Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

In Gilmore the construction industry is the catalyst for our marginal employment increase. We cheer when projects are announced, particularly when government-initiated, creating jobs, income and growth. The government pays very large contractors, they pay the next level contractor and so on until we get to the subcontractors. A local subcontractor could be a family man or woman driving a truck for a living and perhaps employing a couple of others.

But last week we had the devastating repeat of all that has happened before: a mid-level company has gone well beyond the 45 days from end-of-month payment. The roll down of payment did not reach our local subbies; the debts are unpaid. Instead there is an announcement: the company is under administration and, 'sorry for any inconvenience'.

This has happened before. Why don't we hear more about this appalling practice? Often there is an inference, or a 'read between the lines', that if the subbie speaks up they will not get work again. This is immoral—it is economic blackmail. One local subcontractor has said, 'enough is enough and others are affected as well'.

This payment default has occurred on the watch of all governments, but rarely have we had a subbie who is prepared to speak out. We are their voice in government, and each of us must now take up the challenge and work on a resolution to this dreadful process.

In a regional area, such losses affect more than the contractor and his family. It is the shops, suppliers, services—the whole community. We must stop this happening again. If there has been wrongdoing, that has to be addressed with significant consequences, establishing a prevention mechanism for nonpayment to our hardworking subcontractors. (Time expired)