Building Industry Authority scolded, but jobs safe

By FRANCESCA MOLD

Building Industry Authority members who did not immediately alert the Government to the rotting homes problem will keep their jobs despite a new report's suggestion that they should have been more active in managing the crisis.

The report by former State Services Commissioner Don Hunn, made public yesterday, said the building industry was facing a major crisis.

It said the Government-appointed building authority had been criticised for being too slow to respond to concerns, defensive and vague and recommended it be overhauled so it could give a more comprehensive service to the public and the industry.

Deputy Prime Minister Michael Cullen said the Government would make changes to the authority.

It would be under the Ministry of Economic Development and would be supervised by a new three-person advisory group.

Dr Cullen indicated members of the BIA board would not be sacked, despite not fulfilling their statutory responsibility to keep the Government informed.

He said the authority seemed to have "somehow forgotten" that was a prime part of its role.

It had since made a "somewhat grudging" apology for that error and it was time to move on.

"The issue is what are we going to do about the problem, not who is going to be strung up from the top of some overpass."

But the Opposition criticised the decision not to hold board members accountable, saying it was a slap in the face for homeowners.

National leader Bill English said the Government had simply "slapped the BIA around with a feather duster and reshuffled the bureaucracy".

Dr Cullen deflected persistent questions from reporters about how the public could continue to have faith in the authority.

"What you're really saying is there aren't any corpses and we want a corpse because until we see it we won't know that action has been taken," he said.

"I'm saying there aren't any corpses."

The release of the Hunn report came hours before authority board members and staff appeared before a parliamentary select committee inquiry to explain their handling of the crisis.

Board chairman Barry Brown told MPs the authority deserved commendation, rather than vilification, for having had the collective courage and strength to take action as swiftly as it had.

His submission irritated United Future MP Murray Smith, who said it was like claiming credit for closing the door after the horse had bolted.

"As a watchdog, I put it to you that the neighbourhood watchdogs had been barking back in 1997-98, but the BIA simply raised its ears, looked around and said, 'Wake me when the gun goes off'."

Dr Porteous said the leaky homes problem was multifaceted and responsibility should be shared by the whole industry.

He had not raised concerns about leaky homes earlier because there was no corroborating evidence of a problem from territorial authorities or building certifiers.

Dr Porteous said the authority had no administrative control over owners, designers, material manufacturers, builders, subcontractors and the industry in general.

It was essentially a "toothless tiger" in terms of its control over the performance of territorial authorities.

The Hunn report recommended that the role of territorial authorities and building certifiers be reviewed.

It also said the Building Act was fundamentally sound, but had some deficiencies which had contributed to the leaky homes crisis.

Mr Hunn recommended that building regulations be tightened because the too-light-handed regulatory approach did not give consumers enough protection.

There was also a power imbalance between consumers and the industry.

If something went wrong, homeowners found it too expensive, time-consuming and difficult to obtain legal redress.

Mr Hunn said new legislation needed to emphasise the requirement that homes be weathertight and durable.

Dr Cullen said the Government would move the building industry back to a regulatory regime that was in the "sensible centre".

It had previously swung too far towards less supervision, he said.

The changes would increase the cost of building new homes but would reduce maintenance costs.

Yesterday, 456 people had registered with the Government's weathertight homes resolution service.

The service will inspect properties and report on possible causes and likely repair costs.

Once homes have been assessed, affected homeowners can move to voluntary mediation, or compulsory adjudication.

Dr Cullen expects many more registrations.

"The number of people going through the process is going to run into many thousands.

"It's certainly going to be a multimillion-dollar problem, running into tens of millions of dollars at least."

A helpline set up by the Government has been busy since the Herald published the Prime Minister's remarks on the crisis.

Helen Clark suggested on Monday that the issue was a "Herald beat-up", partly because only about 1000 calls had been logged on the hotline.

By yesterday the total was 1227, an increase of more than 20 per cent in three days.

The helpline number is (0800) 116-926

WHAT THEY SAID


I know that trying to nail people up is sort of Kiwi sport at the moment. It's not so much as cutting down tall poppies, it's crucifying them in some way or another.

- Deputy Prime Minister Michael Cullen.

* * *

The issue is what we are going to do about the problem, not who is going to be strung up from the top of some overpass and watch their bones bleach in the sun.

- Dr Cullen.

* * *

We've had an apology ... A mistake was made, the minister wasn't advised properly, let's move on from there.

- Dr Cullen.

* * *

The Government has slapped the BIA around with a feather duster and reshuffled the bureaucracy.

- National leader Bill English.

* * *

At times we've felt that we might be taking too much of the blame, but that's really for others to decide.

- BIA chief executive Bill Porteous.

* * *

The authority deserves commendation, not criticism and vilification, for having the collective courage and strength of purpose to progress the weathertight issue as swiftly and appropriately as it did.

- BIA board chairman Barry Brown.

* * *

As a watchdog, I put it to you the neighbourhood watchdogs had been barking back in 1997-98, but the BIA simply raised its ears, looked around and said wake me when the gun goes off.

- United Future MP Murray Smith.

* * *

With the benefit of hindsight, I accept that I should have advised you of the steps which the authority was taking on the weathertightness issue before 30 April 2002, and that I was remiss in not doing so.

- BIA chairman Barry Brown in a letter to Internal Affairs Minister George Hawkins.

* * *

Until I received your letter of October 30, I believed that I had provided you with timely and 'no surprises' advice on the weathertightness issue.

- Mr Brown wrote to Mr Hawkins, who had complained about not being informed.

* * *

Housing is not just another commodity. It has a special call on the Government's attention and the regulatory framework must reflect this - it cannot be left to market forces alone.

- Independent investigator Don Hunn.


* If you have information about leaking buildings,
email the Herald or fax (09) 373-6421.

Herald feature: Leaky buildings

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