Call for Govt to move over Hartner collapse

By ANNE GIBSON property editor

Pressure is mounting on the Government to step into the Hartner debacle, as estimates of the size of the builder's failure near $50 million.

Appointing a statutory manager is the only option, according to two vocal industry experts, Subcontractors Federation executive officer Peter Degerholm and Auckland disputes arbitrator Geoff Bayley.

Both want the Government to intervene and protect the interests of the hundreds of subcontractors and unsecured creditors, because they say the scope of the receivership is too narrow.

Receiver John Waller is protecting the interests of the National Bank, owed $8.1 million, but says he has gone out of his way to help the unsecured creditors as well. He has pegged debts so far at a conservative $10 million only.

Ministry of Economic Development officials have kept a close eye on the Hartner receivership, a spokeswoman for Commerce Minister Paul Swain said yesterday. But no action was planned at this stage because there was no proof that Hartner had behaved fraudulently or recklessly.

Mr Bayley and Mr Degerholm are pleading with Mr Swain and Associate Commerce Minister Laila Harre to step in, and hope the matter will come before the cabinet on Monday.

Mr Bayley has calculated the building firm's losses at nearer $50 million.

He says a grim race is on as the future of Hartner's largest project hangs in the balance.

On Monday, Princes Wharf developer David Henderson hopes to get subcontractors back on his site and legally restart his project, following the expiry of a 10-day clause brought after Hartner was in breach of the construction contract.

Mr Waller is also racing to get work re-started on the $50 million Hilton hotel on the wharf, meeting subcontractors today to "update" them.

Monday could also be the day the Government moves under the obscure Corporations (Investigation and Management) Act 1989 - section 4 allows it to step in in some circumstances to protect shareholder, creditor or public interest.

Those owed money want access to the proceeds of Wayne Hartner's $4 million-plus house in Epsom and his $6.7 million launch.

But Mr Waller says these are "outside my scope."