Article-Calls to overhaul TasBuild; Reform wanted over $250m fund lacking parliamentary oversight

Calls to overhaul TasBuild are mounting, with a peak housing body warning a quarter of a billion dollars is being managed without any parliamentary oversight.

TasBuild was established in 1997 to manage the Portable Long Service Fund for Tasmanian construction workers.

Employers are legally required to pay 2.5 per cent of ordinary pay into the fund, meaning TasBuild’s board made up of seven male directors now controls nearly $250m.

Housing Industry Association Tasmania executive director Benjamin Price has called for an urgent overhaul of TasBuild’s governance model, arguing the current model lacks necessary oversight.

He did not, however, make any allegation funds were being misused.

“What I’m saying is that the governance arrangements must be contemporary to ensure this significant investment is protected now and into the future,” Mr Price said.

“Every builder in this state pays this levy and not one of them can choose not to. When money is compulsory, the accountability has to be public and robust, and right now the Public Accounts Committee cannot even look at it.”

He called for the body to be reformed as a statutory authority.

“This is a 1997 structure running in 2026,” he said.

“Make it a statutory authority, with ministerial or Governor-in-Council appointments, fixed terms, appropriate industry representation and proper oversight by government and accountability to parliament.”

These concerns were echoed by independent MLC Ruth Forrest, who joined Mr Price in calling for legislative reform.

“There’s a large body of money being held by an entity with no public visibility or scrutiny,” she said.

“If you can build up such a reserve, then the conversations need to be had (about) what is the best way to do that, and that’s where with oversight and rigorous governance… those conversations can be (had) much more publicly.”

A government spokesperson said the government was receptive to concerns about TasBuild but reiterated it functioned independently as a private trustee company.

“Under current governance arrangements for TasBuild, the government and the parliament have no oversight and no role in appointment of directors or governance of TasBuild by the independent Board,” the spokesperson said.

“These are longstanding arrangements dating from the 1990s. The Government will consider any concerns raised regarding these governance arrangements.”

It comes after independent MLC Meg Webb raised concerns in parliament last week over TasBuild’s all-male board, saying the lack of gender equity reflected 1950s attitudes.

Government boards and committees are required to achieve and maintain equal representation of women.

Ms Forrest said the board should be skills-based, while Mr Price said the gender balance was reflective of a broader governance problem.