Council estimates cost of fixing leaky homes

From City Scene, published on 23 September, 2007

Auckland City Council estimates it may face costs of between $200 million and $360 million to settle leaky building claims.

The estimate is based on past claims, legal advice on the cost to settle outstanding claims and independent advice on the likely cost of unreported claims.

Finance and Corporate Business Committee chairperson Councillor Vern Walsh recognises there is uncertainty in estimating future costs based on historical data. "While the council has made considerable provision to settle leaky building claims, it will need to reconsider this provision, based on the revised estimates, in next year's annual planning process," he says.

The council remains concerned at the hardship faced by homeowners who have to repair their homes and is continuing to advocate to central government for a fairer solution. Mayor Dick Hubbard has requested a meeting with the Prime Minister to propose a joint central-local government approach to ensuring people's homes are repaired.