Government nods towards compulsory builder registration

By FRANCESCA MOLD political reporter

The Government has sent its strongest signal that compulsory builder registration will be among rules designed to deal with the rotting buildings crisis.

Cabinet ministers discussed the issue at a meeting yesterday.

Prime Minister Helen Clark later said the Government was not ready to reveal its plan for further action.

But she did suggest that compulsory registration was likely, along with other significant changes to the Building Act.

"You can take it as read that the Cabinet will be interested in some degree of re-regulation, including registration of builders," she said after the meeting.

The building industry has already indicated its support for the compulsory registration of builders, subcontractors and other tradespeople as part of a plan to prevent the problem happening again.

Helen Clark said a team of ministers and officials, led by Deputy Prime Minister Michael Cullen, were working on solutions to the housing crisis.

Their work included looking at the proposed mediation service and local government and certification.

Economic and market issues around insurance and banking were monitored, and officials were also looking at "forward" regulatory issues, in terms of the review of the Building Act.

The Weekend Herald revealed the Government's plan to beef up its response to the leaky buildings crisis.

Options being considered included giving homeowners a guarantee on their house, backed by a building industry fidelity fund.

There would be a new or increased building levy to pay for the home guarantee fund.

Another possibility included beefing up the mediation and arbitration service, which has been criticised as too weak.

Helen Clark said the work being done by the working party was difficult and had involved bringing in experts.

"We are going down every highway and byway on the issue, on how to get resolution for the people affected and how to revamp the Building Act for the future. It's quite a complex work programme."

She said Dr Cullen was likely to release more information about the Government's plan this week.

The Prime Minister said leaky buildings inquiry chairman Don Hunn was due to provide the Government with a second report on the crisis "reasonably soon".

The report would look at the act and the role of the Building Industry Authority, including whether it should have dealt with the leak issue sooner.

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

Further reading
Feature: Leaky buildings

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