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Building Crisis Imminent  E-mail

The indemnity/warranty Insurance upheaval will hurt us all

Click on this ABC Stateline segment that was aired on Friday evening the 18th June: http://www.abc.net.au/news/video/2010/06/18/2931328.htm

Whether we like it or not QBE cannot service the nation with this so called consumer protection product that will continue to inflict brand damage to all associated with it including the Governments now that they are underwriting it in NSW and Victoria.

The warranty manager of QBE is the person that has withdrawn twice from giving evidence to the Victorian Upper House Inquiry at last minute as he was scheduled to appear at 10am on Thursday 17th June 2010.

His conduct is showing contempt for the Parliament, the builders and consumers and removes any integrity this insurance ever held if any.

In terms of the insurers gouging it is taking place across the nation and in the WA Stateline segment the figure of $14,000 was for a $1,050,000 home, in NSW try $80,000 for a home value of $1.4Mil, and in Vic $44,000 for a home value of $950,000 in Geelong.

It is unfortunate that greed gets in the way of basic common sense as this is a product both the nations builders and consumers don’t need nor want.

Governments have a duty of care to the wider community and their almost obsessive perseverance with this product that is unable to justify its being is testing the boundaries of common decency to a point where the various Governments conduct may be exposed legally and that’s a position many builders are now asking whether it should be tested as well as the restriction of trade and the gouging.

Clearly there are many smaller builders that may not survive this upheaval.

 
Senator Milne  E-mail

Senator Christine Milne in support of the Australian domestic building industry put forward this motion to be debated in the Senate on the next sitting day

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
JOURNALS OF THE SENATE
THURSDAY, 25 FEBRUARY 2010

 Notice of motion: Senator Milne: To move on the next day of sitting—That the Senate—

      (a) notes:

 (i) the Federal Government’s aim to implement through the Council of Australian Governments a seamless economy,

 (ii) that the Australian building industry is facing a crisis because of the impending withdrawal of four insurers from the home builders warranty insurance market and the requirement by all state governments, except Tasmania, that this insurance be mandatory,

 (iii) that the remaining insurers are unlikely to be able to meet the market demand post the end of the 2009-10 financial year with the result that many builders will be forced out of business or forced to work illegally,

 iv) the failure of the New South Wales, Victorian, South Australian, and Western Australian state governments to address the ongoing performance problems with this insurance product in spite of 56 inquiries and failed interventions, and

 (v) the need for nationally consistent laws that protect consumers and builders alike; and

       (b) calls on the Government to:

               (i) immediately intervene with the states to remove the mandatory requirement for this insurance product as a short-term measure,
                   and
               (ii) facilitate the development of a national regime that gives genuine protection to consumers and the building industry.

 
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