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Business

Coles shopper loses battle for compensation in court after slipping on lettuce

A Coles shopper has lost her court battle for compensation after she slipped on a piece of lettuce at the supermarket and claimed the fall caused her knee and spinal injuries.

Kanwaleen Bhelley claimed that she suffered a whole person impairment (WPI) of more than 5 per cent following the incident at a Coles store in the suburb Wyndham Vale in May 2020.

The Melbourne woman had told a medical panel that the lower back injury meant she experienced pain after driving for an hour and did not run out of “fear” of her knee and back becoming “painful”.

She said the spinal injuries had also “reduced her attendance at concerts, general socializing, and attendance at her temple, which requires long periods of sitting”, the court judgment noted.

She sought compensation from Coles after supplying a medical report from a sports physician. But the supermarket giant rejected the report and referred the matter to a medical panel who determined Ms Bhelley’s injuries did not meet the threshold required for compensation.

Instead, the panel found Ms Bhelley had suffered age-related degenerative changes to her spine and sacroiliac joints which was associated with rehabilitation treatment of her right knee.

“She can stand for about 10 minutes before she has to stretch her back,” the panel wrote in its report.

“She can walk for about 30 minutes, (but) after about 500m she notices mild right knee pain, so stops walking to sit or stand for about 10 minutes. She can traverse stairs without difficulty, using alternate stair treads for both ascending and descending, with no lower back or right knee issues.”

The panel also ruled her condition was stable.

The 43-year-old then lodged an appeal taking her case to Victoria’s Supreme Court, alleging the panel did not apply or misapplied the guidelines used to determine her impairment.

“Mrs Bhelley submitted that, absent such error, the panel would have determined that her degree of whole person impairment resulting from her spinal injury was 5 per cent, satisfying the significant injury threshold and in turn entitling her to claim non-economic loss damages, ” the judgment read.

But Judge Andrea Tsalamandris handed down her ruling on Friday finding the panel had not erred in its assessment and dismissed her appeal.

However, she acknowledged that Ms Bhelley could still experience pain or symptoms.

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Business

Aussie company collapses up to 50 per cent since April, Creditorwatch finds

It’s no secret there has been a “massive rise” in Australian companies collapsing but new findings show they have skyrocketed by a whopping 50 per cent since April.

The construction industry has faced a particular crisis with dozens of firms going under this year, but everything from billion dollar tech starts up to grocery delivery companies have become casualties of this “disturbing trend”.

Overall, companies going into external administration are up 46 per cent year-on-year, while court actions are up 54 per cent year-on-year, the latest data from credit reporting agency CreditorWatch found.

The huge jump has been blamed on interest rate rises causing “cheap money” to dry up, while spooked investors are pulling back on spending their cash on start-ups as valuations have taken a dramatic dive, with a slew of staff cuts battering the sector .

Meanwhile many businesses are already suffering depleted cash reserves as a result of the pandemic and the Australian Taxation Office (ATO) has ramped up its debt collection, according to the agency.

‘Ramping up legal action’

CreditorWatch has issued a chilling warning that the rise in business insolvencies will continue this year as multiple impacts batter the economy including ongoing supply chain issues, declining consumer confidence, rising interest rates, inflation and labor shortages.

CreditorWatch chief executive Patrick Coghlan said the hands-off approach to debt collection adopted by the ATO and many lenders during the pandemic is clearly over.

“The massive rise in external administrations is certainly a disturbing trend – now up 50 per cent since April. Our data shows that court actions are back to pre-Covid levels and the ATO has also stated that it is ramping up legal action for outstanding debts,” he said.

“With business and consumer confidence declining and inflation and interest rates on the rise, this doesn’t bode well for businesses, particularly small and medium enterprises whose cash reserves were depleted during the pandemic and are now operating on much tighter margins.”

No longer ‘awash with cash’

Aussie start-ups have been particularly hard hit, with the casualties piling up in the tech sector.

The latest was an Australian tech company called Metigy, which left staff “shell-shocked” by its sudden collapse last week, after it planned to raise money with a valuation of $1 billion.

Businesses that are trying to raise money for growth are particularly at risk in the current environment, added CreditorWatch chief economist Anneke Thompson.

“When interest rates were low and the world was awash with cash, investors were hungry for investment opportunities, and willing to move up the risk curve to find good returns,” she said.

“Now that cash is being consumed by ever-increasing prices and debt costs a lot more, the appetite for risk is dropping.

“Start-up businesses or those in the growth phase are always considered riskier. We have already seen this phenomenon hit the tech sector, and many well-known companies are being repriced to reflect this.”

Other recently failed Australian start-ups include grocery delivery service Send, which went into liquidation at the end of May, after the company spent $11 million in eight months to stay afloat.

There was also a Victorian food delivery company that styled itself as a rival to UberEats and Deliveroo that collapsed in July as it became unprofitable, despite making more than $6 million worth of deliveries since it launched in 2017 and had 18,000 customers.

Meanwhile Australia’s first ever neobank founded in 2017, Volt Bank, went under last month with 140 staff losing their jobs, while 6000 customers were told to urgently withdraw their funds.

A venture capital firm issued a sobering message about the state of Australia’s start-up industry, warning that more new companies would go bust and pulling back on funding as a result.

CreditorWatch also identified five regions where businesses are most at risk of going under with the suburbs of Merrylands, Canterbury and Auburn in NSW on the list, alongside Surfers Paradise and Ormeau in Queensland.

Construction collapses to continue

After four consecutive months of increases to interest rates and inflation continuing to rise, it is now clear that a slowdown in demand in many industries is inevitable, added Ms Thompson.

She said construction companies will continue to be impacted by late payments and reduced demand, particularly smaller operators.

The most recent company impacted was Melbourne-based Blint Builder which collapsed this week with approximately $1 million in outstanding debt owed to 50 creditors, according to the liquidators.

It joined smaller operators like Hotondo Homes Horsham, which was based in Victoria and a franchisee of a national construction firm – which collapsed in July affecting 11 homeowners with $1.2 million in outstanding debt.

It was the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Others include two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, which went into liquidation earlier this year.

There was also Norris Construction Group, which was in Geelong, collapsed in March with $27 million in debt. It owes $3.2 million to around 140 staff that it is unlikely to be able to repay, according to the liquidator’s report.

Meanwhile, Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Other casualties this year include Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

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Business

Melbourne construction company Blint Builders collapses owing $1m to 50 creditors

A Melbourne-based builder has collapsed with approximately $1 million in outstanding debt owed to 50 creditors, according to the liquidators.

The construction firm called Blint Builders went into voluntary liquidation after news.com.au revealed a number of homeowners were experiencing a “horrendous” amount of stress as they had poured hundreds of thousands of dollars into half finished homes that had sat untouched for months.

Cliff Sanderson from insolvency firm Dissolve has been appointed to handle Blint Builder’s liquidation.

He said Blint’s owner had told him that the company had “ceased to trade”.

“In our conversations with him, which are yet to be verified, he told us there are 50 creditors with approximately $1 million in debt and I expect that number to go up and the money will go up in excess of that,” he told news. com.au.

‘Horrifying strain’

Mr Sanderson said he was also told that “half a dozen” homeowners were impacted by Blint’s demise, but was waiting on more information to be supplied by the builder.

One family impacted are Dean and Nolle Fuller, who have five children between them, and have already shelled out $480,000 to Blint, since signing on in January.

The couple had demolished their existing home last November and had engaged Blint Builders to build two townhouses for $1.5 million, due to be delivered early next year.

No work has been done on the site since June and it has been broken into after construction stopped leaving it a “mess”, Mr Fuller said.

“In that time, we have had two lots of vandalizing and trespassing and damage caused to our property, which has been lodged with police,” Mr Fuller told news.com.au.

“We have had a truck back up and dump three to four square meters of rubble and waste material on the property and the truck also smashed the gates down.

“Recently someone turned up and stole the electrical meter box within the property.”

The project manager said the experience had caused an “unbelievable amount of stress and anxiety”.

Another family who are under “horrendous strain” are Tony and Jo Firman and their two children, who are building a home specially designed for her as she has multiple sclerosis.

The couple said they have paid $1.14 million so far to the builder and the house is at lock up stage but no work has happened since early June, according to Mr Firman.

“Even with the full insurance payout it might not be enough money. We skimped and saved and borrowed quite a substantial amount of money. We are worried we won’t make enough money to repay the loan and be able to live,” Mr Firman told news.com.au earlier this week.

Landlord owed $14k

Blint Builder’s office in the Melbourne suburb of Highett was also seized by the landlord.

Legal documents posted on the front door show the landlord has executed their right to re-entry, terminating the lease and demanding all property be removed and the keys be returned.

The legal notice also revealed that Blint Builders owe the landlord close to $14,000 in unpaid rent and rates.

Mr Sanderson said statistically it was rare for a dividend to be paid to unsecured creditors from a home builder as they “rarely have any assets”.

“Recently released ASIC corporate insolvency statistics reveal that the construction sector accounted for 28 per cent of all insolvencies for the June 2022 quarter,” he said.

“Construction is the largest sector in the statistics, second is accommodation and food with 16 per cent of the total, while 28 per cent is the highest ever percentage of total insolvencies for construction, equal with the December 2021 quarter.

“On average going back to 2013, construction makes up 19 per cent of total insolvencies.”

construction crisis

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies have been particularly hard hit by the crisis.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Norris Construction Group, which was in Geelong, collapsed in March with $27 million in debt. It owes $3.2 million to around 140 staff that it is unlikely to be able to repay, according to the liquidator’s report.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving at least 30 homes in limbo.

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Business

Kyneton residents consider court action to fight development of McDonald’s, Bunnings complex

Macedon Ranges residents are considering Supreme Court action following a state planning tribunal decision to overturn a council vote to halt a two-part commercial development.

A Kyneton development for a McDonald’s fast-food restaurant, another restaurant, Bunnings and a 24-hour service station was approved by the Victorian Civil and Administrative Tribunal (VCAT) last week after the applicant decided to challenge the council’s decision and the conditions imposed.

Susan McNab is one of the leaders of the fight against the development and said residents were disappointed by the court’s actions.

She said the group would look at viable options to counter the decision, but accepted that a loss in the Supreme Court would be costly.

an architectural drawing of a commercial development
The development will carry a McDonalds restaurant, another convenience restaurant, a Bunnings trade center, and a petrol station. (Supplied / VCAT)

“Naturally, we don’t feel the decision is to the benefit of Kyneton. That part of the town is the main access to nearby reserves and people often go out that way climbing and for classic car rallies and cycling,” she said.

“It’s difficult for many residents to not be considered at VCAT.

“It’s been about the economics of the matter. The council said that area would be developed at some point, but this particular style of development works against Kyneton’s character.”

Big brands coming down the highway

The decision almost confirms the introduction of commercial development in Kyneton, which one community group has labeled the ‘tide of overdevelopment’. Residents fear the big brands will take away the small country charm that the town is known for, with small businesses and well-known eateries losing out.

“The proposal will not detract from the rural character of the Shire. The proposal will reinforce the rural character of the Shire by its location [in a commercial zone] within the protected settlement boundary; [and the] containment of its impacts within the subject land,” VCAT’s decision said.

A woman holds a cardboard sign in each hand.  One says 'protect cultural land' and the other says 'support local business'
Lenka Thompson started the Keep Kyneton Country group to fight the proposed development.(Supplied: Lenka Thompson)

The decision by VCAT has caused a stir on social media after attracting hundreds of submissions airing concerns about traffic and safety, and the effect the development could have on the nearby environment and local economy.

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Categories
Business

Kyneton residents consider court action to fight development of McDonald’s, Bunnings complex

Macedon Ranges residents are considering Supreme Court action following a state planning tribunal decision to overturn a council vote to halt a two-part commercial development.

A Kyneton development for a McDonald’s fast-food restaurant, another restaurant, Bunnings and a 24-hour service station was approved by the Victorian Civil and Administrative Tribunal (VCAT) last week after the applicant decided to challenge the council’s decision and the conditions imposed.

Susan McNab is one of the leaders of the fight against the development and said residents were disappointed by the court’s actions.

She said the group would look at viable options to counter the decision, but accepted that a loss in the Supreme Court would be costly.

an architectural drawing of a commercial development
The development will carry a McDonalds restaurant, another convenience restaurant, a Bunnings trade center, and a petrol station. (Supplied / VCAT)

“Naturally, we don’t feel the decision is to the benefit of Kyneton. That part of the town is the main access to nearby reserves and people often go out that way climbing and for classic car rallies and cycling,” she said.

“It’s difficult for many residents to not be considered at VCAT.

“It’s been about the economics of the matter. The council said that area would be developed at some point, but this particular style of development works against Kyneton’s character.”

Big brands coming down the highway

The decision almost confirms the introduction of commercial development in Kyneton, which one community group has labeled the ‘tide of overdevelopment’. Residents fear the big brands will take away the small country charm that the town is known for, with small businesses and well-known eateries losing out.

“The proposal will not detract from the rural character of the Shire. The proposal will reinforce the rural character of the Shire by its location [in a commercial zone] within the protected settlement boundary; [and the] containment of its impacts within the subject land,” VCAT’s decision said.

A woman holds a cardboard sign in each hand.  One says 'protect cultural land' and the other says 'support local business'
Lenka Thompson started the Keep Kyneton Country group to fight the proposed development.(Supplied: Lenka Thompson)

The decision by VCAT has caused a stir on social media after attracting hundreds of submissions airing concerns about traffic and safety, and the effect the development could have on the nearby environment and local economy.

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Business

Qld Hutchinson building boss warns more construction companies will fold

One of Australia’s biggest building bosses has issued a sober warning about the state of the construction industry with expectations many more businesses will collapse in coming months.

The chairman of Queensland construction company Hutchinson Builders, Scott Hutchinson, put it bluntly.

“I bet more builders go broke in Australia,” he told Australian Financial Review.

Mr Hutchinson blamed the way Australia’s construction system worked, with most of the onus placed on the builders themselves rather than developers.

He explained how developers tried to attract customers to their projects with competitive deals with little understanding of the very tight margins that builders had to fulfill to turn a profit.

Construction companies mostly have to oblige these developers as there is no shortage of builders but there are limited projects out there, Mr Hutchinson said.

Developers also can take on clients with very little financial stake while builders bore the brunt of the risk.

They [builders] will roll the dice with their fingers crossed every day of the week,” he said.

There’s no denying it, Australia’s building industry is in crisis; many companies have gone into liquidation so far this year amid rising costs for construction materials but also being stuck in fixed contracts, driving them out of business.

Two months ago, news.com.au spoke to Russ Stephens, co-founder of the Association of Professional Builders (APB), who warned that the industry was in dire straits with as much as 80 per cent of building firms haemorrhaging money.

More than half of the estimated 12,000 construction companies in the country are reportedly trading at a loss, with many on the brink of collapse.

And those who work in the industry are having regular mental breakdowns and crying to colleagues and family members as the pressure to survive mounts.

“[Building firms are] losing huge amounts of money,” Mr Stephens said.

“Eighty per cent of builders in Australia have lost money in the last 12 months. That’s horrific,” he said.

He said around 50 per cent of building companies wouldn’t be able to pay back all their debts at once if creditors asked for their money back at the same time.

“About 25 to 30 per cent [of these companies] can’t pay their bills on time,” he said.

An industry insider told news.com.au earlier this year that half of Australia’s building companies are on the brink of collapse as they trade insolvent.

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies in particular have been hit hard.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving 44 homes in limbo.

News.com.au also raised questions about Sydney-based Ajit Constructions on Thursday after the builder hadn’t commenced construction for months, cleared up its offices without telling customers where it was going and disconnected its phone line.

There are between 10,000 to 12,000 residential building companies in Australia undertaking new homes or large renovation projects, a figure estimated by the APB.

A healthy construction industry is vital to a strong economy and ongoing growth, with the sector accounting for the employment of almost 9 per cent of Australian workers and 7.5 per cent of Australia’s GDP, according to CreditorWatch.

– with Sarah Sharples

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Categories
US

Biden issues second executive order to protect abortion access

President Biden on Wednesday issued an executive order to protect people’s ability to travel out of state to access abortion.

The big pictures: This is the second executive order the president has issued to preserve abortion access after the Supreme Court’s ruling overturning Roe v. Wade.

State of play: Biden signed the executive order during the first meeting of the White House’s Task Force on Reproductive Health Care, which is focused on coordinating the federal government’s efforts on reproductive health.

Details: The executive order directs the Department of Health and Human Services to “consider action to advance access” to reproductive health services, including through Medicaid for patients who travel out of state.

  • Biden is also asking HHS Secretary Xavier Becerra to consider “all appropriate actions” to ensure that health providers follow federal nondiscrimination laws so that people can “receive medically necessary care without delay.”
  • Becerra must also “evaluate and improve research, data collection, and data analysis efforts” on maternal health.

What he’s saying: Biden said this executive order will respond to “the health care crisis that has unfolded since the Supreme Court overturned Roe and that women are facing all across America.”

  • The order will “help safeguard access to health care, including the right to choose and contraception. [It] promotes safety and security of clinics, patients and providers, and protect patients’ privacy and access to accurate information.”
  • “I believe Roe got it right. It’s been the law for close to 50 years. And I committed to the American people that we are doing everything in our power safeguard access to health care, including the right to choose that women had under Roe v Wade, which was ripped away by this extreme court.”

Zoom out: Although the Biden administration has taken several steps to respond to the Supreme Court ruling, the executive branch’s role when it comes to protecting abortion care is limited without congressional action.

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US

Teen pro-life activist allegedly punched in the face while canvassing

A Kansas woman allegedly attacked a teenage pro-life canvasser when the student knocked on her door Sunday.

The student, Grace Hartsock, was going door-to-door to turn out Kansas voters for a Tuesday referendum on abortion law. The incident occurred when she approached a home in Leawood, according to Students for Life, the organization with which Hartsock was volunteering.

Hartsock says a woman answered the door and politely stated she was not interested when she learned why Hartsock had knocked.

“No, I’m sorry, I don’t think you want to talk to us,” the woman said.

Hartsock turned to leave when another voice, also a woman, came from farther inside the house yelling and cursing.

“Don’t apologize to her, mom,” the woman yelled, according to SFL.

The second woman, whose identity is unknown, then reportedly followed Hartsock out of the house while berating her. SFL says the woman shoved Hartsock in the chest and began striking her head with closed fists.

Hartsock weathered the blows until the woman’s mother got the daughter to stop. The woman continued yelling, however, telling Hartsock, “I hope you get raped,” and “I hope you get run over by a car,” SFL says.

The student, Grace Hartsock, was canvassing door-to-door to turn out Kansas voters for a referendum on abortion law.
The student, Grace Hartsock, was canvassing door-to-door to turn out Kansas voters for a referendum on abortion law.
studentsforlifeaction/Facebook

The teenager was able to capture the final moments of the encounter with her phone, showing the woman back away toward the house while still hurling expletives.

SFL says Hartsock has filed a complaint to the Leewood Police Department regarding the incident. Hartsock declined an interview with Fox News Digital.

“Since she was struck, the student is experiencing headaches and body soreness, and Students for Life Action has connected her with an attorney. She and Students for Life Action are considering a legal response.” SFL spokeswoman Kristi Hamrick told Fox.

Kansas residents are voting on an amendment to the state constitution that would allow state lawmakers to regulate abortion access. The state will be the first in the country to hold a vote on abortion access since the Supreme Court overturned Roe v. Wade in late June.

Grace Hartsock was able to capture the final moments of the confrontation.
Grace Hartsock was able to capture the final moments of the confrontation.
studentsforlifeaction/Facebook

The “Value Them Both” amendment would “affirm there is no Kansas constitutional right to abortion or to require the government funding of abortion, and would reserve to the people of Kansas, through their elected state legislators, the right to pass laws to regulate abortion , including, but not limited to, in circumstances of pregnancy resulting from rape or incest, or when necessary to save the life of the mother.”

The referendum comes roughly three years after the state Supreme Court ruled that the Kansas constitution protects the right to an abortion in 2019.

Kansas is a heavily Republican state, and the legislature would be likely to pass restrictions on abortion soon after the referendum if the amendment succeeds. It was the GOP supermajority in the state legislature that ensured the referendum would happen following the 2019 ruling and the fall of Roe.

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Entertainment

Prince Harry reportedly snubbed by Prince Charles over refusing to share details of upcoming memoir

Prince Harry was reportedly ‘snubbed’ by his father Prince Charles after he refused to discuss details of his upcoming memoir.

The memoir ie yet to be released but it is already causing tensions among senior members of the Royal Family.

The icy father-and-son moment occurred after the Duke of Sussex and his wife, Meghan Markle, stopped by to visit Windsor Castle on the way to the Invictus Games in Holland earlier this year.

According to royal expert Neil Sean, a source told him that “Harry refused to talk about what he put down in his book” during their brief meeting.

Stay up to date with the latest news on the British Royals with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends October 31, 2022 >

It reportedly resulted in Prince Charles brutally “icing” his son and stopping the meeting after just 10 minutes.

“We know Prince Charles spent very little time with his son Prince Harry,” Mr Sean said, according to The Daily Express.

“Charles wanted to have a one-to-one chat, but that ended up being a very brief meeting.

“According to a very good source, allegedly, Prince Harry refused to detail anything about his forthcoming memoir to Prince Charles.”

“The big sticking point this year, being the Queen’s Platinum Jubilee and the 75th year of Camilla, the Duchess of Cornwall, Charles doesn’t want any negativity.

“According to that good source, Harry refused to talk about what he put down in his book and how this will pan out.

“It has been pushed back, and Charles will have to wait and see like the rest of us.”

Last year, Harry announced that he’s writing a tell-all book about his life.

In a statement, the prince said he was excited to share an account of his life that’s “accurate and wholly truthful”.

“I’m writing this not as the Prince I was born but as the man I have become,” he said.

“I’ve worn many hats over the years, both literally and figuratively, and my hope is that in telling my story – the highs and lows, the mistakes, the lessons learned – I can help show that no matter where we come from, we have more in common than we think.

“I’m deeply grateful for the opportunity to share what I’ve learned over the course of my life so far and excited for people to read a firsthand account of my life that’s accurate and wholly truthful.”

– with The Sun

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Business

Geelong building company Norris Construction Group collapses owing $27m

A collapsed Victorian construction company has $27 million in debt and owes $3.2 million to around 140 staff that it is unlikely to be able to repay, according to the liquidator’s report which revealed what went wrong.

The Geelong-based company called Norris Construction Group, which included seven associated companies, went under in March with KordaMentha appointed to handle the liquidation.

Its report, which was filed with the Australian Securities and Investments Commission, revealed the range of reasons for the company’s failure.

It included the “misprising of projects” and a “crisis of confidence” experienced by the business during lockdowns in Victoria between March and October 2020 resulting in projects being tendered at “very low prices”.

This resulted in “heavy losses” on a very large number of projects, the report to creditor’s said.

It also outlined “cultural issues amongst the executive team leading to staff losses and staff turnover” as well as hiring new staff on “high remuneration packages”.

The pandemic also contributed to the company’s demise, as well as “noncompliance” with lodging statements and returns with the ATO and unpaid taxes, alongside “insufficient working capital” to meet its short term obligations.

The company had completed work on the Manufutures hub at Deakin University and the Marngoneet and Chisholm Road prisons and worked across Melbourne and southwest Victoria.

Millions owed to employees

From the overall group, 235 former employees are owed $4 million in wages and entitlements but will have to rely on the federal government’s Fair Entitlements Guarantee (FEG) to get their money back.

However the scheme, which is available for employees of companies that become insolvent, caps back pay and does not pay superannuation.

Aside from the $3.2 million owed to employees of Norris Construction Group, there was between $187,000 and $277,000 owed to 235 staff from the overall group including wages, redundancy payouts and superannuation.

But KordaMentha partner Andrew Knight said four out of the five companies that employed staff had “insufficient” assets to pay back the money owed.

“We understand that for four of the five employing entities, FEG has processed and paid over 90 per cent of the employee claims,” he said.

“FEG is still working on claims in the fifth entity, Norris Construction Group, which are more complex due to the quantity of claims as well as the relevant Award which applies to these employees. We estimate the majority of these claims will be resolved and paid within the next month.

“Unfortunately, there are some entitlements that are not covered by FEG, for example superannuation and amounts in excess of caps, and payment of those are dependent on the outcome of the liquidations.”

While an auction of the company equipment and assets in May raised more than $17 million, and is expected to paid to Westpac, the bank will still suffer a “shortfall”, said Mr Knight as its owed $22 million.

The ATO also has an outstanding debt of $5 million, the report revealed.

However, the ATO debt was unlikely to be repaid, Mr Knight added.

“The amount due to the ATO is unsecured, and given the likely shortfall to the employees and the secured creditor, it’s unlikely unsecured creditors including the ATO will be paid a dividend,” he said.

The creditor’s report also flagged it was investigating any potential offenses of director’s duties including trading while insolvent.

construction crisis

Overall, the construction industry has been plagued with a spate of collapses caused by a perfect storm of supply chain disruptions, skilled labor shortages, skyrocketing costs of materials and logistics, and extreme weather events.

Earlier this year, two major Australian construction companies, Gold Coast-based Condev and industry giant Probuild, went into liquidation.

Victorian construction companies have been particularly sensitive to the crisis.

Two building companies from Victoria were casualties of the crisis having gone into liquidation at the end of June, with one homeowner having forked out $300,000 for a now half-built house.

Then there have been smaller operators like Hotondo Homes Horsham, which was also based in Victoria and a franchisee of a national construction firm – which collapsed earlier this month affecting 11 homeowners with $1.2 million in outstanding debt.

It is the second Hotondo Homes franchisee to go under this year, with its Hobart branch collapsing in January owing $1.3 million to creditors, according to a report from liquidator Revive Financial.

Snowdon Developments was ordered into liquidation by the Supreme Court with 52 staff members, 550 homes and more than 250 creditors owed just under $18 million, although it was partially bought out less than 24 hours after going bust.

Others joined the list too including Inside Out Construction, Solido Builders, Waterford Homes, Affordable Modular Homes and Statement Builders.

The most recent collapse was NSW building company Willoughby Homes, which went into voluntary administration last week, leaving at least 30 homes in limbo.

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