Report lifts homeowners' subsidence claim hopes

Taupo residents at the centre of a long-running subsidence dispute have been boosted by a report on their homes.

The review, by Taupo District Council's geotechnical adviser Sinclair Knight Merz, said the damage to the homes was "more likely than not" caused by deep-seated subsidence, backing up the residents' view that it was caused by the extraction of geothermal fluids by Contact Energy.

"It basically vindicates what we have been saying all along," said John McCartney, the residents' spokesman.

Earlier building status reports on two Invergarry Rd homes were narrow in scope, the review said.

Residents had described their homes as "imploded" with even the external nails "popping out".

The earlier Building Research Association of New Zealand reports, commissioned by Contact Energy, which bought the two homes this year, found the state of the houses was pretty much as expected for their age and quality of construction.

The reports said the construction of both properties was of "relatively low quality and standard". It said maintenance of the properties in the intervening period had been "minimal".

Such comments upset former residents of the two homes, who maintained they did no upkeep for the last three years because it was "pointless".

The review of the reports found that the limited scope of the initial investigation meant it was too early to draw any conclusions.

A progress report on the council's appeal to the Environment Court over subsidence is expected within the next month.

- NZPA