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."

Coral Coast Homes victims snap

SHANE McMullen is at his wit's end after Building Services Authority (BSA) officials gave little hope he could recover money lost when Coral Coast Homes and Steelsmart Home collapsed.

“I feel like I've failed as a father - I'm supposed to put a roof over my children's heads, and I can't,” Mr McMullen said.

“The BSA and the Office of Fair Trading both say there is nothing they can do.”

BSA general manager Ian Jennings admitted he would not have built a house with Coral Coast Homes from “about March or April”.

He made the startling confession at Tuesday night's meeting with Office of Fair Trading regional manager Peter Nell and customers of the collapsed builder - sparking angry jeers from the crowd, with some people handing over money to the company as late as May.

BSA started investigations in April last year, but Mr Jennings admitted suspicion the business supplied inaccurate information.

“I did not believe every word that John Biles said,” Mr Jennings said.

“Why didn't BSA act sooner? It's a tightrope we walk.”

The company's licence was suspended on May 25, and finally cancelled on June 24, citing “Failure to satisfy financial requirements”.

Mr Biles is currently excluded from holding a contractor's licence or being an influential person in a building company for five years.

But Coral Coast Homes and Steelsmart customer Robert Thompson said it was not enough.

“Next week, it will be two years since I had the floor laid - and I'm still waiting for the rest of the house,” Mr Thompson said.

He said it was “ridiculous” that Mr Biles could return to the industry within such a short timeframe.

Member for Burnett Rob Messenger said he was “very disappointed” with the response of the BSA and the Office of Fair Trading.

He said customers were so frustrated they had approached police in hope of a prosecution for fraud.

“I will be asking Police Minister Neil Roberts why police can't investigate whether fraud was committed,” Mr Messenger said.

Coral Coast Homes owes $1m

THE liquidator of Coral Coast Homes has warned that the cupboard is bare for customers and tradespeople, with the company's debts of up to $1 million - and no assets.

“The director (John Biles) is already talking about bankruptcy,” SV Partners director David Stimpson said.

Mr Stimpson said the company had 15 projects underway, which were unable to be completed.

Fifteen home-owners and scores of tradies, contractors and suppliers are among the 100 creditors who are unlikely to see a cent.

The company owes $200,000 to associated businesss SSM Products - which traded as Steelsmart Homes and was directed by Mr Biles.

Building Services Authority general manager Ian Jennings said the rights of homeowners under the BSA's Home Warranty Insurance Scheme would not be affected, as it was a licensed company at the time it went into liquidation.

But those who bought kit homes through Steelsmart Homes may be left to recover their money through the courts.

“The Office of Fair Trading does not have the legislative power to assist in getting your money back if a company has become insolvent, however it can investigate if the business has acted illegally,” a spokeswoman said.

“It is illegal for a business to accept payment... if the business has no intention to supply the goods or services or continues to trade while insolvent.”

A creditors meeting has been scheduled for 11am on June 22 at the Sugar Country Inn.