Building Industry Authority swallowed up

By ANDREW LAXON

A new Ministry of Construction is being considered as the future home of the Building Industry Authority - although the Government officially remains cool on the idea.

Commerce Minister Lianne Dalziel announced yesterday that the Building Industry Authority, which failed to respond to the leaky buildings crisis for four years, would be abolished as a standalone organisation from next year. It was likely to become part of the Ministry of Economic Development, which already supervises the authority's work.

Lianne Dalziel said the public expected the Government to deal with the authority's failure to react to the leaky homes crisis, but the "arm's length relationship" meant ministers had little direct influence.

Putting the authority into a Government department made it directly accountable to a minister and therefore the public.

The restructuring would be introduced in a building reform bill by July - which could include other changes, such as compulsory insurance and registration for builders - and was likely to become law by early next year.

She said the administrative change would not prevent home owners from suing the authority and was not designed to do so.

She also played down rumours that the authority could become part of a new Ministry of Construction, which could also cover housing, and might even have its own minister.

"There have been some people within the industry who have called for that and others who have fondly recalled the old Department of Works.

"I don't think we could build a sufficiently strong government department out of the BIA because that would have the disadvantage of the size of the BIA at the moment. So I'm really looking at existing Government departments."

However one source later insisted a new ministry and minister of construction was a possibility.

Support remained for a ministry that would bring together the best technical experts across a range of disciplines - something the authority desperately lacked.

Another source suggested it was telling that the announcement did not specify which department would take the authority under its wing.

National's housing spokesman Wayne Mapp attacked the solution as socialist, old-fashioned and likely to tie builders up in bureaucracy.

He also released copies of the authority's 2001-2002 business plan - sent to Internal Affairs Minister George Hawkins in July 2001 - which said the authority was investigating whether "any failures of chemical-free timbers or of weathertightness have occurred in buildings constructed in accordance with the Building Code".

Mr Mapp noted that Deputy Prime Minister Michael Cullen had said the Government was not interested in "corpses" over the scandal.

"Well, we have a cemetery of corpses in George Hawkins, Bill Porteous and now the BIA."

Construction Industry Council chairman John Pfahlert also criticised the plan, saying the structure might improve political accountability but it created other risks.

Technical decisions on building materials and systems, which should be based on technical and scientific advice, could be influenced by politics.

However the authority's acting chief executive Richard Martin welcomed the change. He hoped it would allow the authority to employ more technical experts instead of dealing with administrative issues.

More controversy is expected next week when the authority announces proposed changes to the way many houses are built to stop further leaks. It is expected to propose banning untreated timber in all areas exposed to moisture and insist that plaster-style wall finishes (known as monolithic claddings) are separated from timber wall frames, so water can drain away.

Builders will be allowed to suggest alternatives to the wall cavities, although many councils are insisting on them already.

Many builders and home owners have also switched to treated timber already. One source estimated 80 per cent of sales were now treated H1 (the lowest protection level). A year ago, before the Herald revealed the scope of the leaky building problem, about 80 per cent of sales were untreated.

The story so far

* The Building Industry Authority was created in 1992 to oversee the building sector. Dr Bill Porteous became its chief executive in 1998.

* Despite four years of warnings, Dr Porteous and the authority failed to respond to the leaky buildings crisis. Some home owners are now suing the authority for negligence.

* Dr Porteous stepped down as chief executive two weeks ago but remains on the authority payroll as a policy adviser.

* From next year the authority will no longer exist as a standalone organisation.