Labour fears for leaky homes

Phil Twyford says Auckland could have 1200 to 1500 leaky home cases over the next three years. Photo / Dean Purcell

Labour MP Phil Twyford fears the new Super City will abandon leaky-house victims and escape claims worth millions of dollars.

But Local Government Minister Rodney Hide has flatly rejected this and says the new council will take on all the old councils' liabilities as well as assets.

Via RiskPool, which insures 82 councils, local authorities are paying millions in compensation to leaky-house victims. But Mr Twyford said that could all stop soon and he is particularly worried about victims whose claims for leaky buildings will be based on certifications by axed councils but whose problems will not have been detected when those councils are disbanded.

"Some people in local government say that when the current local territorial authorities were established in 1989, they were often very reluctant to accept liability for problems that had occurred under the old councils."

The new Super City law says all assets and liabilities of the old councils will pass to the new structure, he said.

"But what about claims where liability has not yet been established but where, in the case of leaky homes, the construction and certification took place pre-Super City and under the old councils?" Mr Twyford asked.

The Department of Building and Housing had said 75 per cent of leaky-building claims nationally were in Auckland. Mr Twyford said Auckland could have 1200 to 1500 cases over the next three years.

"Will Rodney Hide reassure Auckland homeowners that the new Auckland Council will accept liability for leaky homes that were built under the old councils?" Mr Twyford asked. "Will the current councils accept liability for leaky-homes cases in the next 15 months leading up to their disestablishment?"

Mr Hide said the Super City law made it clear that the new council would assume responsibility for the rights and obligations of all the old councils.

On November 1 next year, when the councils are dissolved, all the rights, liabilities, contracts, entitlements and engagements of each existing local authority would become those of the new Auckland Council, Mr Hide said.

"The existing councils will continue to determine their approach to compensation claims throughout the transition period."

* Leaky-building claims:

Number of properties with active claims as at June 30.

Auckland 1798

North Shore 453

Waitakere 333

Manukau 123

Rodney 92

National total 3746


Source: Building and Housing Department.