Media release

Auckland Councillor Cameron Brewer

Friday, 23 March 2012



Not fair that next generation has to pay for today’s leaky homes

Auckland Councillor Cameron Brewer says Mayor Len Brown needs to address the $487m bill to fix Auckland’s leaky houses, not pass the buck onto future generations of ratepayers.

Auckland Council’s draft Long Term Plan proposes that the forecast expenditure gets debt funded and paid off by future ratepayers over the next 30 years. Submissions on the Council’s draft 10-year plan and budget close 4pm today.

“Sadly it’s the future ratepayers of Auckland that will have to stump up the cash over the next 30 years to right the wrongs of a 1991 Building Act which reduced building controls and standards, developers, builders and architects who cut corners, and former local authorities that failed in their inspection duties. All mistakes that are sadly set to be paid for by the next generation of Auckland home owners. It’s an outrage.

“The draft Long Term Plan softens ratepayers up that associated borrowing costs could well be higher, which is of course code for they will definitely be much higher than this forecast of $487m.

“Half a billion dollars over the coming decade is probably only the start for Auckland ratepayers. Let’s not forget that only a small minority have been repaired so far and the total cost of leaky homes nationwide has been estimated at $11.5 billion. Even if you calculate very conservatively that half are from the Auckland region, we’ll that’s nearly $6b, and with local authorities meeting 25% of the agreed repair costs, then there’s $1.5b for Auckland Council right there.

“Debt funding these mistakes of 10 to 20 years ago, and putting the onus onto our children and grandchildren over the next 30 years just doesn’t seem right. Let’s not forget that the Mayor has promised that his tripling of debt will only be for major intergenerational capital projects, but here we’ve got at least half a billion dollars being debt funded solely because of some terrible regulatory shortcomings of the 1990s.

“I’m not suggesting we put up rates to fund the repairs but perhaps we just need to drop a mayoral project or two and face up to our responsibilities now and not kick them for touch. Instead the Mayor prefers to pretend it’s not happening and would rather pass the crippling cost onto future Aucklanders and not let it get in the way of his big spending vision.

“Most ratepayers would’ve presumed the former councils would have ring fenced significant amounts of money and handed it over to the new Auckland Council given this issue is not new and the need for some major financial provision has long been accepted. Let’s not forget that the problem was officially acknowledged back in 2004 with the introduction of more stringent Building Act. Ratepayers will be surprised eight years on that there are not some serious financial reserves already in the council kitty. But no, we’re going to put it all on the tab and make someone else pay for it, and not let it spoil the Mayor’s fun!”

“It’s a terrible legacy to leave future Auckland property owners with but that’s what this Long Term Plan proposes,” says Cameron Brewer.

Ends

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