Sparks continue to fly between the insurance and building industries, with Vero backing away from its claim last week that the Tasmanian review of home warranty insurance is the result of a 10-year review rather than because of issues with the cover in the state.

Builders’ Collective National President Phil Dwyer told Sunrise Exchange News the review was called last year by Tasmanian Attorney-General Judy Jackson in response to concerns about the effectiveness of the insurance schemes. He says the Tasmanian legislation was only enacted in 2003, anyway.

The Tasmanian Government is backing up Mr Dwyer’s claims that Vero got it wrong. In a letter to Mr Dwyer, Tasmanian Consumer Affairs Director Roy Ormerod said the 10-year rule “relates to subordinate legislation (regulations)”.

“We completed the review of the housing indemnity regulations last year,” he wrote. “The current review has nothing to do with the 10-year rule.”

Mr Dwyer had a lengthy meeting with Mr Ormerod in Hobart a fortnight ago to discuss the insurance system.

This week a Vero spokesman told Sunrise Exchange News when it initially responded to queries about the review, it “inadvertently overlaid the regulations with the legislation in question”.

“We understand the Minister’s [Mr Ormerod’s] letter related to an existing commitment to review the Act. We have also been advised that the timing of the review was the reaction to the implementation on 1 July 2004 of the Building Act 2000 that required all builders to be licensed,” she said.

It is understood only one claim has come through since the Tasmanian legislation was introduced, and that remains unsettled.