Media release – Elise Archer, Minister for Workplace Safety and Consumer Affairs, 25 January 2022
Support for consumers affected by construction company failures
The Tasmanian Government will develop a financial support package to assist those negatively affected by the recent failure of Tasmanian Constructions Pty Ltd, trading as Hotondo Homes, and Inside Out Constructions Pty Ltd.
We recognise that buying or building a home is the biggest investment many families will make, and we have already taken action to support consumers by announcing our intention to reintroduce home warranty insurance in Tasmania.
Home warranty insurance covers incomplete or defective building work in the event that a builder has died, disappears or becomes insolvent, and a model is currently being developed by the Department of Justice and Department of Treasury and Finance. This model will be the subject of consultation with stakeholders in the coming months.
Once implemented, home warranty insurance will provide Tasmanian property owners with greater protection when building a home.
However, we recognise that more needs to be done to help those affected by the recent failures, and it is our intention that the financial support package will operate similarly to home warranty insurance, if it was already in place.
Further details of the scheme will be made available in the coming weeks.
I urge anyone in need of immediate advice regarding building related matters to contact Consumer, Building and Occupational Services on 1300 654 499.
Jen Butler MP, Shadow Minister for Building and Construction, 25 January 2022
Archer’s consumer building support must be extended
Today’s belated government support for consumers hit by construction company failures is a good start, but needs to go much further to deal with the crisis facing the industry.
Shadow Minister for Building and Construction Jen Butler said an inquiry is still needed to ensure a comprehensive response, rather than a piecemeal approach.
“Labor welcomes the government’s announcement of a financial support package to help consumers affected by the failure of Hotondo Homes and Inside Out Constructions,” Ms Butler said.
“But this belated announcement doesn’t go anywhere near far enough to offer comprehensive protection to consumers and builders, or future proof our building industry.
“The Minister Elise Archer has spent months shutting down Labor’s calls for an inquiry into better protections for the building industry and homeowners, after a flood of complaints from Tasmanians who, in many cases, have lost their life savings.
“Only now, after the collapse of Hotondo Homes and Inside Out Constructions, has Ms Archer finally acted to provide consumers with financial support.
“While this is good news for those affected, it will do nothing to help Tasmanians who had already been stung by this government’s lack of protection.
“What is clearly needed is a broad inquiry to consider the best way to protect all industry players, and ensure the system operates fairly for everyone.
“Labor will continue to push for this crucial inquiry so we can create and maintain an industry that is robust, agile and fair.
Ella Haddad MP, Shadow Housing Minister, A picture containing icon, 25 January 2022
Tasmanians trapped in housing crisis insulted by government’s constant spin
The Gutwein Government is more interested in trying to spin the true extent of its housing failures than provide solutions for thousands of Tasmanian families trapped in accommodation crisis.
Shadow Housing Minister Ella Haddad said the Report on Government Services released today showed that despite its claims to be building homes, the Liberal Government continues to oversee a housing crisis.
Ms Haddad said for the government to claim today that Tasmania “continues to perform well on housing and homelessness assistance” was an insult to each of the 4,400 families on the housing wait list and shows just how out of touch Ministers Michael Ferguson and Elise Archer are.
“The reality felt by thousands of Tasmanians paints a very different picture,” Ms Haddad said.
“There are already more than 4,400 families on the housing waiting list, with an average wait time of over a year to be housed.
“Ms Archer and Mr Ferguson claim social housing is keeping pace with population growth, but they know that even on their own projections the wait list is set to blow out to over 5,000 imminently.
“Michael Ferguson has boasted he is delivering “a house a day” but even if that were the case, what that actually means is he will fall short of even meeting his own targets of 3,500 homes by 2027.
“Meanwhile Tasmanians are sleeping rough, emergency shelters are turning away people in droves because they are full and there is insufficient transitional housing available to transition people from emergency shelters into secure housing.
“The government says the ROGS data shows people who need housing are being housed but they know that is just not true.
“There are thousands of Tasmanians missing out every day under this government and things are only getting worse on their watch.”
Media release – Shane Broad MP, Shadow Treasurer, 25 January 2022
Rising costs hit Tasmanians hard
New figures out today show Tasmanians continue to suffer under rising prices, with cost of living increases now significantly outpacing wages growth.
Shadow Treasurer Shane Broad said the latest CPI data shows Hobart has the highest quarterly inflation of any capital city and the highest rate here since 2000.
“Today’s figures confirm what thousands of Tasmanians already know – that they are struggling under the weight of ever-rising prices and stagnated wages growth,” Dr Broad said.
“Hobart has the highest quarterly inflation rate of any capital city – at 2.2 per cent – compared to the national average of 1.3 per cent.
“Annual inflation is now running at 4.5 per cent, well above the national rate of 3.5 per cent, with cost of living increases now the highest they’ve been in 20 years.
“With the most recent wage growth figures at 2.7 per cent in the year to September, cost of living increases are now significantly outpacing wages growth.
“Among the key areas affected, electricity prices rose by 16 per cent in the quarter, fuel by 12.4 per cent, utilities by 9.3 per cent, housing by 5.5 per cent and transport 5.2 per cent.
“So despite all the bragging by this government about how well the state is doing, the reality for far too many Tasmanians is very different, with state government decisions on water pricing, broken promises on fuel pricing and failures on housing only adding to the pain.
“And it’s not just Tasmanian families and individuals who are hurting – the Liberals may be spruiking CommSec’s January State of the State Report, but the fact is that the report has assessed the results for the last quarter, before the borders reopened.
““Since then, businesses have had to deal with a big downturn from the COVID outbreak while also being slugged with increases in fixed costs like electricity.
“All of this adds up to a world of pain for Tasmanian families, businesses and individuals. No amount of spinning the numbers in the Liberals’ favour will change that.”
Cassy O’Connor MP, Greens Leader and Housing spokesperson, 25 January 2022
ROGS Data Confirms Massive Fail on Housing and Homelessness
The latest ROGS data confirms in hard numbers the Liberals’ failure to invest in increasing supply of social and affordable housing.
The housing crisis is unfolding and deepening on their watch. More and more Tasmanians are struggling to find and afford a home.
The average growth in supply is around 72 new homes a year since 2013. In 2020, the Liberals built only 250 new affordable homes. The following year, just 250. The ROGS data is utterly damning.
Tasmanians have a right to know why the Gutwein Government is spending so little ensuring Tasmanians have a place to call home.
This underinvestment in supply, along with a refusal to rein in short stay accommodation and soaring rents, is why there’s a prolonged housing and homelessness crisis in Tasmania.
