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Leaky home loan scheme cruel hoax

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

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