28 July 2011

Local Government New Zealand welcomes the Weathertightness Financial Assistance Package Scheme announced today by the Government.

Under the scheme qualifying homes will be fixed on a no blame basis with central government and liable councils each paying 25 per cent of the assessed repair costs while the homeowner pays the remaining 50 per cent.

“The Financial Assistance Package offers homeowners another option as it offers up to 50 per cent of the repair costs covered by central and local government as opposed to a mediated, litigated settlement depleted by process costs and negotiation,” said LGNZ President Lawrence Yule.

The scheme will also give councils certainty as they will pay a fixed amount of the liability, which they can plan for. New legislation has also been introduced so that councils are not exposed to joint and several liabilities. Homeowners who accept the package agree not to sue their local council or the Crown, but may sue other parties such as builders, developers and manufacturers of building products and services.

“LGNZ acknowledges the leadership of the Government in addressing the issue of leaky homes and the collaborative process undertaken to achieve a resolution that will see affected homes getting fixed," said Mr Yule.

LGNZ encourages councils dealing with the issue of leaky homes to investigate the scheme and identify whether it is right for them.

ENDS

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