Government promises to take over Teralba building site

THE state government has promised to take over a Teralba building site that was shut down after the head contractor, St Hilliers Construction Pty Ltd, went into voluntary administration last week.

And in a separate but similar case, the government has said it was ‘‘not appropriate’’ for taxpayers’ funds to ‘‘bail out’’ another troubled building company, Reed Constructions, which is part way through the Shortland to Sandgate section of the Newcastle bypass.

The Teralba job was one of a number across the state being done by St Hilliers, which had stepped in when a previous builder had been unable to finish them.

While the Department of Finance and Services says existing subcontractors have first priority back on all of the St Hilliers jobs to be restarted, a landscaper from the Teralba job says he is not certain he wants to return.

Matt Corfield of Creating Eden Landscapes said he lost $10,000 with the previous contractor and was owed nearly $7000 by St Hilliers.

‘‘They will want us to go back to work and then they’ll pay us but I think the government needs to pay out what’s owed before people go back,’’ Mr Corfield said.

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