LGNZ seeking to engage Government on risk sharing mechanisms for leaky homes

“Local Government New Zealand is showing real leadership on the leaky homes issue,” says its President, Basil Morrison.

“We have been closely engaged in the issue and the implications for councils and homeowners since 2003.”

The organisation has been trying to engage Government in discussions on possible risk-sharing mechanisms to manage the ‘leaky homes’ issue. The latest example of this was through Local Government New Zealand’s submission to the Select Committee considering the Weathertight Homes Bill in October 2006, the organisation was not successful in achieving change to the current legal situation on liability.

“The recent media coverage of the Waitakere decision once again highlights the potential liability implications for councils. Local Government New Zealand is strongly against councils being adjudicated additional liability for the fallout from ‘leaky homes’ because of builders who are insolvent or no longer exist.

“We have strongly advocated that ratepayers should not have to ‘carry the can’ for a systemic failure that is not of their making. The design of the current system means in many cases it’s the local council and ultimately, ratepayers, that end up footing the bill for building work gone wrong. Independent reports and court decisions have found there is wide and shared responsibility for the failures of the past,” says Mr Morrison.

Local Government New Zealand continues to advocate for a system of proportionate liability so that each party pays only its share of responsibility. We believe this is the only arrangement that fairly reflects on the involvement of councils in the building process. We strongly believe that local government should not have to pay for the failures of private companies and suppliers.

ENDS

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