A building inspector has criticised Victorian Government changes to the Local Government Act that shift the burden for removing dangerous cladding on to residents.

Owners and owners’ corporations can pay for removal via council rates under the changes, with owners paying off low-interest loans over a minimum 10 years, with those costs transferred if the property is sold.

Agreements will be between owners or corporations, lenders and local councils.

Roscon Property Services’ National GM Sahil Bhasin says the State Government is protecting the building industry by passing the costs to residents.

He says it should appeal against a Supreme Court decision that left the Victorian Building Authority unable to force builders to remove cladding.

There has been no industry consultation, which would have flagged major challenges in implementing the agreements. The agreements cannot be between owners’ corporations and local councils because the councils do not pay rates, he says.

Queensland fire engineer and Ferm Engineering CEO Steve Burton echoed these criticisms in a presentation to the Queensland Association of Fire Investigators.

Mr Burton says state government was not informing the industry about what they were doing, with official responses to the cladding issue coming from behind closed doors.

He also bemoaned the states’ fragmented responses to the issue, with governments slow to react, and no firm action coming from the fire engineering industry.

Victoria has imposed a limited ban on flammable cladding, Queensland has introduced chain of responsibility legislation, the report from the WA’s audit wasn’t yet available, while Tasmania had introduced ministerial discretion for bans, Mr Burton says.

His report was sponsored by building consultant ICPS Australia.

The Victorian agreements would need to be disclosed in owners’ corporation certificates, which would devalue properties, while implementation of agreements would leave some unsellable, Mr Bhasin says.

Mr Bhasin says it would be mostly impossible to secure the 75% votes needed to pass a special owners’ corporation resolution to authorise removal costs, because many lot owners are overseas investors.

The Victorian Building Authority has almost completed its cladding audit, and has issued almost 100 building orders to residents.