Home warranty inquiry stalls
A NSW parliamentary inquiry into the state of home warranty insurance will be suspended until after the state’s March 24 election.
The Iemma Government’s decision to end the final parliamentary session on January 22 means the investigating committee will be unable to table its report late this month, as had been scheduled.
Greens housing spokesman Sylvia Hale says the Government is trying to avoid criticism over its handling of home warranty insurance. She expects the committee to conclude the Government should take a much more active role in protecting home-building clients.
The state’s home warranty insurance scheme – introduced after HIH collapsed – gives consumers access to support in cases of faulty workmanship. But the system applies only when a builder dies, disappears or becomes insolvent.
Ms Hale says the “scheme of last resort” has left many homeowners facing hefty legal fees as they pursue builders through the courts.
“The NSW Government has been aware of this injustice for years. Closing down the inquiry and taking no action to fix the problems shows [it] is more interested in avoiding criticism than it is in protecting consumers.”
Fair Trading Minister Diane Beamer says the Government has nothing to hide. She says previous inquiries have supported the Government’s position, and there has been no factual evidence that would suggest this inquiry would be any different.
“The Office of Fair Trading and the Director-General of the Commerce Department made substantial submissions to the inquiry (noting) that previous inquiries found that home warranty insurance should continue to be provided by the private sector,” she said.
“The work of the committee can be resumed through due process when Parliament returns after the election.”
The Iemma Government’s decision to end the final parliamentary session on January 22 means the investigating committee will be unable to table its report late this month, as had been scheduled.
Greens housing spokesman Sylvia Hale says the Government is trying to avoid criticism over its handling of home warranty insurance. She expects the committee to conclude the Government should take a much more active role in protecting home-building clients.
The state’s home warranty insurance scheme – introduced after HIH collapsed – gives consumers access to support in cases of faulty workmanship. But the system applies only when a builder dies, disappears or becomes insolvent.
Ms Hale says the “scheme of last resort” has left many homeowners facing hefty legal fees as they pursue builders through the courts.
“The NSW Government has been aware of this injustice for years. Closing down the inquiry and taking no action to fix the problems shows [it] is more interested in avoiding criticism than it is in protecting consumers.”
Fair Trading Minister Diane Beamer says the Government has nothing to hide. She says previous inquiries have supported the Government’s position, and there has been no factual evidence that would suggest this inquiry would be any different.
“The Office of Fair Trading and the Director-General of the Commerce Department made substantial submissions to the inquiry (noting) that previous inquiries found that home warranty insurance should continue to be provided by the private sector,” she said.
“The work of the committee can be resumed through due process when Parliament returns after the election.”