Councils cite confidentiality to clam up on leaky building payouts

By BERNARD ORSMAN

Auckland, North Shore City and Rodney councils have released details of 15 unresolved claims for leaky buildings with a total damage bill of about $2.7 million.

But Manukau and Waitakere councils have refused to detail claims for privacy and commercial reasons.

This flies in the face of the Hunn report into the leaky building crisis - chaired by former State Services Commissioner Don Hunn - which urged councils to be open and pool information about claims so steps could be taken to build better homes.

When the Herald requested details under the Official Information Act from nine councils of past and present claims, most reported they had settled cases out of court with confidentiality agreements.

The request did not cover private building certifiers, who are not subject to the Official Information Act.

At Auckland City, chief executive Bryan Taylor said the council had received 53 claims since 1990. Of these 35 had been settled and confidential payments had been made to 20 home-owners at a cost to ratepayers of $1.1 million.

North Shore City secretary Peter McArthur said the council had received seven claims for leaky buildings since 1996. Four had been settled by plaintiffs with confidentiality agreements for a total of $249,500, of which the council's share was $49,938.

Rodney District Council spokesman Mark Fenwick said the council had settled four claims out of court since 1998 at a cost to ratepayers of about $56,000.

The three councils then outlined the unresolved claims with details of alleged negligence by council officers, building problems and damage costs.

The biggest claim by far was from the body corporate at the Quest apartment-hotel tower in central Auckland, which is being repaired at an estimated cost of $700,000.

It is alleged that Auckland City was negligent in areas including failing to detect design faults in the balconies and failing to alert contractors to inadequate down-piping, frame joints and flashings.

The council, which is joined by other parties in nine of the 10 unresolved claims, is defending all of the cases.

On the North Shore, Mr McArthur said the council's insurers were discussing settlement options with the owners in all three unresolved cases.

Manukau City Council has received 14 claims for leaky buildings since 1998. Last month, Mayor Sir Barry Curtis said he was unaware of any problem buildings that had been signed off by council inspectors.

Acting city manager Dr Kathy Garden released only sketchy details, citing privacy and the need to conduct negotiations without prejudice for keeping ratepayers in the dark.

The council had six unresolved cases, she said.

Waitakere City has three unresolved claims but legal services team leader Yvonne Donaldson refused to name the claimants for privacy reasons or divulge the value of each claim.

Hamilton City Council administration manager Michael Hall said the council had been involved in only one leaky building claim, which had been settled with a confidentiality agreement.

In Tauranga, council chief executive Stephen Town said the council had not received any claims.

Papakura and Franklin district councils had each settled one claim and had none outstanding.

* If you have information about leaking buildings,
email the Herald or fax (09) 373-6421.

Further reading
Feature: Leaky buildings

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