MPs worried leaky home scheme too costly for many victims

File photo / NZ Herald

The Government's new leaky home assistance scheme is due to go before the House soon for debate, but the select committee which considered it raised financial fears for victims.

An amended version of the Weathertight Homes Resolution Services (Financial Assistance Package) Amendment Bill is back from the MPs' committee chaired by Chris Auchinvole but a commentary flagged warnings, raising doubts about whether rotting home disaster victims could even pay half the repair bill.

The committee was also concerned about the tight timeframe.

"Eligible owners of leaky dwelling houses would have to apply within five years of the assistance measures becoming operational," the committee said, adding that many may not be able to afford to opt into the scheme.

The committee said that in Auckland the council expected a maximum of 12,000 new claims could be lodged.

In the greater Auckland area, the council estimated 3301 properties had active leaky-home claims.

"We were told one of the risks of leaky buildings is that they can harbour moulds and fungi ... and are concerned with their potential impact on people's health," the committee said.

The law change establishes a 50:25:25 deal for people who own leaky homes no more than 10 years old.

If they shelve litigation, the Government will pay a quarter and the council a quarter of repair costs.

That will be the first time the Government has shared any blame for the disaster estimated by PricewaterhouseCoopers to cost $11 billion to $22 billion to fix.

"Under the provisions of this bill, owners of leaky homes who opted in would be able to take civil proceedings against other parties but would forgo the right against the Crown, the relevant territorial authority or other contributing parties," a commentary in the bill says.

Riders apply. Victims with places assessed by independent certifiers cannot use the scheme, and eligible owners woill have to apply within five years of the scheme coming into force.

By March 31, the Weathertight Homes Resolution Service had received 6390 claims lodged for 8699 properties.

Assessments had been completed for 9059 properties.

Auckland had 3355 properties with active claims.

SPLIT THREE WAYS

Leaky home law changes would mean:
* Government pays 25pc of repair
* Council pays 25pc
* Homeowner pays 50pc