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Leaky Loophole Must Be Closed

28 November 2005

Leaky Loophole Must Be Closed

New Zealand First is calling on the Minister for Building Issues to ensure that compensation payments for owners of leaky homes are adequate to cover repairs, and to close a loophole that allows owners to take the money and run.

“The leaky homes fiasco is getting more and more bloated with rot,” said housing spokesperson Pita Paraone.

“Inadequate compensation payments are causing owners to pocket the money and sell off their homes without doing the repairs, therefore passing on the problem to unsuspecting buyers.

“There is currently nothing to stop them from doing this. Unless prospective buyers get a builder’s inspection, which many apparently don’t, they remain ignorant of the problem.

“Immediate action needs to be taken to prevent further abuse of this system, coupled with a fair and fast compensation process and realistic compensation payments.

“Councils also need to take their share of responsibility for this mess. It’s disturbing that LIM reports do not necessarily detail a property’s leaky history. This should be on the LIM until the necessary repairs have been done.

“I hope that the review into the official response to leaking homes will address these issues. In the meantime, I expect some urgent action from the Minister to stop the rot,” said Mr Paraone.


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