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The NSW government has published Mr. Bruce Collins QC's report into construction insolvency in the territory. See here. The report is very thorough. I will it to readers to mull over the contents. One introductory passage stood out however in relation to the nature of insolvency. The report notes:
"One submission to the Inquiry suggested that, insolvency may be considered:
"…a therapeutic and necessary cleansing of bad risk in the market."
A harsh summation no doubt, of what might be considered the almost inevitable outcome of poor decision making by some in the building and construction industry. From its commencement, this Inquiry has made it clear that there can be no remedy applied through government action or reform, to the problems which arise from incompetence, inexperience or neglect by head contractors and subcontractors in the industry.
However there is a great deal that can be done to prevent and reduce insolvencies at
both levels in the sector as well as reducing the effects
of insolvency in the industry overall."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...