Govt Move Will Allay Concerns

The Government initiative to introduce fresh legislation dealing with the leaky homes situation through a disputes resolution procedure will allay concerns that the planned mediation service for this issue could be a toothless tiger.

Expressing this view today, the Chairman of the New Zealand Construction Industry Council, Mr John Pfahlert, said the council strongly supported the move.

"We are especially welcoming of the initiative because it speeds up passage of the Construction Contracts Bill which we are keen to see passed by Parliament because of the protection elements it provides for payments to contractors and sub-contractors on construction projects.

"The devil will be in the detail of the measure the Finance Minister proposes but in principle we're in favour of it.

"The proposed new disputes resolution process will only apply to home owners. But we would hope there may be an opportunity to extend its scope to apply to builders, materials and product suppliers and other trades.

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