Major overhaul of Building Regulator good news for Victoria’s consumers
Consumer Action Law Centre has welcomed the Victorian Government’s announcement today of a major overhaul of the Victorian Building and Plumbing Regulator’s enforcement powers and structure, and domestic building insurance.
“It’s a good start for a sector renowned for the challenges it presents to Victoria’s consumers,” Consumer Action’s CEO, Stephanie Tonkin said.
“The development or renovation of a house is one of the most significant and costly transactions a consumer will ever enter into, and when things go wrong there are lasting financial, emotional and family impacts –even for subsequent purchasers,” she said.
Building disputes are complex and very challenging for a consumer to navigate, particularly due to the power imbalance and unavoidable information asymmetries between the consumer and builder, plus the large amount of money usually involved.
“Shifting domestic building insurance to first resort insurance and developer bonds are game changing reforms. The application of these protections to more consumers, including more apartment owners, is a welcome safety net and will avoid harms we see today.”
“Ensuring the strongest consumer protections through increased Regulator powers, oversight and resourcing, and integration of different parts of the regulatory system and intelligence, will have a preventative and deterrence effect.
“This is key to rebuilding consumer confidence and making an effective building sector in Victoria. We look forward to working with the Government on implementing these policy reforms,” Ms Tonkin said.
ENDS
Media contact: Mark Pearce, Media and Communications Adviser, 0413 299 567, media@consumeraction.org.au
