McNab Constructions CEO Michael McNab is worried for the construction industry next year as inquiries begin to drop.
McNab Constructions CEO Michael McNab is worried for the construction industry next year as inquiries begin to drop.

Construction company head’s worry after builder collapse

THE head of a major building company made the case for governments to slash red tape to help construction businesses following the collapse of RGD Group.

McNab chief executive Michael McNab said the administration of the long-term Coast construction business was not good for the industry.

Mr McNab said some of the affected subcontractors were also completing work for his business.

"I feel sorry for them, I really do, for everyone involved," Mr McNab said. "We have several of those subcontractors on our sites and we'll support them with earlier cashflow."

While Mr McNab did not know the reason behind RGD Group's collapse, he said governments must cut red tape to help construction businesses through the economic slump.

"We're not looking for subsidies or favours, we're looking for the governments of all levels to work with us," he said. "If a permit is taking three months on a project that's ready to go, why can't it take a month?"

He said they had several projects coming up this year on the Coast, but had concern for a decline in inquiries for next year.

Long-term Coast developer and now director of Double R Projects, Ken Reed, said while he was unaware of specifics, he was saddened by the news of RGD Group's collapse.

"You feel for those who are affected and the principles involved," he said.

"Ron seems like a hard-working and genuine person and you don't want to see anyone go through that."



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