Treasurer Michael Ferguson 'concerned' over Multi-Res liquidation

The package will be based on the financial support that would have been available had a home warranty insurance scheme still been in place.

Multi-Res, the building company founded by British-born businessman Colin Barratt, went into liquidation on Sunday, with undisclosed debts and tens of houses and apartment projects left incomplete.

One client caught up in the collapse, who did not wish to be named, said they'd lost upwards of $60,000 through Multi-Res, and was left with a part-dug trench for the proposed house's foundations.

Australian Community Media reported in January that another Multi-Res customer paid out $38,000 as a deposit last year for construction of a house on a vacant lot on the South Arm peninsular, but none of the work had been completed.

Another of the company's clients said she has handed over $500,000 for units in Claremont that she estimates are only 60 per cent finished.

Worse, she said that Multi-Res has claimed that she owed them a further $30,000 for work completed.

She said the company had invoiced her for work that wasn't up to scratch or hadn't even been completed, and that the Multi-Res liquidator appointed, David Levi, had asked her why she hadn't paid.

Mr Ferguson said he was "concerned" about the failure of Multi-Res, and urged Tasmanians caught up in it to approach Consumer, Building and Occupational Services (CBOS) - Tasmania's building and consumer regulator.

"Even though our home warranty scheme is currently being drafted and will be introduced into the parliament this year, in advance of that we are still effectively providing the same support to consumers who find that their builder has either suffered a financial problem or gone bankrupt," he said.

"So we are providing that support, it will be tailored to the personal circumstances, and we definitely encourage anybody caught up in it to get in touch with CBOS," he said.

In a media release later on Thursday, Attorney-General Elise Archer said the assistance package available would property owners with an incomplete building project to be able to claim for their loss up to 20 per cent of the contract price, to a maximum of $200,000.

Those that have paid deposits but have not seen any construction started be able to claim for their loss up to 5 per cent of their contract price, Ms Archer said.

Chief executive officer of Master Builders Tasmania Matt Pollock said the state government used the same mechanism last year to provide financial support to victims of the Hotondo Homes builder collapse in Hobart.

"Master Builders at the time was supportive of that, we advocated for it, and we have also been advocating for the re-introduction of the Home Warranty Insurance Scheme for a number of years," he said.

Tasmania is the only state that does not currently have such a scheme - the government's draft bill over it finished public consultation recently, and is expected to be introduced into parliament later this year.

Mr Pollock said the Multi-Res collapse showed how important these schemes are.

"When building companies fail like the one we have seen, home owners can be left out to dry, and that [insurance] protection needs to be there," he said.

Labor Building and Construction spokesperson Jen Butler said the government has dragged its feet on the Home Warranty Insurance Scheme bill, and Tasmanians caught by the Multi-Res collapse are now paying the price.

"The Rockliff Government must stop dragging its heels and put measures in place that protect consumers and contractors impacted by the collapse of building companies," she said.

"The minority Liberal Government has done too little, too late on the issue with consultation about home builder warranty insurance only beginning 12 months ago."

"Sadly, we are still waiting to see what regulations may be put in place with Tasmania the only state without mandatory home builder warranty insurance in the country."

But Ms Archer responded by pointing out it was under a Labor government in 2008 that the state's previous home building warranty scheme was cut.

"There's no doubt Labor's decision to scrap home warranty insurance was the wrong one but our Government is taking action to rectify it, with legislation to be introduced in the coming months."

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