Photo: ADAM WRIGHT
THE forgotten victims of the Beechwood Homes collapse, many of Beechwood’s contractors and sub-contractors face the prospect of losing their own homes in the wake of crippling debts.
Plumber Gary McGuire from Culburra Beach said Beechwood “got me for about $50,000”, forcing him to lay off two apprentices.
Plasterer Peter Pearce from Nowra Hill was owed between $50,000 and $100,000 when Beechwood went into receivership, and said he knew of others owed more than $100,000.
“You’re never going to make up what you’ve lost,” he said.
“We won’t get paid for what we’re owed,” with the debt covering wages that had to be paid to staff, and materials he had supplied, which also still had to be paid for.
Mr Pearce employed five young workers, all of whom had families and had bought homes, and said he was trying his best to give his staff work.
But at a time when the NSW housing industry had slumped to its lowest level in decades, work was not easy to find, he said.
“These people could lose their homes,” he added.
“Our houses are on the line as well.”
Mr McGuire said Beechwood’s collapse had “sent us all into poverty”.
“We haven’t had a cheque for seven or eight weeks, we’re doing it tough.”
Losses of about $50,000 to Beechwood had set Mr McGuire back “about three years”, but he hoped he would be able to survive the loss.
“You’ve just got to work your way out of it,” he said.
At the age of 50, Mr McGuire said he had a strong financial footing and little debt, but, “I’d hate to be young and starting out with a big debt at the moment.”
Mr McGuire is expecting a large number of Beechwood’s contractors and sub-contractors to meet in Nowra next week and call for greater regulation to ensure similar problems were not repeated in the future.
There is even talk of a rally, which Mr McGuire predicted would be “The biggest thing to hit the building trade in decades.”
Brian Aulsebrook from South Coast Timber Supply said contractors and sub-contractors needed better protection, because Beechwood’s clients would all have their homes built eventually, and the staff would all be paid, but the unsecured creditors were being treated “shabbily” and would never see the money they were owed.
Mr Aulsebrook said he was owed “a substantial amount” by what he described as “the biggest home building collapse I’ve seen in NSW”.
“The only way we can handle it is through money that we’ve put aside over the years,” he added.
“It affects us very badly.”
Not being paid for couple a couple of months of frames and trusses was “going to hurt us, but it’s not going to hurt us to the point where we’re looking for receivers,” Mr Aulsebrook said.