Council planning U-turn on poisoned properties

By ELIZABETH BINNING and BERNARD ORSMAN

The Auckland City Council is likely to stop its policy of tagging the reports it issues on potentially contaminated properties.

The move follows a week of legal wrangling, mounting public anger and signs that real estate sales are hurting over a decision to record details about old horticultural sites on any Land Information Memorandum (LIM) reports the council issues on nearly 5000 properties.

Emotions ran high at two public meetings last week after the council decided to stand by its legal advice to tag the reports, despite Environment Minister Marian Hobbs advising it not to until there was proof of contamination or a risk to health or the environment.

Hundreds of residents said the council was devaluing property prices by recording information on the reports without proof.

This week, as wary buyers start pulling out of house contracts, the council is looking to reverse its controversial decision.

At a meeting on Thursday, councillors are expected to pass a notice of motion which will halt all report tagging until an opinion from the Crown Law Office - called for by Ms Hobbs - is available in about two weeks.

Ms Hobbs has indicated she will be guided by the office and, if it so recommends, will seek a law change to ensure councils cannot tag LIM reports without proof of contamination.

Councillor Richard Northey, who drafted the motion with councillor Vern Walsh, said halting the tagging until that advice was received would give property owners more certainty.

"It is clear that the short-term worry about property values is the major concern that residents have," Mr Northey said.

That concern is already coming to fruition. Many buyers are calling on vendors to test their soil before sales proceed.

Those who do not agree to the testing, which costs between $2000 and $3000, are losing sales.

In West Auckland, where 3000 properties are tagged, one agent had two wary buyers pull out this week because of contamination fears.

Although the tags have been on West Auckland properties for up to two years, most property owners had not been aware of them because the Waitakere City Council elected not to notify residents.

The residents learned about the LIM tagging only in the past month, as news of the Auckland City Council's potential contamination was publicised.

Waitakere City Council spokesman Wally Thomas said the council would consider removing LIM tags if the minister could promise absolute indemnity to the council for doing so.