Park Homes workers at Cambridge listen to union official Julian Cooke (black and red top). Picture: SAM ROSEWARNE
RED tape and a cumbersome planning system have been blamed for the collapse of a leading Tasmanian building company.
Park Homes went into receivership on Friday, putting more than 30 people out of work.
Owner Tony Park said his business had been plagued by planning approval delays, payroll tax increases and regulations burdening the sector for things such as energy efficiency and bushfire safety.
The Housing Industry Association warned action was needed to boost building activity and investment in the state.
"It's a sad indictment that yet another Tasmanian business has fallen over in this economic climate," HIA Tasmania executive director Stuart Clues said.
"Businesses will continue to fall over unless we make some changes.
"We need planning changes (and) we need to not have a system that discourages major investment in the state."
An emotional Mr Park said yesterday: "You can blame the world, but at the end of the day, the buck stops with me.
"It's embarrassing. I've tried my heart out, but I feel like I've just let people down."
Mr Park started Park Homes with his father in 1978.
He said the company owed $2.2 million to the bank, but had expected to make $4 million this year.
The company had assets worth $2.9 million.
But the National Australia Bank foreclosed on Friday, appointing interstate receivers McGrathNichol.
"I had a solution that would have almost had them paid out by about mid-April, but they didn't like that. They thought it was too long," Mr Park said.
Despite facing bankruptcy, Mr Park said his employees were his primary concern.
"It's sad for the blokes. Some of them have been with me 12, 15 years -- they're mates, not employees," he said.
But union officials said yesterday staff had been left in limbo, unable to apply for Federal Government assistance to recover entitlements or apply for Centrelink support, because they had not been officially released from their roles.
CFMEU Tasmania spokesman Julian Cooke said it appeared Park Homes was operated by "a web of companies".
"You could say a parent company has been put into liquidation and assets have been frozen," Mr Cooke said.
He said some staff were owed 12 weeks' long service leave in addition to last week's wages and entitlements.
Mr Park said talks were being held with the receiver to ensure homes under construction would be completed.
He said there was still a chance private third-party investment could keep the company going.
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