State Government moves to help subcontractors hurt by company collapse
1/4/04
Planning and Infrastructure Minister Alannah MacTiernan is working to assist subcontractors on key Government contracts, hurt by the collapse of Consolidated Constructions.
"This is in order to accommodate the 'subbies' for the position in which they find themselves, and hopefully give them some priority in getting that work,"
Ms MacTiernan said.
"The Government is negotiating revised prices for all the subcontractors involved in the Public Transport Authority (PTA) contracts. Those arrangements will minimise losses for them."
Meanwhile, the Minister said, Main Roads had a plan to help contractors in the north of the State also caught in the collapse.
"The affected contractors had been working on the now completed Marble Bar Road," she said.
"Roads in the Gascoyne and in the Pilbara have been damaged as a result of 'Cyclone Monty' and 'Cyclone Fay'.
"Rather than let them out to a major contractor, Main Roads will self-manage those repair contracts, to provide maximum opportunity for those local subcontractors to participate in them.
"This will create an environment in which the 'subbies' will have as much opportunity as possible to participate.
"We have had discussions with State Supply Commission about giving priority to local contractors, in recognition of the potential impact of the collapse on local economies."
Ms MacTiernan also said she was confident that the Public Accounts Committee would show the PTA and Main Roads had acted reasonably in their awarding of contracts to Consolidated Constructions.
"In my letter to chairman John D'Orazio, I have asked that the committee report on whether established practices were adopted by PTA and Main Roads and whether it is probable that the outcome would have been different if updated processes had been in place," the Minister said.
"However, regardless of the fact that the Government agencies have acted prudently, we want to do what we can to assist those affected by the collapse."