Government to establish leaky building mediation service

12.45pm

The Government will establish a mediation service to help people with leaky homes find a remedy, Internal Affairs Minister George Hawkins announced today.

The framework and terms of reference for the mediation service was being developed with help from a group convened by the Internal Affairs Department. The group comprised people in the financial, construction and dispute resolution areas.

The Government had "various methods" for ensuring those responsible for the problems participate in mediation, Mr Hawkins said.

It would initially be funded by the Government but ongoing running costs would depend on how many people used the service, Mr Hawkins said. Industry bodies would be approached to see how they could contribute.

Mediation would be preceded by initial screening to identify leaky buildings, followed by assessment to establish the cause of leaks found. Local Government New Zealand and the Master Builders Federation would help carry out that service, Mr Hawkins said.

"Mediation is a sound, inexpensive, first port of call for people with leaking homes," Mr Hawkins said.

"Its value lies in its underlying principle that parties, in the presence of an independent person, sit down and themselves agree to try and find a solution."

However, the service would not necessarily result in a resolution. Parties could reach a binding settlement or could agree to disagree, Mr Hawkins said.

"At that point, litigation through the courts becomes the main option," he said.

"Obviously, while the hope is mediation will keep as many people out of court as possible, some will want their day in court, as is their right."

Mr Hawkins said mediation was part of a three-pronged approach, the other two being the need to ensure any change to insurance cover for building certifiers did not result in the building industry being disrupted and regulations to ensure there was no repeat.

Acting Finance Minister Trevor Mallard said at a press conference that around $4 million had been set aside to set up the service.

Home owners with complaints would have to pay a "small but affordable fee" to have their homes screened, Mr Hawkins said

Some screening would be done by Christmas, but the two ministers were unwilling to say when the first mediation hearings would begin.

- NZPA

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Further reading
Feature: Leaky buildings

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