Kit home customers fall through cracks ?

SUE and Steve Stanger face the miserable prospect of a second loan on their Avondale plot, after falling through the cracks between the Building Services Authority and the Office of Fair Trading.

Like Shane McMuhttp, who was arrested on Sunday after a confrontation with Public Works Minister Robert Schwarten, the Stangers paid Steelsmart Homes for a kit they have never received.

Mrs Stanger said the couple had no help from the Building Services Authority (BSA) because they were owner-builders, and they had little hope of assistance from the Office of Fair Trading.

“You've got to get a BSA licence to build the home - yet they won't help us,” Mrs Stanger said.

She said the BSA should have more powers to assist former Steelsmart Homes customers, particularly due to the company's close ties to Coral Coast Homes.

“We ordered bricks and window fittings through (Steelsmart Homes), and they used the same BSA number as Coral Coast Homes,” she said.

But Public Works Minister Mr Schwarten said that consumer protection legislation in Queensland was structured around consumers contracting with a licensed building contractor for both the supply and construction of their home.

“Whether or not the components of the home are in a kit form is of no concern to the consumer, provided they enter a contract with a licensed building contractor which incorporates the kit as part of the total contract price,” he said.

“It was for this reason that the BSA was able to assist the majority of clients who had contracts with Coral Coast Homes Pty Ltd for construction based on a kit.

“People who purchase a kit home with the intention of constructing it themselves as an owner-builder need to take the same precautions as any prudent consumer would take when making a substantial purchase.”

He said customers should consider paying only a small deposit, and putting money into trust, with the bulk of the purchase price paid when goods were received.

Coral Coast victim has Bligh's sympathy

AN angry exchange, which allegedly involved a jug, has potentially landed one man in hot water - but yesterday there was sympathy in Bundaberg from Queensland Premier Anna Bligh.
“Clearly no-one wants to be in a situation like this,” Ms Bligh said.
“This person was in very distressing circumstances.”
Mr McMullen lost $70,000 after he signed up to build a house with Coral Coast Homes and then the company collapsed earlier this year.

The pensioner was charged with a public nuisance offence and obstructing police following the alleged incident at Sunday's community cabinet.
Sporting an injury to his hand, Minister for Public Works Robert Schwarten fronted the media yesterday after a cabinet sitting in the Bundaberg Civic Centre.
When asked about the injury the minister replied: “Better my hand then my head.”
“You don't expect to go to a community cabinet and for that to happen.
“But I'm more concerned for that man.”
Yesterday Mr McMullen was resting at home.
The pensioner said he felt all avenues to getting his money back were exhausted.
“I'm totally exhausted and devastated by the whole thing,” Mr McMullen said.
“I'm on a disability pension and raising a child by myself.
“I'm renting and paying off my mortgage.”
Mr McMullen said that for the first time in his life, he had to take a food voucher so he could feed his family.
“It's good someone is there to help, but I've always given to people - this is the first time I've taken and I'm embarrassed that I had to go.”
During the press conference after the cabinet meeting in Bundaberg, Ms Bligh again addressed the concerns raised by more than a 100 unionists outside the community cabinet on Sunday.
Union members from multiple organisations including Queensland Teachers' Union, the Electrical Trades' Union, and CFMEU expressed outrage about the Bligh government decision to sell off state-owned assets.
The Premier repeated that scrapping the sale meant the government's building program would also have to go.
“We are absolutely determined to protect the building program and the jobs it creates,” she said.
Ms Bligh said she did not like the idea of the sale either.
“But there is really no alternative,” she said.

No security boost at Qld forums

Security will not be boosted at community cabinet meetings despite a man trying to hit a government minister with a water jug at a forum in Bundaberg, Queensland Premier Anna Bligh says.

A 48-year-old man was ejected on Sunday after throwing a jug of water at Public Works Minister Robert Schwarten during a one-on-one meeting with him at the Bundaberg North State High School.

After throwing the water, the man tried to hit the minister with the jug as Mr Schwarten raised his hands to defend himself against the blow.

The man was escorted outside by police, losing his shoes in the scuffle.

Mr Schwarten was on Monday nursing a bruised and swollen hand as he expressed his concern for the man.

He said the man had paid $70,000 up front for a kit home and lost the money when Coral Coast Homes went under.

But because he did not sign a building contract he was not covered under the Building Services Authority (BSA), Mr Schwarten said.

"He's really come along there yesterday expecting government to solve all of his problems and the government can't do that," the minister told reporters in Bundaberg on Monday.

He said the "dangerous" incident was not a nice one but he felt safe participating in future community cabinets.

"You don't expect to go to a community cabinet and for that to happen but I guess what it shows is that people get very distressed," he said.

"He was certainly very distressed and quite frankly he's more to be pitied than scorned in this circumstance.

"He's in desperate trouble and he took his frustrations out on me."

Mr Schwarten is not pressing charges relating to the assault but police have charged the man with public nuisance and obstructing police.

He will face Bundaberg Magistrates Court on September 18.

Ms Bligh said the "rare" incident would not change anything about the way community cabinets were run in the future, including security numbers.

She said there had been enough security at Sunday's meeting and she was committed to keeping the meetings as open as possible.

"I want people to feel that they can walk into a school hall and meet with any member of my government and my cabinet unimpeded by a strong police presence," she told reporters in Bundaberg.

"I don't think that's necessary."

Sunday's community cabinet, which gave residents outside of Brisbane the chance to meet one-on-one with government ministers and senior departmental officers, attracted the largest number of registered attendees and around 300 protesters.

Anger at Community Cabinet Visit

FRUSTRATION and anger spilled into the street yesterday as teachers and other union members took their protests straight to the top during Bundaberg's community cabinet.

Flanked by advisors and security, Premier Anna Bligh walked a gauntlet of more than 100 members from different unions to get into Bundaberg North State High School's hall.

About 300 protesters, irate over plans to sell off government assets and low teachers' pay, chanted and held up signs as Premier Anna Blighand her cabinet colleagues arrived.

Inside, a man used the public forum to criticise the Building Services Authority (BSA) for not helping him after he lost "everything" to a dodgy builder who promised to build his house.

"I voted for you. I'm sorry I did," he told Ms Bligh.

Afterwards, he met with Public Works Minister Robert Schwarten to discuss the matter one-on-one.

However, the man was escorted outside by police after he threw a jug of water at the minister and then tried to hit him with it.

Mr Schwarten put his hands out to defend himself as police officers pulled the man away.

The man lost his shoes in the scuffle.

The man arrested was Shane McMullen, a pensioner who lost everything following the collapse of Coral Coast Homes earlier this year.

Mr Schwarten is not pressing charges and said he felt sorry for Mr McMullen who was not covered under the BSA's powers due to the nature of the fraud.

It's understood Mr McMullen paid up front for a kit home but did not sign the appropriate contract that would have afforded him insurance under the BSA.

The 48-year-old man was charged with public nuisance and obstructing police and will face the Bundaberg Magistrates' Court on September 18, a police spokesman said.

Bundaberg Police Inspector Kevin Guteridge said that apart from one disturbance, the event ran safely and smoothly.

Premier Anna Bligh and her ministers covered a range of issues and made a number of announcements during her Bundaberg trip.

She also welcomed outpouring of community suggestions and opinions.

“We want to know what the next things are that you would like us to invest in,” she said.

Sunday's community cabinet, which gives residents outside of Brisbane the chance to meet one-on-one with government ministers and senior departmental officers, attracted the largest number of registered attendees.

Don't confuse us with broke building company

A stigma against builders on the Fraser Coast has seen the largest home builder in Queensland - Coral Homes - suffer.

Since 1990 Coral Homes has been building houses from Bundaberg to Sydney but that has not saved the company from the building industry fallout.

Fraser Coast residents have avoided the business since Coral Coast Homes went into liquidation at the start of June because they mistakenly believe the two companies are the same.

Coral Coast Homes - which had no affiliation with Coral Homes - went bust owing about $1 million to customers and tradespeople across the Wide Bay.

Coral Homes marketing manager Glenn Kennedy is urging people to do their research and believe the company will be in Hervey Bay for the long term.

“If people do their homework they will find out that Coral Homes is one of the most reputable and trusted companies in business.”

Mr Kennedy said the family-owned business was not simply Coral Coast Homes re-branded and was not a franchise.

He understood people were cynical about the industry and that it was a sensitive issue but said trustworthy builders were being affected.

Housing consultant Trevor Lollback is based at the company's Dundowran display home and says people are avoiding the place.

“People are just confused. It really, really has affected us something terrible.”

Not only has the Bundaberg based Coral Coast Homes gone bust this year, so too have a number of Queensland companies including Cavalier Homes Hervey Bay.

Cavalier Homes (J and J Harvey Constructions) became insolvent in May, owing more than $1.5 million to sub-contractors, suppliers and customers. More than 100 Fraser Coast businesses were on the list of creditors

BSA ignores John Biles bankruptcies

CHRIS Dalby spent hours researching before he signed up with Steelsmart Homes - yet he found out too late that director John Biles had two previous bankruptcies.

“I wouldn't have touched them with a 10 foot pole if I'd known,” Mr Dalby said.

Mr Dalby searched the Building Services Authority (BSA) and Australian Securities and Investments Commission (ASIC) websites before he signed his contract, but said his time was wasted because the information was not there.

“The BSA has been negligent because they either didn't check, or disregarded it,” he said.

Mr Biles went broke in 1987 and again in 1997, two years before BSA introduced regulations against people with previous multiple bankruptcies from holding licences.

“The BSA has the toughest anti-phoenix laws in the country, which means that anyone who has become bankrupt since 1 October 1999 faces lengthy and, if it happens a second time, lifetime bans,” BSA general manager Ian Jennings said.

“Since 1 October 1999, BSA's public register records any individual who becomes bankrupt and is banned from holding a licence. This is shown on BSA's public register for 10 years.”

The BSA failed to act on Mr Biles' two previous bankruptcies as they were before 1999, and Mr Biles was listed as a director on the Coral Coast Homes licence in 2005.

His individual licence was also reissued in 2008, and no warning was posted on either licence to alert potential customers.

“As part of the application process, applicants are required to legally declare whether or not they have ever been declared bankrupt, or been a director of failed company,” Mr Jennings said.

He said the BSA checks databases to monitor bankruptcies and liquidations.

Bundaberg Master Homes director Grant Reedy also had a previous bankruptcy before his company went into liquidation in May, owing more than $1.5 million.

Despite many customers publicly voicing their dissatisfaction with the system, Public Works Minister Robert Schwarten maintained that BSA's legislation was effective.

“There will always be a level of dissatisfaction, but regrettably there will always be people who do not get the outcome that they believe they should get,” Mr Schwarten said.

Private eye joins hunt for builder

THE search for Coral Coast Homes director John Biles has intensified, after a private investigator was engaged to track the failed builder down.

The investigator said he was looking for any information that may lead to locating Mr Biles for a Bundaberg-based client.

“I'm just after as much information about him, his family and his business, as I can get,” he said.

He said even the smallest scrap of information would be useful to him.

“Where they live, where he goes on holiday, and cars he drives,” he said.

Fraser Coast painter Ray King said he did not know who engaged the investigator, but he hoped Mr Biles was tracked down to face justice.

“I'm looking for him too,” Mr King said.

A private investigator has joined the hunt for Coral Coast Homes director John Biles.

“It's been a little bit quiet and as far as I know he's not been found,” painter Ray King said.

Mr King, who instigated legal proceedings against Mr Biles, said there had been talk about where Mr Biles was.

“I've heard all sorts of rumours - we did track him down to his son's place in Brisbane, but he's moved,” he said.

Coral Coast Homes went into liquidation at the beginning of June, owing about $1 million to customers and tradespeople who may have little hope of recovering their money if Mr Biles cannot be found.

Member for Burnett Rob Messenger said he had written to Police Minister Neil Roberts, asking why Mr Biles had not been investigated for fraud.

“I want to know why the police aren't out looking for him,” he said.

Yesterday in an estimates hearing, Fair Trade Minister Peter Lawlor denied claims the government knew about the problems at Coral Coast Homes 12 months before the company collapsed.

Creditor Denis Seth told the NewsMail he had recently given a statement to the Office of Fair Trading and he believed they were investigating.

BSA general manager Ian Jennings said the BSA had not been contacted by the private investigator in relation to Coral Coast Homes or Mr Biles.

To contact the investigator, telephone 0411 959 438 or email help@countermeasure.com.au.

Govt "didn't know of " Coral Coast Homes woes

The Queensland Government has rejected claims it knew about problems at Coral Coast Homes 12 months before the company collapsed.

Coral Coast Homes went into liquidation in early June owing about $1 million to about 100 customers.

The Member for Burnett, Rob Messenger, told Parliament in June that the Department of Fair Trade and Building Services Authority knew about the alleged misconduct of the director, John Biles, at least 12 months beforehand.

But Fair Trade Minister Peter Lawlor has told a budget estimates hearing that the complaints were made by customers to the Office of Fair Trading only days before the collapse of the company.

"I have been assured by the Commissioner for Fair Trading that according to their records that the Office of Fair Trade [had] not been aware of concerns about these companies' operations for 12 months," he said.

"Fair Trading has now received 11 written complaints concerning these companies with the first only having been received [on] the 1st of June 2009."

Hi,
The Trade and Builders Database (TABD) have been following the situation with Coral Coast Homes/John Biles.

As a result of the poor outcome of the situation we will be pro-actively compiling as much information on the situation. This will entail meeting with as many unsecured creditors and relevant parties as possible.

Specifically we will be adding information to the Trade and Builders Database. This information is available to all TABD members who use the database as a reference facility. Dodgy builders are defaulted for a minimum of 5 years. As this is a national database, all information gathered will help prevent persons such as John Biles trading anywhere in Australia.

Further more, I personally will be following up this situation and will be in the Wide Bay area from Monday 27th July.

If you have any information that could assist us with our inquiries feel free to contact me via the details below or alternatively call Hami Hikaiti (Director) on 0411 277 308.

Kind Regards,

Kieran Browne

Mobile 0406 257 257
Address PO BOX 932 Redcliffe, 4020
Email kieran@tabd.com.au

Waiting for BSA answers?

TWO weeks after a meeting with Building Services Authority and Office of Fair Trade officials about Coral Coast Homes, former customer David Kapp is still waiting for a call to discuss his insurance claim.

He said a representative from the Office of Fair Trading has agreed to meet him next week, but a discussion with BSA general manager Ian Jennings has still not been arranged.

“I haven't heard from the BSA since June 30, I'm still waiting,” Mr Kapp said.

Public Works Minister Robert Schwarten has come under fire from Member for Burnett Rob Messenger over his handling of complaints about the BSA.

In answer to a Question on Notice from Mr Messenger about the BSA's role, Mr Schwarten said it was “not appropriate” for him to comment on details of the company, or the BSA's investigation.

“The minister is trying to hide behind the excuse that, because I referred the actions of his BSA managers to the CMC for possible misconduct, therefore he doesn't have to and won't answer questions during estimates regarding the matter,” Mr Messenger said.