Building industry reluctant to back scheme

The building industry is reluctant to back a mandatory warranty scheme for new homes.

An amendment to the Building Act is before a parliamentary select committee, but critics say it lacks enough protection for consumers from leaky homes.

Registered Master Builders chief executive Warwick Quinn says a compulsory guarantee scheme in New South Wales collapsed, meaning the state was forced to manage and underwrite it.

He says instead, the builder should be required to disclose whether he has the financial backing to offer a guarantee.

Mr Quinn says this lets the consumer choose whether to take up a warranty or not.