Hon Maurice Williamson
Minister for Building and Construction

27 May 2010 Media Statement

Key councils support leaky homes package

Local authorities most affected by the leaky homes problem are getting behind the Government's new package, Building and Construction Minister Maurice Williamson said today.

"This package is about helping New Zealanders and their families fix their leaky homes so they can move on with their lives," Mr Williamson says.

“Seven of the most affected local authorities have voted to support the package in principle at their council meetings over the past two days.

“Collectively, these councils comprise about 85 per cent of current active leaky home claims. Because of this, I’m confident we will have the critical mass of council support needed for the package to go ahead.”

The councils that have so far voted to support the package in principle are Auckland, North Shore, Waitakere, Wellington, Christchurch, Rodney District and Manukau.

Councils have been asked to respond to the Government's offer by Monday 31 May 2010 whether they wish to participate in the scheme.

“While we don’t expect all 76 territorial local authorities to have responded formally by that date, positive responses by the most affected councils will mean that the scheme can proceed. Other councils can opt in at a later stage if they wish,” Mr Williamson says.

Under the proposed package, the Government and local authorities will each contribute 25 per cent of agreed repair costs and affected homeowners will fund the remaining 50 per cent, backed by a government loan guarantee.

"Once we have local authority support, we can continue to work on the operational detail, but the support shown by the key most affected councils this week is a promising sign," Mr Williamson says.

"It is hugely encouraging for the many thousands of affected homeowners who want to get their rotting homes repaired as quickly as possible."

The Government is aiming to have the new package up and running early next year.

In the meantime, affected homeowners can apply to the Department of Building and Housing to make a weathertight claim. If their claim is accepted, that ‘stops the clock’ on the 10-year limitation for claims.

Owners of leaky homes who would like more information should visit www.dbh.govt.nz or phone 0800 116 926.

ENDS

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