ camouflaged the magnitude of this construction fiasco.

After the announcement, the directors went into hiding. They locked the Southbank office doors, scratched the Watersun sign from the building’s façade, immediately shut down the website and sank into silence. As we later learned, many owners and creditors had been subjected to this subterfuge for months, their attempts to communicate thwarted, their calls unanswered and messages ignored.

The directors refused to attend the first creditors’ meeting (mandated under Corporations Act 2001) in March. Instead, claiming fears for their safety, they prepared a short statement to be read out. Blaming cost blowouts and expansion into regional areas, the suggestion was that they had exhausted all avenues prior to appointing administrators. Their postscript: they “regretted the impact on employers, home owners and creditors.” Little consolation for the casualties!

There was no any indication furnished as to the company’s future direction. This, combined with the directors remaining hushed and holed up, predictably fuelled further questioning: “What is buried beneath the cover of silence and secrecy?”

Meeting maintains mystery

The first creditors’ meeting provided no word on the disposal of the company’s assets in order to meet outstanding debts. Also the decision on whether Watersun Homes would continue trading or go into liquidation was deferred until the next creditors’ meeting in April. Watersun’s indecision indeed was a decision – to be woolly and wavering – with all caught up in this catastrophe left in the dark.

At the first meeting, only two resolutions were on the agenda. The first was whether to confirm Rodgers Reidy as the administrators. Evidently, this went unchallenged. As to the second, whether a committee was appointed to assist with the administration, this is unknown because minutes of the meeting were not released.

The only piece of information announced was that no figure had been calculated as to the amount Watersun owes to home owners. Consequently, how many millions of dollars of damage has been inflicted upon these unsuspecting consumers is unspecified.

Thus, this meeting brought no clarity. It did nothing to allay the anxieties of the blameless home owners and sub-contractors owed millions of dollars. Constrained under the shadowy skies of insecurity and living in limbo, for those crushed much mystery remains. The question: “Why the prolonging ploy?”

Skyrocketing disaster

Although the first creditors’ meeting was scant on detail, new statistics divulged the soaring scale of the disaster. It was revealed that Watersun Homes had 420 building projects on the books, debts of $20 million to around 900 creditors (sub-contractors owed $16 million), 90 employees owed $1 million, plus a debt to the Australian Taxation Office of $484,000. Of interest would be how many of the 420 building contracts were signed when Watersun was tiptoeing into administration? It should be easy to determine, but will it be?

Most telling, the debt was double the original amount declared, not counting what is owed to home owners!

In total 1,400-plus Victorian home owners, sub-contractors and Watersun staff were directly affected. But add in the partners and their families – based on an average family of five, it’s easy to come up with an estimate here of 7,000-plus at the outset. Also, if we consider sub-contractors and other creditors, along with their employees and their families, the number hammered escalates dramatically. Think 900 creditor businesses times five employees which equals 4,500. Just imagine the sum of all the victims and their families. The upshot is unmitigated devastation.

Then we have the dynamic force of the domino principle across all the businesses, employees and families dependent on the income and spending of those burned by the Watersun crash – 11,500 persons times spending on an average of $80,000 a year. Across many thousands of businesses (and their employees), the flow on is incalculable.

The pyramidal structure combined with the interdependence of businesses means incidentally losses spill over to thousands otherwise not touched. Imagine the compounding effect across the interlinked communities of so many businesses and families, their livelihoods and lives intertwined. Collectively, they are looking down the barrel of colossal financial and emotional hardship – threatened by massive monetary losses through no fault of their own. The aggregate is impossible to gauge, but factoring the total fallout multiplies to mega millions of dollars. On any scale, it’s a skyrocketing disaster.

Was the writing on the wall?

ASIC did not receive notice to deregister Watersun Homes until February 2017. However, for the ‘regulator’ the classic signals were flagged. Let’s examine the facts:

  • In announcing its administration, Watersun cited “insufficient funds” – a clear sign of a company in distress.
  • It is now known that the company owes $20 million. That much debt is a definite danger sign.
  • When the company’s directors, Gary Caulfield and Tanya Lewis (of parent company of Watersun Homes, WSH Group) signed off on the company’s 2014 accounts in 2016, they advised ASIC of a net loss of $674,326 on revenues of almost $66.9 million.
  • Stressing “significant uncertainty” as to whether it could continue as a going concern, it admitted that during the financial year and after “the company was in breach of the financial covenants governing financial liabilities.” Whilst demonstrating compliance with directors’ duties, this an alert to Watersun’s viability.
  • The company changed its name from Watersun Homes to an unknown name in November 2016 – a cautionary notification of possible impending insolvency.
  • There was a change of directors, with multimillionaire developer Benni Aroni, a long-term director and co-founder of WSH Group Pty Ltd (company behind Watersun Homes) resigning his responsibilities over two years.

As events unfolded, markers designating Watersun’s demise were undoubtedly on the wall!

Sirens sounding

Although an incomplete narrative, from our present perspective it’s possible to pick up on some of the sounds of silence. Alarm bells were ringing, though muted to barely measurable. These sounds were undetectable to most about to be whacked by the turbulent waves in the wake of Watersun’s downfall, not ‘discoverable’ by those directly damaged, not discernible to others.

If we review Robert Gottliebsen’s insider revelations, they shed light on how long ago the sun began to set on Watersun. As quoted in The Australian, he believes, with the benefit of hindsight that from 2014 it “was in bad shape and had no hope”, the warning signs to subcontractors “up in neon lights!”

The sinister signs detected by Gottliebsen were real, but only ‘for all to see’ retrospectively.

Home owner hardships

As noted in ABC online, Sarah Sims from Geelong heard rumours and sensed something was wrong. Having waited 16 months after signing her contract with Watersun, and no soil turned to begin her family’s ‘dream home’, she became so distraught she tried to cancel the deal. When threatened with being taken to court, she was so intimidated she abandoned any idea of legal action. Meanwhile, Sarah’s block of land remains visibly vacant.

Alison from Bendigo found out Watersun had entered into administration through a Facebook group. She and her partner signed the contract for their new home in April 2015 with the assurance they’d be moving in by October 2016. But their house remains unfinished.

Subcontractor suffering

Geelong Radio heard of several sub-contractors owed hundreds of thousands of dollars by Watersun, all holding little hope of ever being paid. Worse, some fear the collapse could leave their own businesses in tatters.

“I know of one subbie who employs five blokes but his supplier won’t hand over any more materials because he owes them money,” a contractor was quoted as saying. “Watersun hasn’t paid him so he can’t pay his bills, and with his supplies cut off he can’t take on more work to cover his losses.”

Another local tradie said that for years he had suspected all was not well with the company. He said Watersun staff deflected questions about its financial state and sometimes gave misleading answers. They handed over a portion of what was owed, promised the rest in a few weeks but “of course, that money would never appear!”

According to The Bendigo Advertiser, Nathan Tresize of Superior Concrete and Construction knew of uncompleted Watersun houses throughout Bendigo, feeling “for the families that had invested their hopes, dreams and savings in those properties.”

Working for Watersun for about two years and owed $17,000 since September 2016, Tresize was unwavering, saying “They have always been slow payers.” Justifiably upset, he said this would “hurt us, as a small family business, considerably.”

After administration

There were other ominous indicators foreshadowing Watersun’s failure. Only after the event did the cloudy ambiguity clear to reveal the depressing reality. Sadly, this came too late for those cast as casualties who, deprived of information, were denied any opportunity to mitigate their losses.

On March 2, Geelong media exposed disquieting reports that Watersun had advertised for staff one day before it went into liquidation. More cruelly, there were reports of Watersun accepting deposits on new homes less than 24 hours before announcing its administration.

Another issue relates to the administrators. They did not, as is normally the case, release the Creditors’ List five days prior to the first creditors’ meeting, which raises another dubious matter. Watersun appointed the administrators, and given that their client is Watersun, they may not be objective in taking account of the interests of home owners and creditors. This especially disconcerting given the enormity of outstanding debt.

Lastly, we have learned that the WSH Group have other entities trading profitably in commercial construction. One has to ask: “Why did these companies not support the domestic building company through difficult times?”

Watersun sealed watertight

This story shines a light on just how Watersun was sealed watertight. The directors were ‘waterproofed’ – Watersun’s super weapon synchronizing silence and secrecy. Not a scrap of official information seeped out to empower the besieged to dodge the damage of the hidden tidal wave about to destroy their lives.

Watersun has managed to circumvent critical scrutiny, primarily protected by government’s appalling legislation and almost nil oversight. For the victims, their fate was to be dumped up the proverbial creek, left in a leaky boat – and without a paddle. Their lives now shattered, they are forced to live precariously in the shadows. As always, business protected and the victims the ‘protected not.’

 
  • Well done Anne for again using your investigative skills in exposing yet another scandal this time into
    Watersun Homes.
    As a Broadcaster for 3mdr I can assure your readers, of your incisive long term interest for consumers having interviewed you on other topics relating to building consumer nightmares over the past five years.
    Questions I would ask:
    – which State and Federal Ministers, Administrative Department heads are responsible for not seeing the warning signs.
    – what legislation might cover this situation or if not to introduce covering legislation.

    Judy-Ann Steed
    3mdr 97.1fm

  • Once again, so many who saw the warning signs and were suspicious did nothing. The many so called protection systems and bodies our tax dollars pay for, failed us again! The multiple damning Ombudsman's reports nothing more than futile and expensive exercises swept under the carpet.
    Most of these families looking for the basic security of their own home, worked hard, saved what was left after paying taxes and now will struggle to recover financial and emotional security for their families.
    Whilst I understand that there are businesses and trades who will feel the impact as well, unlike the trusting homeowners, these suppliers and trades heard alarm bells that the homeowners could not. Alerted to the imminent danger, they had a moral duty of care to alert authorities, not only to save their own skins. We had the same issues with our revolting building experience where after the fact, trades and suppliers said they had not been paid and realised 'the project was too big' for our builder, but they said and did nothing allowing both the financial and material damage to escalate. You sleep with dogs, you get fleas!
    And of course the directors and partners will move on virtually untouched, able to re-emerge under glowing new banners and 'window dressing directors' to do more damage! Sick and immoral cycle that nobody seems to be accountable for!

    • Seems to me BJ you are a previous victim of an unscrupulous builder like I am. It is sad this seems to re-occur time and time again. Like you I am amazed that the "Protection Systems" that Tax Dollars are paying for, still are absolutely useless.

  • Well done Anne – this " collapse" has all the signs of a pre-packaged liquidation. There should be an investigation for a possible illegal phoenix here. The construction industry is plagued by them. It should be made known how many home builders lost deposits and how much. For inactivity on that front for so long needs an investigation for fraud. That means the police. ASIC and the liquidator operate under the federal law and then there is state law.
    What should be occurring is the creditors should appoint a spokesperson and demand the Victorian government refer the matter to police for investigation for fraud — the South Australian Government should do the same with former Senator Bob Days company. These liquidations are rarely the result of market forces – they are fraud – but our representatives are asleep at the wheel.
    It is not a good sign that creditors did not challenge the director appointed liquidator – creditors should be aware that recent changes to the Act allows the committee to replace the liquidator if he is not conducting the investigations they want – they should inform him of those and make sure he complies – or get rid of him. Needs a police investigation – appalling – Write that book Anne.

  • Criminally financially & personally devastating for all the families invested in Watersun, & all the sub contractors & creditors owed. Watersun's commercial company arms should pay! The company owners jailed! And urgent change to oversight & regulation legislation to Protect consumers be Enacted! And Building Warranty Insurance not be further devastatingly argued and years long to pay out, if they will at all.? Disgusting! And where All the So-called Oversight & Regulation Well paid out by all Our Taxes to nip this type of misbehavior in the bud & Prevent such massive broadscale damage.??? Shame, Shame, Shame! Liberal & Labor Parties been calling on but denying urgent overhaul & reform the Same. SHAME ON YOU!!!

  • This is obviously a disastrous situation for all involved.

    Personal safety reasons are a pathetic excuse for failing to attend a creditors meeting. Seriously, what did the directors think was going to happen? They just don't want to face up to their customers and creditors, that's all.

  • It's evident what you need in Victoria. Packer didn't seem to have much trouble getting his huge billion dollar Crown building approved with all of the normal approval processes set aside. Political donation rules. The Victorian government smells just like the regulator – VBA. Get rid of both .

  • Should the VMIA monopoly DBI insurer and its agent QBE meet all uninsured consumer losses incurred due to the tragic failure to protect using prudent commercial underwriting techniques?

  • We are witnessing serious corporate corruption in the Australian construction industry . Everybody gets to feed on the bones of innocent people . Consumers / tax payers / small business are getting done like a dinner . If you haven't been done you are only waiting.
    If you can't donate then you can't negotiate.

    450 homes affected plus consumers plus small business – they got the lot. Nobody seems to care . The public just don't matter. Legislation is influenced by these corporate criminals – nothing in the pubic interest . Changes to the insolvency laws pending will make this scenario only worse.

  • Simple – buy an established house and dont give the Builder any work, then he will go broke and will know what it is like to have no home and no money like the people that suffer as homebuilders under the current Building Regulations (sic)system.

  • When you read the things that Anne Paten writes about how Aust. People get done over by the hundreds you bleed for them. I personally am ashamed to be an Australian as I have no rights in this country, three levels of Govt and all they say is I have done nothing wrong and thats the end of the matter. The fool PM. Turnbull bragged the other day about law returned to building sites if you are getting a house built it is a building site no pollie will do anything as liberal / labour are only concerned about the building comp.You can bet this company of bosses wont lose out of there pockets.. R. Jones..

  • Well done Anne again with your incisiveness.

    A necessary and fairly simple reform could be the compulsory annual auditing of medium and large firm builders in particular (by ASIC and by the warranty insurers in the residential industry to avoid such disastrous bankruptcies.

    Another signal is the rapid increase in deposits taken and contracts signed by desperate builders. AUDITING NEEDED NOW.

  • Well done Anne – very descriptively covered. After being a victim of the WELCOME HOMES demise back in 2012 I thought the Victoria Building Commission and State Government would have instituted laws and regulations to stop these "free wheeling construction Operators" by now. It seems not. And I suppose the poor victims of these criminals will also be shafted by the VMIA like I and my fellow victims were. It is sad – very sad and I have empathy for these poor souls who now have nothing but financial hardship and despair ahead whilst looking for justice that it's doubtful they'll ever receive. Quite plainly the domestic building industry in Victoria stinks. Very few genuine and honest Operators out there. However, my project in Craigieburne had a somewhat happy outcome by my finding a very ethical and honest set of Builders who completed my project. If anybody would like their name – feel free to contact me through Anne. I will be glad to assist in any way I can.

  • Another disgraceful building/construction industry disaster that is destroying family lives.
    I am suggesting to my children that when they are ready to pursue the great Australian dream of home ownership that they buy old houses that have been up for a number of years and that have not fallen down in that time. Perhaps that way they might have some hope of achieving their dreams without having their lives destroyed by unethical building companies as well as by the inaction of government departments that are supposed to be in charge of monitoring building and construction practice. I feel very sorry for those people who have lost their money, have no house to live in, also those sub contractors left in the lurch and all those people who have no idea who to turn to in this building debacle.

  • I am one of the affected homeowners, and I am also on the creditors committee. The Australian Tax Office new for 2 years that Watersun was unable to meet its taxation obligation, but extended terms time and time again, Watersun did not lodge company returns since 2014, no body did anything. The NAB new the company situation and did nothing. But what is most disturbing of all is that several companies listed as creditors are owned by the directors, that some creditors that had a close relationship with Gary Caulfield are now engaging in blackmail and extortion to homeowners to get outstanding accounts paid and refuse to release certificates and reports to home owners that are required to complete their homes, these are companies that had account terms with Watersun that had been breached many times going back 12 months or more. These companies knew what was going on and did nothing but now want to throw the home owners that are left on their own to sort out the mess, under the bus again. Shame on them and neither consumer affairs or the VBA wants to help. The money for these services, Building Surveyors and Consulting Engineers, was paid to Watersun by the homewoners, and we can not get it back. A Building Surveyor is protected by the present laws, the homeowner is not. There is so much more that should come to the publics attention, how another major home builder was and is involved on an ongoing basis, and yes, it is my opinion the company was set up to go into liquidation. The hush up is deafening, and Mr Andrews never made one comment. What will this mean to the industry ? The cost to buy land and built a home will now go up and absorb the $20,000 first homer buyers grant very quickly. The trades and supply companies have only one way to recover from this, and that is to charge more. But most of all, we as homeowners are afraid and intimidated to speak up for fear of further reprisals

    • This is just another case of business as usual for the vested interest. The bankers, builders, lawyers, accountants and their protectors the politicians who do not care about Australian families. Whenever the ones who do have the power to do the right thing by the community and the families who voted from them they run away and hide. I presume it is because the money men have contributed to the reelection funds of both major parties.

  • B McKenzie, thank you for your courage in speaking up. You make many astute observations. First, about how many businesses do as they please, with no regard for any 'laws', this only because they are supported by Government and totally protected by its agencies; these the supposed ‘regulators supposedly to oversee ‘building regulation’ and ‘consumer protection’. Otherwise known as the big CON! These agencies, whose names change each time their appalling conduct is exposed in the Auditor-General’s or Vic Ombudsman’s Reports, simply continue ‘business as usual’. This regardless of how scathing the Reports, or whether it be the VBA or CAV, or ASIC, ACCC, etc. You highlight Building Surveyors, many of whom are hired guns engaged to approve non-compliant works. The so-called 'builders’ put it so pithily as: "the surveyor's in my pocket". All protected by the Business-VBA/CAV/VMIA partnerships. As for Mr Andrews, Wynne or any of the pollies ‘commenting’, their silence is golden – with the major parties in bed with business (for the big bucks) and for decades. As for ASIC, ACCC or APRA – same.

    In relation to the pugnacious policy of intimidation and bullying, better known as the ‘sledgehammer strategy’, this was schemed to instil fear into owners. It has become the standard terror tactic, full on and from every quarter – acting to enable the exploitation and extortion. Tried and true, producing the desired result most of the time! It begins at the beginning with the 'builder' (after sales pitch and 'con-tract' are signed), who often does not 'build', commonly followed on by the surveyor who does not 'survey', and some engineers who are supposedly 'geotech or structural experts’ – they happy to oblige by arranging ‘tests’, ‘computations’ and ‘reports’ that are false. The motive? Personal profiteering, the rewards big fat fees! Then coming on board the ‘con-sultants’ (the majority with no quals or registration in anything 'building'), who are prepared to write false reports (Trumps’ alternative facts), they too induced by the big bucks provided as for all in the business buddy team.

    Thus, when a WSH disaster hits (around one in every two cases), the owners are sitting ducks. Then along comes the facilitators of stage two. As the owners seek ‘help’ from the VBA, CAV, and the other agencies, they get the full force of 'official help' to exacerbate the fiasco – via official bullying into the hands of the ‘dispute industry’ – and thus the owners’ distress escalates as the ‘dispute’ intensifies to a mega nightmare. You rightly highlight the 'hush up' – it is deafening! The hush up critical to ensure the reality is hidden. The enormity of financial loss, of divorce and shattered families, of lost health and ruined lives – not to mention the suicides – must be covered up. Or else the public would know the truth about 'building'. About the industry’s, rampant lawlessness. About the abuse of owners. And about the officials’ blatant endorsement of fraud. It would warn sensible people off going down the 'building' path. Sadly, bullying is building, through which the bullied are ‘legally robbed’ of around $40 Billion annually –and for too many decent, hard-working Australians who have done no wrong they are robbed of their lives.

  • What a disgrace. Thank you Anne for uncovering (once again) yet another scandal. Unfortunately knowing to some degree how the system works I can't see these poor homeowners and small business owners who have been left in the lurch getting any sort of recompense.

  • Hi Anne,

    You have done a power of work exposing the inadequacies of the building industry. I come from the builder perspective, but with a clear understanding of the system and how poorly protected the consumer is from poor building outcomes. The last resort warranty system that underpins the residential industry in Victoria is fundamentally flawed, has consistantly been shown to be such yet subsequent governments have failed to rectify it and continue to preside over a system that has, for over 20 years now, been a failed model.

    I was an active advocate during the fall-out of the HIH insurance collapse that seriously impacted many builders. Instead of fixing the problem, the government of the day made it worse, in effect working for the remaining big insurer and HIA to write risk out of warranty insurance to the direct disadvantage of the consumer.

    Reform, as outlined by the 2012 Ombudsman report has partially occurred, but hasnt tackled the main issues of incompetency, poor quality standards or poor financial standards. All that has happened is that the VBA is being more prescriptive in registration of practitioners but not in pro-active risk-mitigation systems that spot problems and prescribe remedies before they become big issues.

    In the good old days of the Housing Guarantee Fund builders were monitored, inspections were independent and mandated at every stage and the consumer was actually protected regardless of whether a builder was solvent, dead or disappeared. Good old Kennet, Wade and Gude deregulated and privatised our regulatory system with little understanding of the consequences and ever since both our political parties and their bureaucrats have failed to respond in any significant way to this ongoing sore.

    It is interesting to note that while a Liberal Government introduced this puppy of a regulatory system, Labor governments have been at the helm for 15 of the last 20 years and have done little to fix it. Funny that this system seems to be fine from the perspective of our bigger builders and their associations.

  • The home owners by law should be listed as secure creditors, at the very least they should be placed on the list as prefered creditors before the likes of the ATO and others.

  • Anne thank you for your insights and support in the process of build completion post Watersun administration.
    I have been on an exponential learning curve and I now discourage all of my friends from building a new home and to learn from my experience.
    In a poorly regulated industry, you provide transperancey. Thank you for your work in consumer advocacy.

  • It is clear Anne that you have done your research and equally that the fallout for thousands of Victorians will be devastating. In some cases many people and their families will be permanently damaged. Just how many will most likely remain unknown and as time passes we will hear little more on this story. That seems to be how the big story of all who suffer through these so-called insolvencies is kept under wraps. Well done on your efforts. What can we do as individuals and a community to get change?

  • Anne you have pointed out just how many people are and will be suffering as the victims in this one case of Watersun. I am so very sorry for all the thousands of owners, subcontractors and others who will have their lives ruined. My heart goes out to them. Why is it not possible for owners to get a house and subcontractors to be paid? We are told constantly that there is a justice system but definitely there is not.

  • Simon, thank you for your comment. You speak with authority as one who knows from being in the industry and seen the changes and harm over many decades experience. Yes it started with Kennett, but Labor has been the biggest supporter of the big boys' club, ably aided by the bureaucrats. Sadly neither party has any interest in consumer protection – of which we have nil! The recent legislative changes have in fact made it much worse for consumers – who thought that it was possible? Certainly I did not. It's seems it is not enough to defraud consumers 'legally' and here we are talking $40 Billion in financial loss to building consumers annually, this creating the greatest man-made disaster in our history. It is a human tragedy on a massive scale. Now here in Vic under the new 'old' (now much worse system), the whole 'dispute industry' will be hidden from public view as consumers are stitched up behind closed doors. The lid is firmly locked, as owners go like the lambs to the slaughter – for some this will be for the second and sometimes third/fourth time as part of trying to have one decent, safe building erected. As you say Simon, all designed to line the big boys' pockets with money effectively stolen from the 99% of ordinary Australians who fund the industry.

  • Mr Gary Caulfield you have demolished our lives you have shattered lives hardworking australians that have families how dare you

  • Thank you Ann For again using your investigative skills in exposing yet another scandal this time into
    Watersun Homes. He shattered homes hard working Australian"s i cannot believe what Gary Caulfield has done it is heart breaking complete heart breaking

  • I am a builder. As a builder we take on the most risk of any sole individual. We provide a service that is desperately needed and sit in the middle of the consumer and have absolutely no protection. We are indemnified for years with regards to minor defects in a system that is specifically designed to destroy us if we decide to retire from the world.
    The whole building system is reliant on this sole individual as the builder.

    The whole system needs an overhaul otherwise on the only builders that will be out there will be the big ones undercutting each other driving overall quality and costs that trades can charge. essentially creating a monopoly.

    Yes this is a horrible event that has occurred but if you actually understand what is involved to be a builder the maybe you will begin to understand why this is not the first builder to go down nor will it be the last. The industry bodies that are supposed to be there to support this industry just play lip service, both the MBAV and HIA are full of budding politicians that are on using each body as stepping stones to try and get a foot in the door to government. Every other body is there to prosecute the builder not assist.

    If everyone wants to point fingers there needs to be a big one too our government for designing a system that relies on (usually) between 1-4 individuals to cover debts when and event like this occurs when building homes as builder will only see the builder walk away with minor profits to compete in this environment thus making it very unlikely that they will have assets to cover the debt should an event like this occur. Building companies are inherently a asset light company with usually the only thing with anything in this sort of collapse the Intellectual Property.

    This is a horrible event and I feel for all those involved but I feel more needs to be done to support this industry rather than purely just prosecute otherwise we are going to go further into a housing shortage as the players to do this work diminish further and further.

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