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Shonky Property Developers Targeted

Media Release
6 August 2004

Shonky Property Developers Targeted

New Zealand First has signaled its intention to put the heat on shonky property developers.

Speaking in Palmerston North today, housing spokesperson Brent Catchpole expressed disgust at property developers who cheat by hiding behind ‘phoenix’ companies to avoid liability for defective buildings.

“These companies set up companies for specific developments, and then wind them up as soon as the properties are sold, leaving the owners with no one to sue if defects are discovered.

“They are really destroying the hopes and dreams of prospective home owners and harming the reputations of others who are a legitimate part of the building industry,” Mr Catchpole said.

“The Building Industry Authority should be retained and given the power to ensure we never again see debacles in the housing industry, like the leaky houses shambles.”

Mr Catchpole said the authority should also be able to move against the predatory operators who preyed on the vulnerability of small sub contractors in the building industry.

ENDS

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