Ms KATELIN McINERNEY (Kiama) (15:34): My question is addressed to the Minister for Better Regulation and Fair Trading. Will the Minister update the House on how the Minns Labor Government is introducing long-term protections against defects for apartment owners?
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (15:34): I thank the Member for Kiama for her question. She is a tireless and strong advocate for quality apartment living for people in her community. After all, apartment living is key to the housing solution for New South Wales. Last week I had the privilege of introducing the latest measure in the Minns Labor Government's plan to make apartment living better for the people of New South Wales. We are turning the 10-year decennial liability insurance [DLI] product for apartment living into a reality. For so many of us, our homes are the places we live and the biggest investment we will make in our lifetime. This Government is absolutely focused on ensuring that apartment buildings are constructed to the highest quality standard and that consumers are protected if defects emerge.
Quality and quantity of housing must go hand in hand. The DLI product will support the great work of the Minister for Planning and Public Spaces and his Transport Oriented Development strategy to ensure that we have high-quality apartment living across this State. The people of New South Wales deserve to live in quality housing in every corner of our State. While I am on the story of housing, members would clearly recollect the saga of Mascot Towers. It lasted for over five years and just as many Coalition Ministers. The $25 million in emergency payments were all on the public purse, and there was no end in sight for residents and no real solutions offered. Thankfully for those residents, and for New South Wales taxpayers, the Minns Labor Government acted decisively. After five long years of uncertainty, those residents were able to move on thanks to a solution we provided.
I am pleased to share that this Government is acting to make sure home owners are protected if defects emerge. When the people of New South Wales are making their biggest investment, they should be entitled to have the utmost confidence that the apartment is built to the highest quality standard. The Government has introduced an amending bill that will enable 10-year insurance products that provide rigorous consumer protections to come on to the market. DLIs will be accepted as a substitute for the strata bond developers currently pay. Evidence shows that defects in new buildings emerge at around the five- to six-year mark, but the current developer bond only protects buildings for two years. As members can see, the maths does not add up. Defects occur after the coverage expires. Under new DLI policies, apartment owners can rest easy knowing that major structural defects to their apartment block that share common property will be covered when it matters most. [Extension of time]
The SPEAKER: Order! There is too much audible conversation in the Chamber. The member for Upper Hunter will come to order. Members will calm down.
Mr ANOULACK CHANTHIVONG: Additionally, these products are insured on a first-resort basis, cutting down the time from when defects are first identified to when they are actually resolved. These DLI policies are attached to the building, not the builder. Importantly, this protects owners from circumstances where a builder is no longer trading or is phoenixing. If the substantial increase in consumer protection is not enough, DLI products also provide three clear wins for developers and builders. Firstly, the additional oversight of an insurer means there is an extra rigorous process to make sure that buildings are of a higher quality standard. Ensuring that fewer defects materialise reduces the need for remediation costs. Secondly, DLI products signal that a building can be trusted by apartment owners. Thirdly, as more products come on the market, greater competition will lead to lower costs for the building industry. Higher quality, greater confidence and lower costs—what a triple win for the industry.
The dramatic benefits of DLI for both apartment owners and builders go hand in glove with the Minns Labor Government's vision for high‑density housing across New South Wales. The longer term protections for owners restore trust in apartment living when it is needed the most and will lighten the load on the developers and builders who are building homes for our future. Homeowners will be better off; developers and builders will be better off. The Minns Labor Government is backing more high‑quality apartments and more security for apartment owners. The only question left is whether members opposite will support the Government in building a better New South Wales for the people of this State.
