Leaky building settlement: Why Napier City Council won't say how much it could cost you

The Humber St settlement is subjected to a confidentiality agreement and the amount will not be disclosed. Photo / File

Napier City Council is planning to fight for legislation which would prevent councils becoming embroiled in cases of shoddy building work.

A claim relating to the Waterfront Apartments on Humber St has been settled by negotiation between the parties in a manner which is satisfactory to all parties. The terms of settlement are confidential.

At a meeting on Friday, councillor Tania Wright asked whether the council would take a remit to the Local Government conference, which pushes central government to change liability laws.

CEO Wayne Jack confirmed it would.

Mayor Bill Dalton said there would likely be support for the remit from other councils across New Zealand.

There has been some controversy around the amount the Napier ratepayer is paying the case of the Humber St settlement, however it avoids a settlement being set in regards to the second case.

Councillor Annette Brosnan asked whether it was fair to say that not disclosing the settlement amount was better for ratepayers, because no precedent would be set.

Dalton said that was a fair assessment of the situation.

Questions were also raised over whether council could sue the construction company involved in the Humber Street Case.

Councillor Keith Price said he felt the construction company should be sued if it was not liquidated.

"I find it quite disturbing that the ratepayer had to bear the brunt of this."

However, as the settlement reached is considered to be "full and final" council is unable to take action against the builder.

Price said council needed to be pushing for the remit.

"People just carry on working who have done really, really shoddy work, and it shouldn't happen."