Major reconstruction of building industry needed say MPs

3.00pm

The building industry needs an overhaul to ensure homes are built properly, a parliamentary committee said today.

The Government Administration Committee has made 63 recommendations following its inquiry into the weather tightness of buildings.

These include:

* a range of reviews of building materials;

* an overhaul of how building consents are granted;

* tough new rules on building inspection and penalties for non-compliance of building codes;

* consideration of a building industry registration regime;

* the possible establishment of consumer protection agency; and

* a complete and urgent revamp of the Building Act.

The Government has already issued a discussion document on reforming the Building Act and said it would incorporate the MPs' work into its plans.

The inquiry was sparked by public concerns about the leaky homes crisis.

Another report released by the same committee earlier today heavily criticised the Building Industry Authority, saying it lacked leadership. Its chief executive, Bill Porteous, resigned yesterday.

The second report is more technical in nature but covers similar ground to the Hunn Report into leaky homes and the Government's legislative discussion document.

The report said the size of the leaky home problem was still not clear and more research was needed.

"The evidence we did receive, particularly the Auckland Cladding Survey 2000, suggests that the problem is substantial, at least in the Auckland area," the report said.

"Weathertightness problems appear to be mainly associated with multi-unit speculative housing and very complex high-cost single family homes. 'Acceptable' cladding systems of several different types and manufacture seems to be a common factor, but we consider the research undertaken to determine the extent of the problem is inconclusive."

The leaky homes crisis had "uncovered the systemic failure of the building industry... that needs a shake-up".

The Building Act in 1991 -- passed with the support of Labour and National -- had moved from an overly prescriptive regime and had led to some positive developments in the industry.

The committee believed the lack of a "backstop of prescriptive 'how-to' standards" had contributed to the systemic failure in the industry.

Standards had fallen across the building industry in skills, materials and approaches to building and these needed to be urgently addressed.

"There will be social and financial costs associated with achieving higher standards and more rigorous regulation of the industry"

- NZPA

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