Home-owners must be protected from future leaky buildings

Press Release: New Zealand Labour Party

The Government must explain why it has ditched plans for a compulsory builders’ guarantee from legislation designed to help prevent future problems with leaky buildings, says Labour Leader Phil Goff.

“The leaky building crisis will cost taxpayers and ratepayers between $11 billion and $22 billion dollars - more than the predicted cost of the rebuild after the Canterbury earthquake. It has devastated thousands of homeowners who’ve had to take costly legal action against developers and builders for shoddy standards.

“The warranty would have helped protect homeowners and hold the industry accountable for any defective work. It is vital that it is included in legislation designed to prevent the problem in future.

“The Building Issues Minister Maurice Williamson previously said homes were the most valuable asset people would have in their lives and why wouldn’t they want to have some sort of guarantee? It is interesting to note he’s now gone silent on the issue. That is a cop-out.

“Half of the cost of the leaky homes problem is being met by individuals but the other half is being carried by taxpayers and ratepayers. New Zealanders have had a gutsful of bailing out the private sector, from shonky developers to finance companies. The Government must do more to protect taxpayers from having to constantly foot the bill, including the massive cost of the leaky building scandal.

ENDS