Builders and their customers across Australia, who have been hurting thanks to the ill-judged last resort Builders Warranty Insurance scheme will now have an opportunity to publicly air their concerns and hopefully find a better solution, after the Greens successfully moved to refer the issue to the Senate Economics Committee.

Senator Milne said "Builders' Warranty Insurance is supposed to protect consumers for non-completion or defects in the project. But the changes made to the system in the aftermath of the HIH collapse in 2001, making the insurance payable only in the last resort where a builder dies, disappears or goes bankrupt, have created a trail of trauma and hurt across the country.

"With housing affordability high on the agenda, the problems caused for builders and their customers across Australia by Builders' Warranty Insurance need to be urgently addressed in order to clear one of the bottlenecks to fast, cheap building of new stock."

Senator Milne's referral reads as follows:

That the following matter be referred to the Economics Committee for investigation and report by May 2008;
Australia's mandatory Last Resort Home Warranty Insurance scheme including,
a) The appropriateness and effectiveness of the current mandatory privatised last resort Builders Warranty Insurance scheme in providing appropriate consumer protection and industry management.
b) The reasons for and consequences of the ministerial decisions relating to the removal of consumer protection provisions in respect of Corporations Regulation 7.1.12(2).
c) The ramifications for the future supply of this insurance product following the draft recommendations from the productivity commission report released in December 2007.
d) Any potential reforms and their costs and benefits which may lead to appropriate consumer and builder protection and improved housing affordability.
e) Any related matters

Senator Milne said "I am delighted to have been able to bring this issue to public scrutiny and help achieve a better outcome through the Senate Committee process."