The hyenas are probably laughing! Click HereEXCLUSIVE: SOURCES close to the Senate Economics Committee Inquiry into the rort of Builders Warranty Insurance is nothing more than a whitewash.
PropertyReview.com.au confirmed last night that the Labor Party dominated inquiry into the Housing Industry and Vero Insurance controlled Builders Warranty Insurance is likely to find that the ‘Last Resort Insurance’ schemes should survive scrutiny despite being abandoned in Tasmania .
It still reigns supreme in the Labor Party states of New South Wales and Victoria .
“State Labor governments, the Rudd government are leaning heavily on the Senate Inquiry to support the farce of Builders Warranty Insurance,” one disgruntled Victorian Labor Party figure told PropertyReview.com.au late yesterday.
“The Senate Inquiry seems to be a farce,” he added.
The source revealed to PropertyReview.com.au that the Senate Inquiry and the Rudd government may have been influenced by self interest lobby groups.
In fact, on the Senate Inquiry website the Housing Industry Association have been allowed to write a privileged - totally scurrilous and defamatory response - to the Builders Collective submission to the Inquiry without fear of court action.
Consumer advocacy Choice in its recommendation to the Inquiry stated:
“Australian Governments should take early action to provide better and uniform protection for those who have a home built or renovated. Specifically, this should entail: • Guaranteed access for consumers to alternative dispute resolution mechanisms • Provision of greater scope to de-register builders who do not meet appropriate performance standards; and • A revamping of compulsory builders’ warranty insurance to ensure that it is of genuine value to consumers and that consumers understand the product.”
In August 2004, Choice found warranty insurance basically junk insurance.
In fact, Choice stated:
“In August 2004 CHOICE Magazine investigated home warranty insurance. That investigation found that in most states mandatory insurance was unreasonably limited to circumstances where a builder dies, disappears or becomes insolvent. CHOICE also found that the privatisation of home warranty insurance coupled with changes to the insurance market had whittled away many consumer protection measures.”
The HIA in their submission even bagged Choice as being: “It appears that Choice Magazine is not interested in providing a fully informed (let alone a balanced) view on this issue”.
It’s little wonder the cynics are already stating the Inquiry could prove a whitewash manipulated by self interest groups.
SOURCE: PropertyReview.com.au
ZEBRAaustralia wonders just who it is that should be protecting consumers. The buildg industry? The insurance industry? Government? Themselves? Ideally it must be all players! However, they must be equipped do it!
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