Joint Statement - Labor late to act weeks after Montego Homes collapse

Joint Statement – Labor late to act weeks after Montego Homes collapse

Evan Mulholland, Shadow Minister for Home Ownership and Housing Affordability

James Newbury, Shadow Minister for Planning

19 February 2024.

Weeks after the collapse of Montego Homes left over fifty Victorian homebuyers stranded, the Victorian Building Authority (VBA) has finally suspended the registration of the company’s nominee director.

Under existing Victorian legislation, no money, including deposit money, is payable under a domestic building contract before a suitable domestic building insurance policy has been issued.

Despite it being clear for weeks that Montego Homes had failed to take out building insurance, the Labor Government has only acted today.

The collapse of builders like Porter Davis and Montego Homes has revealed widespread non-compliance with Victoria’s building insurance requirements, a practice that continues to occur in a clear regulatory failure overseen by the Allan Government.

Shadow Minister for Home Ownership and Housing Affordability, Evan Mulholland, said: “We again call on the Premier to extend the Liquidated Builders Customer Support Payment Scheme for homebuilder insolvencies which occurred during the current financial year.

“Families impacted should be compensated and shouldn’t be left exposed by a Labor Government that refuses to act.”

Shadow Minister for Planning, James Newbury, said: “Jacinta Allan must explain why it has taken her Labor Government so long to act.

“By doing nothing to protect Victorians quickly, Labor is letting more and more homeowners get hurt. It’s about time the Victorian Building Authority stepped up and showed their enforcement teeth.”

James Newbury, Shadow Minister for Planning

Evan Mulholland, Shadow Minister for Home Ownership and Housing Affordability