GLENFIELD RATEPAYERS & RESIDENTS ASSOCIATION (INC)

Chairman; David Thornton

77 Hillcrest Avenue, Northcote, NORTH SHORE CITY

[09] 443 5302 email; david@kandu.co.nz mob 0274 831 825

MEDIA RELEASE 12TH June 2005

Leaky Homes Costs Must Be Funded by Central Government

[Statement from David Thornton]

The potential cost of ‘leaky homes’ compensation revealed in the Weekend Herald is another huge threat to ratepayers who are already facing substantial rate increases this year from both local and regional councils.

Central Government must bear the financial consequences of the ‘leaky homes’ scandal – it must not become yet another additional cost to already overburdened ratepayers.

When the leaky home crisis first became headline news the Government promised a fair deal for those unfortunate homeowners who faced huge costs to repair their homes.

When the builder and/or the developer, and/or the building certifier disappears, or liquidates, the council, with finances secured in law from its ratepayers, becomes the only source of compensation for affected homeowners.

It was central Government which introduced the Building Act making local councils ultimately responsible for building inspections and approvals.

But the Government failed to provide financial resources to ensure that the system was properly administered and that that ratepayers were not forced to meet the inevitable compensation claims.

This liability could cost ratepayers millions of dollars to compensate for actions over which they had no control.

Once again the call on rates to pay for costs of local council highlights the need for total overhaul of the way local councils are funded.

This whole council rates situation must become an election issue.

ENDS

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