18 Jun 2009

Call to protect clients' deposits for building work

12:05 pm on 18 June 2009

A Christchurch businessman is calling for legislation to protect people losing cash deposits to builders for work still to be done.

Mortgage broker Mike Pero says many people have lost money to struggling builders who have taken cash deposits they have used to pay for previous debts and never finished the work.

Mr Pero says the Government needs to consider creating legislation making it compulsory for money to be held in a separate account until building work has finished.

He says the money would change hands once all goods and services have been signed off.

Mr Pero says the move would mean accountability for builders and there has already been support for the idea within the industry.