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Creditors could seek family first donations after bob days building empire collapsed

CREDITORS owed millions of dollars after former-Senator Bob Day’s building empire collapsed might be able to seek about $2 million in donations he made to the Family First party.

Speaking in Tasmania on Friday, Prime Minister Malcolm Turnbull said there were provisions for liquidators to recover money paid from companies under bankruptcy laws.

Records show former Senator Bob Day, who resigned on Tuesday, made $2,028,200 in donations to the Family First party over the past two financial years.

Mr Day made a $73,200 donation to the party in 2014-15 and donations of $1,471,000 and $484,000 in 2013-14.

Bob Day will be the judge of his own moral obligations, Mr Turnbull said.

It may well be that some payments from Mr Day may be able to be recovered.

Unsecured creditors of Mr Days failed building company Homestead Homes were told at a creditors meeting in Adelaide on Friday they would not be paid the money they were owed.

It owes people in this room and people that might not be here today about $4.9 million, liquidator Matthew Caddy told creditors.

It is almost certain that there will be no money available for insecure creditors.

It will essentially be a bad debt.

But the liquidator would scrutinise donations made to the Family First as part of the investigation.

Mr Caddy said the building group Home Australia lost about $12 million in the final three years before it was declared insolvent.

When the former Family First senator called in the liquidators the companies had no money.

We had to cease construction of any homes, he said.

We had no money to pay tradesmen.

There are 28 unsecured creditors in SA who paid deposits on homes and 75 across the whole group, which consists of five companies.

The liquidator said when Mr Day entered politics he did not appoint anyone else to run the business and it went downhill.

He said money was being moved between the separate businesses in SA, Victoria, NSW, Queensland and WA but they were being run without cohesion. They were left to run themselves, he said.

There was limited integration of the businesses. They were operating within their own silos.

He said the demise of the NSW business Huxley Homes was most significant in the downfall of the group.

- with AAP

Dreamworld to demolish death ride

DREAMWORLD has announced the ride that killed four theme park visitors will never run again.

The theme park has this morning issued a statement announcing the Thunder River Rapid ride would be permanently decommissioned following a thorough police investigation that has seen the ride transformed into a crime scene following the deaths two weeks ago.

Parent company Ardent Leisure CEO Deborah Thomas said the ride would be permanently closed as a mark of respect for the grieving families.

Out of respect for the memories of Cindy Low, Roozbeh Araghi, Kate Goodchild and Luke Dorsett, and their deeply affected families, the ride will be permanently decommissioned, she said.

The closure of the ride is the only respectful and appropriate course of action.

Ms Thomas also announced an independent engineering firm had been appointed to lead a safety review of all of Dreamworlds and its sister park WhitewaterWorlds rides and operating systems.

Pitt & Sherry, which has been assigned the task, is said to be one of Australias leading experts in mechanical engineering with extensive experience in providing engineering and technical services for amusement rides and devices, Ms Thomas said.

Dreamworld has also begun an internal review of rides.

No ride at Dreamworld will operate until the Workplace Health and Safety Audit has been completed and unless it passes the multi-level internal review process, Ms Thomas said.

Ardent has also announced it would consult with the families over creating a living memorial to incorporate floral tributes and cards left at the fun parks gates following the tragedy.

Dreamworld has been closed since the deaths last month which occurred when the ride malfunctioned, flipping the raft holding the four victims and two children who miraculously survived.

After scrapping an initial plan to reopen three days after the deaths, Dreamworld bosses said they wouldnt discuss reopening the park until all four funerals had been held.

Ms Goodchild and Mr Dorsett were farewelled in a private ceremony on Monday, completing the last of the victims funerals.

Dreamworld CEO Craig Davidson is scheduled to make an announcement and is expected to give more detail around the rides demolition and parks potential opening on Wednesday afternoon.