Mayors, Govt hold talks on leaks crisis

Metro-city mayors from the six worst-affected leaky home areas are due to talk to the Government today about resolving the crisis.

The leaders of Auckland, North Shore, Waitakere, Tauranga, Wellington and Christchurch are in discussion over who foots the bill for the problem, estimated to cost $11.6 billion to $20 billion to fix.

North Shore Mayor Andrew Williams said a teleconference with Building and Construction Minister Maurice Williamson was scheduled for this afternoon.

On Friday, Waitakere Mayor Bob Harvey said discussions were an attempt to iron out a deal between local and central government before the new Auckland Super City was formed.

Papers shown to the Herald show Mr Williamson proposing the Government contributes only 10 per cent to some leaky home victims, equating to $777 million by 2034.

To qualify for that 10 per cent, homeowners would have to be poor, old and pay 64 per cent. Councils would be limited to a 26 per cent of costs.

The deal outraged many who sought a stronger state contribution to the problem affecting thousands of New Zealand houses.

Auckland City Mayor John Banks yesterday warned against holding out hopes that any talks would result in any immediate solution.

The crisis had been ongoing for years and would not be resolved fast, he said.

But he also revealed his own plans to help thousands of Auckland victims, saying once the Government deal was in place he would launch his own scheme to provide much-needed assistance.

He plans to negotiate with hardware and timber suppliers to get discounts on new materials to replace rotting housing components.

One Ellerslie family Mr Banks visited had three children and faced a $200,000 leaky repair bill.

"The father works six days a week as an electrician. They have a $700,000 home - if it's worth that, even if they could find a buyer."

But he also warned people to be realistic about the Government's contribution to the disaster.

Mr Williamson has refused to comment on the issue, the teleconference and the new deal being proposed.

The state's role

* Weathertight Homes Tribunal: Ministry of Justice.

* Weathertight Services: Building and Housing Department.

* Tightened-up laws on building and builders to eliminate leaks.

* All litigation against state regulator Building Industry Association failed.

* Most parties sue local government for issuing consent and compliance.

* Councils want to pay less and are crying out for more state assistance.

* They face huge rates rises and insurance costs without state help.