Builders wined, dined by regulator

Builders wined, dined by regulator The building industry watchdog hired corporate boxes at nine AFL games last year. Expected changes include a better complaints process and a restructure of four statutory boards - including the one responsible for disciplining builders - which are administered by, but not answerable to, the commissioner. But Phil Dwyer, head of small builders group Builders Collective of Australia, called on the state government to launch a judicial inquiry into the commission and replace it with a body answerable to Parliament. Mr Kefford's spending cuts are believed to have improved the commission's financial outlook but a deficit is still likely this financial year. A senior state government source last night said Planning Minister Matthew Guy became aware of the commission's heavy spending last year and directed Mr Kefford's predecessor, Tony Arnel, to monitor travel and entertainment costs. The commission is the state agency that regulates construction standards and the building permit system for works ranging from home extensions to high-rise city towers. it can perform its key service of being a regulatory body for the construction industry,'' he said. The source said the government supported Mr Kefford's decision to cancel entertainment at sporting events, adding that it was not what was expected of a regulator. The commission's new head, Michael Kefford, discovered the agency was in dire financial trouble when he assumed the role in February and immediately began cancelling spending on entertainment, consultants, travel and external lawyers. Housing Industry Association Victorian executive director Gil King said he was concerned the corruption allegations at the watchdog would have an unwarranted effect on public confidence in the wider building industry. Mr Arnel, who also recently joined the board of the National Occupational Licensing Authority, did not return calls. Mr Arnel is facing pressure over the scandal. Auditor-General Des Pearson is expected to announce another audit into the state's building industry soon, in particular the consumer protection mechanisms within the Builders Warranty Insurance scheme. The revelation that the commission has been spending money entertaining building executives at sporting events could add to perceptions that it is too close to the industry, to the detriment of consumers. Ombudsman George Brouwer is thinking of allegations officials sought kickbacks from building practitioners in return for issuing building licences and stopping formal investigations into consumer complaints. ''The money going out of the place was astronomical,'' said a well-placed source. All we need is a little getaway, not far from Sydney but with clear, fresh air and tranquil surrounds. Builders wined, dined by regulator Trade News selected by Local Linkup on 06/04/2012