BER Judicial Inquiry needed

The Gillard Government must investigate how their disastrous school stimulus package has led to a string of bankruptcies leaving small businesses and contractors out of pocket, Christopher Pyne, Shadow Minister for Education said today.

"This $16.2 billion programme was meant to stimulate the economy and create jobs, but examples in the media today show it has sent some businesses broke, resulting in job losses," Mr Pyne said.

A recovery specialist in New South Wales who is trying to track $1 million owed to contractors and tradies is quoted as saying that 'the BER has left a trail of destruction.'

With billions lost due to price gouging and inflated management fees, it is astonishing that a stimulus package could also result in bankruptcies and job losses.

There have been reports of problems with contractors awaiting payments in other states, including South Australia and Western Australia.

"The Government has refused to launch a full judicial inquiry into the BER, which would have the power to subpoena documents and summon witnesses, but in the light of this further damning evidence the Government must reconsider immediately," Mr Pyne said.

June 20, 2011

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