Compulsory licensing for builders

By HELEN TUNNAH deputy political editor

Builders will have to be licensed and some building methods and designs may be banned under a new law to combat the leaky homes crisis.

The review of the Building Act will also ensure a tougher building code will be enforced to make sure new homes are sturdy, safe and do not endanger anyone's health.

Commerce Minister Lianne Dalziel also hinted yesterday the law may yet be strengthened to provide protection against developers for home owners and contractors.

A Herald campaign revealed that thousands of New Zealanders have been affected by leaky homes syndrome and have faced extensive repair bills after their near-new houses were found to be damp, rotting and growing toxic mould.

It has been estimated that the package of measures would increase the costs of dwelling construction by approximately 2.9 per cent.

The Government set up a mediation service for affected homeowners, and so far 991 claims covering 2156 dwellings have been registered. However, many affected homeowners, unhappy with the mediation offer, are pursuing private legal action against developers and also territorial authorities whose staff issued building consents.

Ms Dalziel said the leaky homes problems had been the catalyst for the new law.

She said the legislation would focus on better building controls and regulation of the building code.

There would be more reliable building inspections, and the licensing of building practitioners would increase competency. "For my part, I am continuing to look at the role of developers and whether there are sufficient protections for both consumers and head contractors."

That may affect developers who set up different companies for each site, but who then wind up those companies - transferring assets on but leaving debts behind - if the development runs into financial difficulties.

Master Builders' Federation chairman Kevin Stanley said he believed builders would welcome licensing and was proud of the high level of skill in the industry.

"The federation is pretty supportive of where the Government is going," he said. "There are only a few practitioners out there who are dragging the good ones down."

But the federation told the Government it also wanted tougher regulation for building companies.

"You can have the best job in the world but that's not going to help the person whose house doesn't get finished because someone has a lack of business skills."

The new law will replace the 1991 Building Act and expressly state that design and construction standards are important in meeting building regulations. Any material, construction method or design which might cause a building to fail can be banned.

It will also put in place the mechanisms for folding the Building Industry Authority, accused of not acting quickly enough to prevent the leaky homes crisis, into a new Government department.

The new department's chief executive will oversee the drawing-up of a new building code, which must be completed within two years of the new law being passed.

The crisis

* An inquiry found leaky home repair bills could reach $240 million.

* Estimates from independent building inspectors said the cost could top $1 billion.

* Poor design and construction and the use of untreated timber in house framing have been blamed for some of the problems.

* Homeowners have also complained there has been too little monitoring of building standards.