27 May 2010

Leaky Home Solution Disadvantages Papakura Residents
• Government loads cost burden “unfairly” across region and nation

Papakura District Council Mayor Calum Penrose says the Government’s proposed solution to the leaky homes issue will bring relief to owners of leaky homes and offer some kind of closure for them.

“For that we have to be grateful. But the unfairness of the 25:25:50 cost split between taxpayers, ratepayers and home owners will impact on Papakura people who have had little part in this scandal. For our people, this is an unfair burden.’

Mr Penrose says the Government’s proposed cost-sharing solution to the leaky homes issue will fall heaviest on those who are least able to afford it, and whose councils have already dealt with almost all their local cases.

“People should also remember, when the Government offers to pick up 25 per cent of this tab, they are doing so with your taxes.”

With only four leaky homes, Papakura residents will now be asked to support owners of leaky homes across the region and the country. And with the district facing amalgamation into the new Auckland Council in just five months, Mr Penrose says that means Papakura ratepayers face a “double whammy” of costs as citizens of the new Auckland.

“We are ratepayers and on November 1 we will become ratepayers of the new Auckland. We are also in most cases taxpayers. So we will be expected to pay our share of 50 per cent of the cost burden, with most of the country’s leaky homes located on other parts of Auckland. Residents of other parts of New Zealand will contribute through their taxes, but with the lion’s share of leaky homes located in Auckland, we are going to be hammered,” said Mr Penrose.

Having campaigned long and hard to keep Papakura out of the coming “Supercity” Mr Penrose says it is ironic that his clear warnings about these issues went unheeded by the Government.

“Many of the things that are emerging now are things we predicted up to two years ago. I warned about this leaky homes cost imbalance more than a year ago. Papakura was also among the first to warn that any cost saving from amalgamation would be pretty small and would get eaten up in the cost of creating the new Council. I wonder what other nasty surprises are in store for ratepayers when the new Auckland arrives.”

With transition costs likely to add significantly to rates bills over the first 12-18 months of the new Council’s term, Mr Penrose says he fears the leaky homes bill will stretch some residents to breaking point.

”This distribution of leaky homes costs will hit Papakura ratepayers hardest of all. They are being forced to be part of the solution and they simply have not been a part of the problem. How exactly is that fair?”

ENDS

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