NSW apartment owners demand flammable cladding bail-out

Strata Community Association NSW president, Chris Duggan, has called on the NSW Government to fund the replacement of dangerous flammable cladding, warning that NSW could possibly have even more buildings impacted by cladding issues than Victoria. From The AFR:

“At a minimum, what they should do is to commit to saying ‘We’re going to match that cladding funding arrangement’,” Mr Duggan said on Sunday…

This was necessary in NSW as high-rise developments started in Sydney before Melbourne, were spread across a wider area, and the number likely exceeded that of Victoria…

Mr Duggan said he expected the total number of cladding-affected buildings in NSW was close to 2000…

“Melbourne has had [combustible cladding] isolated primarily around the city and South Melbourne, but Sydney has had all the transport corridors going out west,” he said.

Last week, the Victorian Government announced a $600 million funding package to replace flammable cladding, equating to around $230 per Victorian household.

Instead of following Victoria’s lead and throwing taxpayer’s money at the problem, the NSW Government should establish a royal commission into flammable cladding and high-rise construction, given also the proliferation of cracking and faults across Sydney’s apartment market.

A royal commission is necessary to sift through the issues in a detailed and methodical manner, to expose those responsible, to recommend policy action, and to prevent a recurrence in the future.

Unconventional Economist
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    • Why would Julie un-retire? To spruik asbestos cladding?

      Scomo likely got a few calls from donors over the weekend about flammable cladding. I expect him to soon announce a multi-billion dollar federal fund “to restore confidence in Aussie buildings”

      For the PCA and their lobbyists, the return on investment on political donations is 1000:1. Donate a few hundred thousand – get back a few billion. Good for the states too, as fixing flammable cladding will keep the tradies construction boom booming!

  1. At the very least the government should put a caveat on every property “bailed out” by the government where the costs of remediation are deducted from any future purchase price. That way the government can facilitate the remediation but it should be funded by the owners.

  2. A Royal Commission that’s a fantastic idea, I was talking with a barista friend just the other day and was bending my ear about his finances being stretched by IP portfolio revaluation / End of IO loans.I know he’s available for a good “in depth” RC that’d be right up his alley, he knows all the ins’n’out’s of Negative gearing and off-the-plan apartment buying he’d make absolutely sure that no one doing the honest thing by buying RE, ever lost a penny on their Investment or their house.
    I’ll forward your email.
    ( oh wait a minute he’s actually a Barrister…wtf use would he be)

  3. I lost money on SYR and I demand bailout too. It was not my fault SYR can’t get their sh1te together and hit one production target.

    • darklydrawlMEMBER

      ^^^^ THIS!! There is potentially no end to this madness – why do taxpayers have to bail out other folks who made poor investment decisions?

      The Grubbermint can darn well bail me out of all my lousy share trading decisions. After all, it wasn’t my fault that ABC Learning and Allco turned out to be a sham despite all the good looking annual reports. Where’s my compensation?

      • Dodgy does - caveat emptorMEMBER

        Fraudalent dodgy spruikers like ABC and Allco suck us in Stock Market. No bailout. Learning experience…
        The religion is property at Hillsong. Fraudalent dodgy spruikers of property suck you in – Govt will help.

  4. Same same, all the time. Take the bushfire response (anywhere at all). If you’re one of 500 home owners to lose your home in a fire, the gov’t will look after you and make headlines doing so. But if just you yourself lose your home…well sorry bucko, you’re on your own, no news in that. Even better is if you are one of the lucky ones whose homes did not burn down. Now you live in a wrecked, deserted, vacant black landscape about to be pillaged by every whoresson with money to invest and an eye for profit. You get no insurance payout and no gov’t assistance, but your home is worth 50% of what it was, your beloved region is now horrible and everyone you know is gone (dead or moved away).

  5. Its not a bailout if its a social safety issue unless some think fixing the pipes in Flint for lead is a bailout issue.

      • They are a public safety concern not only to the humans that reside in them, but the surrounding humans and property.

        I have no dramas with legal action against those responsible, albeit the imperative is to sort this out first and foremost before loss of lives or property. That is unless you are arguing that we should let Boeing fly dodgy air frames and punters should take it on the nose e.g. boarding pass lotto or bad luck chap it landed on your house thingy ….

      • First of all the tax payers thingy is moot, your taxes don’t pay for national level anything, it destroys money, its issued as a tax credit in advance, that is unless you prefer being on the nose for international investors and how that reflects on your nations sovereignty.

      • I would add the legal aspect is not conditional on remedying the fault that puts public at large and the future of youth, due to well known medical factors at risk.

        Then some get bent about a JG, doing stuff the market and investor class want no part of because lack of rents or short term yield.

  6. ErmingtonPlumbingMEMBER

    I new I was going to be up till 2 or 3 in the morning when I started watching this SBS World movie after 1 am.
    “The Fool” is a 2014 Russian film about a plumber and an apartment Tower ready to collapse.
    And about how sometimes it’s better to keep your mouth shut.
    A depressing film with a depressing ending.

    • So uh thanks for the warning. Also it’s interesting to note that plumbers seek out movies about plumbers!

      • HR, Human Remains professionals, have a whole suite of their own movies. The Human Centepede and Shallow Grave are a good start.

      • ErmingtonPlumbingMEMBER

        Ha ha,…..I was hooked before I realised the films main protagonist was a plumber.
        But it was a nice little bonus to find out he was.

    • every whistleblower I’ve ever seen interviewed wished they’d kept their mouth shut.

    • Russians are amazing people trapped in a sick system.
      And yes, it is no fun being a whistleblower anywhere.
      The powers that be close ranks against you.

      • mate give me one system that is not sick. ours here?? US’s?? even the Scandinavians struggle now – not as bad as us though.

      • @Nicola
        You have a point but at least in Australia the powers that be are not likely to have you killed for speaking out. Putin’s Russia on the other hand.

      • ErmingtonPlumbingMEMBER

        You’d love it Reusa.
        The corrupt rich property investors literally get away with murdering mooching and smooching plebs.

    • Oh Ahahahahahahahah!!!!!!

      Imagine having smelly foreign students hanging around and smoking…and even simply being in existence outside the doors of apartment buildings where wealthy people live! Oh the Horror. Why, then IT WOULD BE JUST LIKE EVERYWHERE ELSE IN THECOUNTRY so welcome to the 21st century you pack of worthless, arrogant self-entitled cnuts.

      I welcome the day! Bring on the fake educational institute, and the Chinese invaders students smoking their lung-busters and gibbering in Mandarin and hoiking their giant slimy green loogies all over the pavement outside the front door.

      What fabulous news, at last.

      • They loves the mass immigration to push up their property prices, but not the actuality of mass immigration.

      • Lmmao …. Oz has had massive immigration since anglophones spied untapped resources …..

  7. reusachtigeMEMBER

    Bailing out these suffering investors is the right thing to do. I think most people would agree

    • NelsonMuntzMEMBER

      Here here Reusa!
      If you have a go, you will get a go.
      It’s the Australian way.

      • These investors had a go, we don’t want to dicourage them from having more goes in the future. A bail out is only fair.

  8. We are working with a Dincel product in a two storey building and the certifier has just flagged it. Said you need a fire report because the product just fails the AS. They are happy to accept a fire engineered solution (just a $5,000 report saying it is ok) and have it installed but the problem is the Dincel is considered combustible and will be a blight on future insurance.

    • Ronin8317MEMBER

      Isn’t Dincel bring marketed and sold as non-combustible alternative to claddings?

  9. I still have not seen anything that tells if the inspectors who signed of on the cladding commited a crime or if it was totally legal. Where is there any information on that. A RC is well and good but surely it’s not needed to determine where the legal liability lies. This should be a straight forward matter of contract law. It seems to me the insurance companies for the inspectors is liable. The state government should be leading the charge to make the insurance companies pay up or remove their licence to operate.

  10. I’m with AngryMan on this one. An RC is probably needed to sort out what happened & future directions. But right now there is enough contract law etc to go through & hammer whoever should be hammered. Insurance company pay up & take whatever action you think necessary afterwards. RC might be just like bank/fire RC, not much happened, nothing is going to change.

  11. Do we really need a RC to tell us what happened? Govt took many, many bribes, and then repaid largesse by saying to a bunch of dodgy developers “hey you look like good blokes who can be trusted, we’ll let you self regulate”, and instead of this turning out well, said dodgy developers instead proceeded to throw up many, many shoddy buildings using poo quality construction materials, and then, to add insult to injury, sheathed them in cladding that will burn if you light the stove in your kitchen. If you haven’t been evacuated from your apartment because it is moving in a downward direction.

    Not much mystery as to what and where the failure points were in this, really.

    • You’re not wrong, but clearly we need an RC to tone down what you have just said, so the finger isn’t pointed at anyone or any organisation in particular because heaven forbid someone should be held accountable for this.
      An RC would basically put a nice PC/snowflake take on why this whole thing happened. There might be a few slaps on the wrist like Kent Henry received, but other than that, it’ll be business as usual.

  12. I don’t see why tax payers should pay to fix these properties, people have strata hitting them up with extra levies all the time to fix crap developers screwed up. It’s not the governments responsibility to fix private property.

    Developers should be paying to fix this mess, not tax payers.

    I’m sick of this privatise profits, socialise losses BS.

  13. A Royal Commission sure sorted out those nasty bankers and super funds. About as intimidating as being slapped with a three day old wet lettuce.