Industry News

Compass dealer collapses with 70 pools unfinished

June 19, 2013

Credibility Queensland Pty Ltd, trading as Compass Pools Northside, has been placed in liquidation with 70 pools left unfinished.

SPASA Queensland through its Watertight fund in conjunction with Compass Pools Australia has stepped in to complete the projects and see that consumers are not left in the lurch. Credibility Queensland was an agent for Compass Pools Australia’s pre-fabricated pools.

Meanwhile, the Queensland Government is considering bringing swimming pools under the Home Warranty Scheme.

SPASA Queensland President Andrew Jakovac says that in conjunction with Compass Pools Australia, SPASA has ensured all work will now be completed with no financial impact to contract holders.

“Compass Pools Australia has moved at lightning speed to establish its building arm in Queensland and will now take on the completion of those projects. All of those associated costs are being met by the industry’s Watertight program.”

Jacovac says the untimely demise of the dealer company highlights the need for consumers to always ensure they have the protection offered by a registered SPASA member.

“Swimming pools, unlike home construction, are not protected by mandatory government insurance. So, as an industry, we have established this fund to protect consumers when building, installing or renovating pools and spas. Our members must provide Watertight ‘Contract Completion’ and ‘Defective Constriction’ benefits contracts. This is an example of just how well our protection system can work.”

Anthony Cross, Chief Operating Officer for Compass Pools Australia, says the company has moved quickly to work with SPASA to ensure minimal disruption to consumers.

“We have been in touch will all existing customers and have begun the processes of fast tracking completion of the work. We are now here in Queensland to ensure an on-the-ground response.”

Fund healthy

In 2012 the Watertight scheme was the centre of a controversy after money was moved from the Trust to fund the operation of SPASA Queensland’s now defunct training arm, NSPI.

Since then, SPASA’s property at Newstead was sold and the money was returned to the Trust. A SPASA legal case is ongoing against the auditors and the previous CEO, David Close in relation to that matter.

Jakovac says that now the industry protection fund is healthy.

“The program operates through an industry established mutual discretionary trust fund (the SPASA Benefits Trust) and exists to cover claims made under a Watertight Contract Benefits to participating Customers,” he says.

Jakovac says anyone who is affected by the collapse of Credibility Queensland and who may have concerns can contact SPASA.

“We are working closely with Compass Pools Australia to ensure there is as little inconvenience to customers as possible. Our customers are making a major investment in their key asset, their home, and we want to ensure that that process is effective and rewarding for them.”



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