While the residential strata industry watches with concern at the events at Mascot Towers, it’s interesting to note the tone of the state government’s response, particularly the Premier's comment reported in yesterday’s media: “I also ask all owners corporations and building managers to step up and make sure they’re doing everything they can according to the law.”  This comment, while it might be directed at bodies involved in the Mascot Towers example, has landed hard with those involved with the sector.  It suggests a lack of understanding about the position of owners’ corporations generally, and the committees that run them. 

In NSW when owners' corporations "step up" to address major defects in their buildings they find the laws and their regulations are of little help.  This government and many before it have presided over the gradual dilution of effective consumer protection. 

Mascot Towers remains empty as investigations continue into the cause of cracking to a crucial support beam.  Credit:Wolter Peeters

Owners’ corporations are made up of volunteers who give many hours a week of unpaid, unloved work.  They "step up" to take on unpaid executive “directorships” of corporations, which often have a net asset value equivalent to major corporations.  They do this without any training or support from the state government.  They are understandably unfamiliar with the complexities of the building industry, the nuances of regulatory options and the challenges of construction law - until they go to battle.  Then they learn fast. 

When faced with major defects they engage a raft of experts and lawyers to try and get builders and developers to fix their buildings.  They are often unsuccessful since regulations are strongly in favour of those industry groups and commercial interests who make the most noise in the halls of power.