Builders wined, dined by regulator

Builders wined, dined by regulator VICTORIA'S building industry watchdog faces a $3 million deficit blamed in part on exorbitant spending, including hiring corporate boxes at the football to entertain construction industry executives - the very people it is supposed to regulate. 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. Mr Kefford's spending cuts are believed to have improved the commission's financial outlook but a deficit is still likely this financial year. Mr Guy told The Age he was concerned by allegations of corruption and promised major reforms. 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. 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 is facing pressure over the scandal. Mr Arnel remains chairman of the not-for-profit group, the Green Building Council of Australia. Ombudsman George Brouwer is investigating allegations officials sought kickbacks from building practitioners in return for issuing building licences and stopping formal investigations into consumer complaints. 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. Yesterday, The Age revealed up to 30 commission officials and consultants are being investigated for alleged corruption, misconduct and harassment. 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. 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. Mr Arnel, who also recently joined the board of the National Occupational Licensing Authority, did not return calls. A spokesman for the council declined to comment on the matter. Advertisement: Story continues below ''The money going out of the place was astronomical,'' said a well-placed source. 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. Builders wined, dined by regulator Trade News selected by Local Linkup on 06/04/2012