House crisis triggers revamp plan

By FRANCESCA MOLD

The Building Industry Authority faces a major shake-up in the aftermath of the rotting homes crisis.

A report into the authority's handling of the crisis recommends the revamp.

The report by former State Services Commissioner Don Hunn, is to be made public today.

Also today, the authority's board and chief executive Bill Porteous will face a grilling before a parliamentary select committee inquiry

And a 10-page letter from the authority to Internal Affairs Minister George Hawkins, apologising and explaining why it did not alert him to the crisis, will be made public today.

It is understood Mr Hunn's report looks at past problems faced by the authority and its future role, resourcing and responsibilities.

The release of the report and letter on the same day as the authority's first public appearance before the select committee will give the Opposition fresh ammunition.

But it also avoids any criticism of the Government and the authority being drawn out over several days.

The report is the latest in a series since Mr Hunn was appointed in February to head an independent inquiry into leaky buildings.

His first report found clear evidence of a significant, growing problem - and predicted a $240 million repair bill.

Yesterday, National leader Bill English accused Prime Minister Helen Clark, Mr Hawkins and the authority of being involved in a conspiracy against homeowners.

He produced documents suggesting a weathertightness "media work group" overseen by the authority was more concerned about protecting itself from bad publicity than protecting homeowners.

The documents include a confidential letter written in August by Mr Hunn to authority chairman Barry Brown, raising health and safety issues discovered during his inquiry into weathertightness.

His letter raised the case of a homeowner who fell through a rotting deck, and warned that the risk of death or serious injury from the collapse of balconies or decks was unacceptably high.

Two days later, the authority issued a statement about "potentially unsafe balconies and balustrades".

A second document recording the minutes of a meeting of the media work group talked about the need to publicise the concern raised by Mr Hunn in a way that minimised alarm or panic among homeowners.

The document also discussed legal advice from law firm Simpson Grierson warning that territorial authorities would be ill-advised to make any comment regarding the outcome of an inspection of a leaky home because it could be seen as an admission of liability.

Mr English said the documents showed the discussion was about "bum-covering, avoiding liability, not owning up, ignoring the scale of the problem, and making sure they doctor their media relations to keep it that way".

The National leader also attacked Helen Clark's suggestions over the past couple of days that the Herald had "magnified" the extent of the leaky homes problem.

He said the Prime Minister was protecting Mr Hawkins from allegations of incompetence at the expense of homeowners.

Mr English said the Prime Minister "clearly is on another planet when it comes to any perspective on the rotting home crisis".

Helen Clark accused the Herald of "banging on about issues of no substance", and cited its coverage of leaky buildings.

She has claimed in two radio interviews that the Herald is exaggerating the problem.

"Of course it is a problem, but what I have questioned is the way the Herald has crusaded on it," she told Radio Pacific yesterday.

Helen Clark said the Government had set up an assessment and dispute resolution service.

It was also reviewing legislation and had moved the authority under the responsibility of the Ministry of Economic Development rather than Internal Affairs.

It also emerged yesterday that several Labour backbench MPs knew before Mr Hawkins about the leaky homes crisis.

MPs on a select committee were briefed about the Hunn inquiry a month before Mr Hawkins said he was made aware of the problem.

A spokeswoman for Mr Hawkins said telling a select committee was not the same as telling the minister.

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

Herald feature: Leaky buildings

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