Arabic version: جنوب أستراليا تدرس الخيارات بعد إلغاء ويل.كو للعقود

According to ABC News, South Australia’s cabinet has authorised the SA Commissioner for Business Services to conduct an “active examination of all of the legal options” to hold developer Wel.Co “to account”. The move follows the company’s cancellation last week of 75 homebuyer contracts for stages eight and nine of its Springwood Estate at Gawler East.

Wel.Co said changes to planning for the broader area, including roads and infrastructure, meant the stages could no longer be delivered as purchasers had originally contracted. It said a road once expected to operate locally was now planned as a major distributor road carrying substantially more traffic, fundamentally changing the living environment for adjoining homes. The company said the issue was isolated to stages eight and nine and that its broader project portfolio was progressing as planned.

Planning Minister Nick Champion said the contracts had been cancelled without “real justification”, stating that nothing the state government had done in infrastructure provision would lead to the company’s decision. Premier Peter Malinauskas said clauses allowing developers to walk away from contracts should be closely examined. He said the government would consider legislative options to regulate the practice as well as available legal responses, unless the contracts were reinstated.

Wel.Co said it was continuing discussions with the Town of Gawler Council about planning matters for the affected Springwood stages, but that further comment would be inappropriate. In Renmark, where Wel.Co has a contract with Renmark Paringa Council to develop about 800 homes in an extension to Jane Eliza River Estate, the company said the project was separate from Springwood and remained in the planning process. Council chief executive Tony Siviour said council had no reason to suggest the Springwood issues affected Jane Eliza.