PRESS RELEASE

Councillor Resigns Over leaky Buildings

Councillor Douglas Armstrong former Chair of Auckland Council’s Finance Committee has resigned from Council’s Weathertightness Working Party citing a fundamental disagreement with the Mayor and Council leadership over its policy and lack of action on Auckland’s leaky home crisis.

“I believe that a much stronger stance should have been taken by the leadership of the city with government over this matter, given the magnitude of the financial impact on the city and in respect to its duty to ratepayers and citizens” he said

He went on to say:

“I believe that the importance of this matter and its likely financial impact on the city has been greatly underestimated by the leadership of the city and this has meant that the issue has not been addressed with the urgency it deserves. Auckland City will be affected far more than any other local authority in NZ with total expenditure quite likely to be many times that outlaid on any Council project ever. The research, strategising and Council attention to the problem I feel has not reflected this.

"I believe the magnitude and range of the city’s possible potential financial liability has not been clearly and frankly disclosed to our different stakeholders. These obviously include ratepayers but also current and potential leaky homeowners and probably government, who I feel have a right to know for a variety of differing, but equally important, reasons. I deplore the confidentiality that has been given to the matter justified (very wrongly in my view) by the argument that if claimants know what Council has budgeted they may claim more.

"I believe the adversarial stance taken by Council against claimants in individual cases is unfortunate in that in many cases these people are innocent parties whose lives have been adversely affected by their situation, sometimes horrendously. This approach may be in the best financial interests of the city but it runs counter to our other role, which is to assist our citizens with what amounts to a “class” problem.

"I believe that we must disclose, indeed even publicise, to potential leaky home owners the effect of the strict application of the 10 year limitation clause on their ability to claim - even if it affects Council financially

"I believe the joint and several liability of Council (where Council is “last man standing” when other defendants disappear) has far reaching implications for Council’s building inspection and certification regime that will see a huge increase in compliance and insurance costs to new home builders that has not yet been fully understood or canvassed by Council or government

Finally and most importantly, I believe that the Government should assume a significant proportion of the costs associated with the leaky building claims through the action and or inaction of its then agent the BIA. I have always considered that there are huge moral, financial and significant legal arguments for Council to have adopted a very much stronger stance with government to get them to contribute substantially beyond their current level. The Council leadership have chosen not to do this – quite wrongly in my view. Government have adopted an aggressive legal stance on defending their liability - we should have reciprocated, because with the facts in the public domain the “court of public opinion” would have been on our side”

Mr Armstrong said that he felt strongly that the public need to be fully informed about all facets of the leaky building problem the city and its citizens face. He requested that the Mayor and Council leadership open the books on the whole leaky homes crisis which had the potential to dramatically affect rates in the future.

If Citizens and Ratepayers have a majority in the next Council all information would be made public he said.

ends

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