this Melbourne based builder has just closed his Queensland operation.
No warm or fuzzy sentiments about the staff he has just fired.
'We don't need them' were his words.
That is the reality.
House builder bails out of Queensland
Melbourne-based residential builder Simonds Homes has announced the immediate closure of its Queensland operation, blaming the worsening economy and a slump in demand.
Dozens of contract workers, including estimators, draftsmen and sales staff, were today told to stay at home amid growing speculation the business had "gone under".
However managing director Gary Simonds rejected suggestions of financial trouble and assured existing customers their homes would be built.
Mr Simonds said the shock decision was based solely on dwindling demand for new homes and the forecast for continued economic uncertainty.
Sales of new homes in Queensland dropped by 10.1 per cent in November, despite the $21,000 first-home buyers' grant the Federal Government is offering for new properties until June 30.
The rest of the national company will continue to operate as normal, Mr Simonds said.
"We have decided not to take anymore orders in Queensland and we are scaling back our business there because of economic times," Mr Simonds said.
A small skeleton staff will complete work on the last of Simonds contracts in the south-east in the next six to nine months.
"We will (also) be there to service the maintenance of the warranties for the periods we are obligated to," he said.
Mr Simonds admitted he had considered withdrawing from Queensland for some time, but defended the short notice given to contract staff.
"They would've been draftspeople ... estimators, sales people especially ... because we don't need (them) anymore."
Queensland's economic outlook is unlikely to improve in the short term, Mr Simonds said, and the company may never return.
