In Business

South Australia Shadow Minister for Economic and Regional Development Martin Hamilton-Smith

McCracken Collapse Wake Up Call For Labor

Victor P Taffa

The trading halt of Adelaide builder McCracken Homes is another wake up call to Premier and Treasurer Jay Weatherill that more urgent action must be taken to fix the economy.

“McCracken Homes have stopped work, leaving homes unfinished, sub-contractors out of pocket and home owners uncertain about the future.” Shadow Minister for Economic and Regional Development Martin Hamilton-Smith said.

“At least one contractor has told me he stands to lose $55,000 risking the business, his six employees and forcing him to look at selling his property and vehicles to make ends meet.”

“The full list of creditors will not be known until an administrator is appointed, a move expected to terminate at least 13 jobs at McCracken and others who have been engaged by the builder as sub-contractors and trades.”

“In July last year, one of the largest civil engineering firms in Adelaide, ADCIV, collapsed into administration with 100 jobs at risk, just one week after McCracken subsidiary Red Ochre collapsed with more than $1 Million in debt. The Hastie Group also collapsed in 2012.”

“The owners of McCracken, Mr. Siciliano and Mr. Tripodi, are also directors of Adelaide Prestige Homes and Quick Frame Steel. It is uncertain what impact the McCracken development will have on these related companies.”

“My heart sank when I received calls from sub-contractors about this last Friday.”

“Businesses depend on sales and income. Mr. Weatherill needs to explain why population growth, housing loan finance and investor sentiment have collapsed under his leadership.”

“Businesses must keep their costs down. Labor created problems that have contributed to these collapses including the highest business tax regime in the nation. This is pushing companies under.”

“Land availability and planning issues are also a factor. Mr. Weatherill must accept responsibility and find solutions.” Mr. Hamilton-Smith said.

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