BGC remains committed to achieving a long term sustainable solution to the Iplex pipes matter that is in the best interests of all WA homeowners and builders.
BGC believes the Joint Industry Agreement announced today is a temporary band-aid provision and there is simply not enough funding to resolve the matter for participants, even with BGC customers excluded from funding.
To date, BGC has spent more than $18 million of its own funds rectifying bursts in customers’ homes from Iplex pipes and performing preventative ceiling re-pipe works, in a staged remediation process similar to that announced today.
BGC notes that the Government of Western Australia announcement with Fletcher Building regarding the Iplex pipes matter is an in-principle agreement, not an enforceable agreement, so there is no deal to sign at this point.
BGC is currently being precluded from joining the Joint Industry Agreement due to the company recently commencing its own litigation against Iplex.
BGC’s hand has been forced to take direct action due to the risk of a separate class action lawsuit brought by impacted homeowners against Iplex.
If consumers lose their class action, Iplex will no longer contribute to the Joint Industry Agreement. This removes 80% of the funding, putting the WA building industry and its customers at risk, leaving a significant financial burden. Builders need the ability to defend their plumbers and themselves, which is not afforded under the proposed agreement.
BGC believes the focus should be on securing long-term funding to ensure that all impacted homeowners have their homes satisfactorily remediated now and across the 15-year warranty period the State plans to introduce into legislation.
For BGC, this means a guarantee from the ASX200 multinational Fletcher Building Group, who confirmed this morning that they are not guaranteeing the Joint Industry Agreement. The agreement with the Government of Western Australia is only backed by its Australian subsidiary Fletcher Building Australia.
BGC remains concerned that, while this issue has been live, Fletcher Building Australia has transferred assets from Australia to New Zealand over the last 18 months, and that it has failed to adequately provision for the true cost of this program.
This may result in Iplex being unable to fund all the necessary remedial works to homes under the Joint Industry Agreement in the future.
BGC is not responsible for these failures. However, to protect WA builders and households it is important Fletcher Building is held accountable for the faulty pipes supplied through its Iplex business.
BGC will continue to engage and evaluate its options moving forward.
Media contact:
Michael Cairnduff, Purple
M: 0406 775 241
E: [email protected]