Bob Clarkson MP
National Party Associate Building & Construction Spokesman
21 February 2008
Leaky home loan scheme cruel hoax
Labour has again failed leaky home owners, with revelations that its loan scheme has cost $650,000 to administer and has
resulted in only seven loans, says National’s Associate Building and Construction spokesman, Bob Clarkson.
“It is a disgraceful waste of taxpayers’ money that $650,000 has been spent on administering a scheme that has helped
only seven leaky home owners and without a dollar being spent on fixing the houses.”
The financial assistance scheme was announced in the 2006 Budget, promising $7.1 million in loans over two years. The
Minister at the time, Clayton Cosgrove, responded to concerns from industry that the scheme was a ‘sham’ by saying the
loan scheme would open the way for thousands to have their homes repaired.
The Department of Building and Housing has confirmed that $650,000 has been spent on developing, implementing, and
administering the loan scheme but that only seven loans, to a value of $1.44 million, have been handed down.
“This loan scheme was a cruel hoax that falsely raised the hopes of desperate leaky home owners.
“This botch-up stands alongside the appalling failures of the Weathertight Homes Tribunal. Far from resolving all claims
in two years, as promised by Labour in 2002, only 15% of the 5,500 claims have been resolved after six years.
“The madness of Labour’s bureaucratic approach to leaky homes is that it’s costing an average of $116,000 to administer
each claim resolution and $93,000 to administer each loan granted, despite the average repair costing $120,000.
“National will put resources where they belong - into home repairs, not into bureaucrats’ pockets.”
ENDS