Collier Homes leaves a handful of homes unfinished as the industry makes desperate calls for no-interest loans

The collapse of Collier Homes has left seven unfinished homes, prompting calls for the State Government to finally provide the no-interest loans it has long promised struggling builders. The seven customers are no doubt in shock at the collapse of the 60-year-old award-winning company which was run by industry veteran Dario Amara. Mr Amara, a previous chief executive for major multinationals like John Holland, had $12 billion worth of previous works under his belt when he bought the Collier Homes brand in 2016, when it was in liquidation. But even with Mr Amara’s expertise, the company could not withstand the challenges of the Covid period and the State Government’s stimulus grants. Chairman of the Home Builders Action Group, Jason Janssen, said it showed the extent of challenges facing the sector. But he believes the collapse could have been avoided had the State Government provided no-interest loans it had promised builders back in January. “If the money was made available earlier, there is a very good possibility that Collier Homes could have traded through this and completed all those projects,” he said. Mr Janssen said Mr Amara and wife Susan had exhausted their personal savings to the tune of several hundred thousands dollars to bring the seven final homes close to completion, following 30 per cent rise in build costs since the pandemic hit. He said the State Government’s stimulus grants had added to industry cost pressures as builders scrambled for the already-low inventory of supplies. Commerce Minister Sue Ellery vowed the $10 million no-interest loans were set to roll out “in the next few weeks”. She said 40 applications had been made through the scheme, which provides builders with up to $300,000 to finish builds already near completion, but had been held up by banks. Despite the criticism from the HBAG, Ms Ellery said the loans were being issued sooner than anticipated. “It’s a significant amount of money and you would appreciate this is a no-interest loan,” she told radio 6PR. “We have to protect the taxpayer’s $10 million. We have to have all of the information, check the books of the builders applying for these funds and (ensure) that work is near completion. “I know it’s frustrating for those builders and probably more frustrating for the people whose homes are still not completed. But it is a significant investment. And we need to make sure that we check eligibility.” For it’s part, the State Government’s Building and Energy watchdog yesterday misunderstood the impact, mistakenly claiming “there are no home owners affected by it going into receivership.” The West Australian has confirmed seven customers are affected.