City saves by signing up to leaky buildings scheme

Photo / Dean Purcell

The Auckland City Council is to save money by joining the Government's leaky building scheme.

The city's regulatory claims manager, Sally Grey, said the state scheme announced on May 17 would benefit the council and victims.

She prepared a report in response to the Government's financial assistance package. In return for not suing, victims will pay half the repair costs, the Government a quarter and councils the other quarter.

Opting into the new voluntary scheme does not prevent victims suing parties other than councils.

"The council will not pay more with the new scheme offered as an alternative," she said. "It is expected to be a similar amount or less. We expect more upfront payments as an increasing number of homeowners access this scheme. In the long term, it is expected to be significantly less.

"Another key benefit is that council's contribution will go into the fixing of houses and not into litigation costs," she said.

A PricewaterhouseCoopers report in December said the leaky homes disaster would cost $11 billion to $22 billion nationally.

Figures from the Weathertight Homes Resolution Service showed that of 3973 properties being handled by the service, 2046 Auckland properties had active claims, 473 in North Shore City, 372 in Waitakere, 126 in Manukau and 85 in Rodney.

The decision to join the scheme will apply to the new Super City when it comes into effect.