Mr Hawkins said the Government would carefully consider its 20 recommendations, particularly the need for further research and better industry practice.
"The good news is that the report finds that no building constructed in compliance with the Building Code has ever been found to leak."
Last night, one building industry group predicted that the report's recommendations for tighter controls would add thousands of dollars to the cost of building a house, but others said it did not go far enough.
The three-man inquiry team, led by former State Services Commissioner Don Hunn, finds clear evidence of a significant and growing leaking home problem and warns that this country could face the huge troubles experienced in parts of Canada and the United States.
It supports testing 400 new multi-unit homes with at-risk monolithic claddings - flat outside wall coverings with a plaster finish - across five main centres to determine the extent of the problem.
The report spreads the blame evenly through the industry, attacking architects more concerned with artistic statements than sound construction, property developers with no knowledge of the industry, building project managers whose only concern is speed and minimising cost, and workers who lack basic skills and knowledge.
Councils are also criticised for pushing through building consents to cut costs, allowing "trusted" contractors to inspect their own work and covering their mistakes with confidentiality agreements.
The report strongly suggests further research into water-draining cavities in outer walls - the Canadian solution - and whether the industry should return to greater use of chemically treated timber, which is more resistant to rot.
It proposes a single home-building contract, which would make it clear who is liable for the problem, adding: "The single thread that runs through the multi-faceted building sector we have portrayed is the seeming lack of accountability."
Construction Liaison Group chairman and Contractors Federation chief executive officer John Pfahlert predicted that more documentation for contracts, more time spent by building inspectors on the job and a proposal to register builders would result in house price rises of "some thousands of dollars".
Master Builders Federation chief executive Chris Preston, whose organisation groups 10,000 of the estimated 25,000 builders, backed the proposal for more regulation of builders but warned that this would not necessarily lead to better houses.
His investigations in Victoria, where builders are registered through a state regulatory authority, showed that registration did not lead to better construction.
But Institute of Architects president John Sinclair called for more regulation, saying building industry deregulation clearly did not work and changes were needed.
Greg O'Sullivan, founding director of leaky building consultants Prendos of Auckland, said building prices would be marginally affected.
"If I was a consumer, I'd be grateful to pay another $500 to be assured that the place would not leak."
The report criticises councils for covering up their mistakes on building inspections with out-of-court payments subject to confidentiality agreements.
The report says this has the effect of hiding information from the public that could be used to fix the problem.
It says there is evidence that councils measure staff performance by how quickly consents are issued and how long an inspection takes.
"These are counter-productive incentives and promote totally wrong behaviour."
Another glaring weakness was the lack of detail councils accepted on drawings and in specifications accompanying building consent applications - particularly with regard to weathertightness.
Auckland City Deputy Mayor David Hay said the council had implemented a number of changes to the building consent process, including more inspections of high-risk developments.
Mr Hay said the council also required additional information for cladding, flashing and balcony design and had trained staff in the area of watertightness.
He said the council had 12 claims relating to leaking buildings, which made up 15 per cent of building claims.
Local Government New Zealand chief executive Peter Winder said the report was inadequate because it failed to address the issue for the people affected.
"The fact is there are people who are living in houses they don't want and can't sell. Those people whose homes are rotting want a solution, not a court case."
Mr Hawkins said compensation was a matter for the parties concerned. A spokeswoman for the minister denied a report in yesterday's Herald that the Crown Law Office was still advising the Government on this issue.
* Building Industry Authority:
Report on Weathertightness of Buildings
* If you have information about leaking buildings,
email the Herald
or fax (09) 373-6421.
Further reading
Feature: Leaky buildings
Related links
