Auckland City Council
Media release

16 September 2009

Leaky home settlements a heavy burden for Auckland City Council ratepayers

The settlement of weathertightness claims cost Auckland City Council ratepayers more than $11m in the last financial year.

A report to today’s Finance and Strategy Committee outlined weathertightness –related settlements in 2008/09 cost $11.4m, with a further $3.2m for professional fees, to total $14.6m.

In the 2007/08 financial year, the council paid $23m in settlements ($19.6m for claims and another $3.4m for professional fees).

Committee chair Councillor Douglas Armstrong welcomed the Government’s recent move to consider and discuss the weathertightness issue by entering dialogue with councils and home owners.

“We’re hopeful a solution can be found which sees settlements jointly funded between councils, the Government, and affected home owners. This would allow time, effort and funding to be directed to repairing homes rather than lost in litigation and legal squabbles,” says Mr Armstrong.

“This is one of the most significant issues for homeowners nationwide, and as a responsible council we would like all parties involved to financially contribute.

“The council has made appropriate provision for claim settlements in our 10 year plan, but it is at a considerable long-term cost to our ratepayers

“It is encouraging that the Government is engaging with councils on this issue, and we’re hopeful a workable solution for affected homeowners is forthcoming.”

(Ends)

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