New Leaky Buildings Proposal Could Seal Deal – LGNZ

The Government’s leaky buildings proposal is, on the face of it, an acceptable and pragmatic compromise, says Local Government New Zealand.

LGNZ’s leaky building spokesperson, Wellington Mayor Kerry Prendergast, says the proposal offers a clearer direction for thousands of leaky home owners.

“We are pleased and relieved that the Government has agreed to share the costs with local government on a 25/25-percent basis.

“This is fair recognition of the shared responsibility that the Government and councils have to help sort out this major crisis for affected home owners.”

Mayor Prendergast says councils will have to move fast – with a deadline of 31 May - to discuss whether they find the Government proposal acceptable. “From listening to the briefing this afternoon I am hopeful most councils will be able to agree in principle to the proposal. It is a great deal better than what was originally on the table.

“However it will obviously be up to individual councils to make their own decisions.

“We have grappled with the issue of liability for years during which time the leaky building time bomb has exploded into a national catastrophe which threatens to leave New Zealanders with a $20 billion dollar clean-up bill and untold personal grief and hardship for many leaky home owners.

“All parties in this most difficult of issues are stuck between a rock and a hard place. This proposal negotiates a clear path forward which could see lengthy and expensive legal proceedings avoided.”

However, Mayor Prendergast says there are still many issues to work through.

“We need to look at what is proposed in more detail but from a first look, the proposal provides greater certainty, more fairly apportions responsibility and offers a better way forward than the current system so leaky home owners can get their homes fixed and get on with their lives.”

Mayor Prendergast says she commends the Prime Minister and the Minister for Building and Construction for getting Cabinet support on this complex issue.

ENDS

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