Some Sublime collapse victims finally get a payout

The news some victims of the Sublime Constructions and Development collapse have already received Home Warranty Insurance payouts following QBE's belated decision to honour its policy certificates last Wednesday is as welcome as it is overdue.

That said, it does not mark the end to a saga that raised serious questions about the integrity of the ACT's statutory home warranty insurance and highlighted an apparent reluctance by government agencies to back consumers when their pursuit of the Australian dream goes sour.

The collapse of Sublime, and its drawn out aftermath, has also focused attention on the unfortunate practice by some builders of using contractors as "lines of credit" who can be strung out indefinitely, and the domino effect company collapses have on other businesses.

Issues have also emerged over the ability of building companies to trade while insolvent for long periods and an apparent disconnect between what the public expects of bodies such as the Environment and Planning Directorate and what the staff believe they should do.

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A common refrain, voiced by almost every individual caught out by one of the many building company collapses in the territory in the last four years is that when they turned to the EPD, Fair Trading or the police for assistance they were shunted from pillar to post.

That was certainly the experience of the up to 13 Sublime clients left high and dry when the firm failed with debts estimated at about $4.5 million in February.

When one Sublime client went to the Environment and Planning Directorate for assistance she was told "(your) problem is commercial in nature" and "not within the remit of (EPD's) construction occupations registrar".

On being referred to Fair Trading she was told it was a construction matter and she had to go back to the EPD.

Then, on referring the matter to the police, she was told the complaint would be difficult and time consuming to investigate and was advised to consider private legal action she could ill afford.

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Some Sublime collapse victims finally get a payout