KEY POINTS:
The leaky building crisis will cost Auckland City ratepayers $321.3 million over the next 12 years, or about 3 per cent of their rates.
The estimate, prepared by actuaries Melville Jessup Weaver, is the first time an official figure has been put on the problem causing growing angst
for councils throughout the country.
The same firm of actuaries, working for Local Government New Zealand, has put a $2.3 billion overall bill on fixing leaky buildings nationwide.
Auckland City Mayor John Banks and Wellington City Mayor and Local Government NZ vice-president Kerry Prendergast have been lobbying the Government to pay a share, but without success.
They have proposed a plan where homeowners and councils would each pay 25 per cent of the cost of repairing homes with the Government paying the other 50 per cent, less anything recouped from other parties, such as builders and architects.
Councils' contribution of 25 per cent is at the upper end of liability awarded by the courts.
Last week, Ms Prendergast said too much time and money went into legal and other costs through the Weathertight Homes Resolution Service and it was time to deal head-on with fixing leaky homes.
Prime Minister Helen Clark has said the Government has no liability whatsoever and National's building and construction spokesman, Dr Nick Smith, has offered only a limited response.
Dr Smith said National was looking at a less litigious solution and at reviewing the $100 million poured into the resolution service, so more money went into repairing houses.
The Auckland City figures show homeowners face a $514.8 million bill and other defendants $395.6 million. The city has by far the biggest problem with more than half the $2.3 billion bill.
Finance committee chairman Doug Armstrong said yesterday that it was "absolutely disgraceful" for the Government not to accept any responsibility.
The Government had set up the Building Industry Authority - the body that sparked the leaky building crisis - and had a moral responsibility to help, he said.
City Vision leader Richard Northey said there could be a substantial increase in the council's $321.3 million cost from future risks. These included an extension on the 10-year limit for people to make claims.
The council is also investigating a "name and shame" campaign for builders, architects and developers who will not take responsibility for their role in leaky buildings.
Council city development general manager John Duthie told yesterday's finance committee meeting such a campaign was an "appropriate mechanism".
