The New South Wales Government is urging stakeholders and those involved in the construction industry to make submissions to a discussion paper recently released as part of an inquiry into the high number of insolvencies within the sector. 

 

Forming part of the NSW Government’s Inquiry into Insolvency in the Construction Industry, the discussion paper addresses the key issues and reforms being considered under the inquiry’s terms of reference.

 

“Between 2009 and 2011, hundreds of companies in NSW collapsed owing millions of dollars, which shut down vital projects and investment,” State Minister for Finance and Services Greg Pearce said.

 

“Up to 24,000 unsecured creditors, including suppliers and sub-contractors, have been left out-of-pocket, some by millions of dollars.”

 

The terms of reference for the inquiry include how initiatives such as insurance schemes, trust arrangements or mutual funds could help secure subcontractors.

 

Mr Pearce said the discussion paper was developed following a call for submissions by those who have a direct stake in the industry and those affected by insolvency.

 

“The inquiry has heard from construction companies, subcontractors, government regulators, barristers, accountants and other financial professionals and received more than 90 submissions,” he said.

 

“The discussion paper invites further comment on matters that are at the heart of the problem and how the impact of insolvency may be reduced,” he said.

 

Submissions can be made via the website or by email to This email address is being protected from spambots. You need JavaScript enabled to view it., by fax on (02) 8236 7105, or in writing to the Chairman, Inquiry into Construction Industry Insolvency, GPO Box 15, Sydney, NSW 2001 up to 2 November 2012.

 

The discussion paper can be found here