Hunn to chair leaky homes mediation service

11.45am

The Government has named the group of experts who will set up the mediation service for owners of leaky homes and says hearings are intended to start before Christmas.

Former State Services commissioner Don Hunn is chairman of the overview group and its members are Tomas Kennedy-Grant, a mediator, arbitrator and legal adviser, Ian Bond, an engineer, David Kernohan, an architect, and Brian Roche, a senior partner in PricewaterhouseCoopers.

Internal Affairs Minister George Hawkins said the group would start work today and would take about a fortnight to develop a framework and terms of reference.

He said the ministry would draw in a range of other assistance and the project continued.

Mr Hunn was one of three authors of a report on leaky homes, commissioned by the Building Industry Authority and released on September 18.

It said there was clear evidence of a significant and growing leaking home problem and warned it could lead to a $240 million repair bill.

Since then it has been revealed the problem is nationwide, and that repairs could cost significantly more than estimated.

The National Party, which has organised four public meetings and opened a website for affected homeowners, has suggested the total could reach $3.8 billion.

Rotting houses have been reported from Auckland to Southland, apparently the result of poor construction, inadequate inspection procedures and questionable materials.

The Government responded by announcing a parliamentary select committee inquiry and the mediation service, which has been given start-up funding of $4 million.

The mediation service is voluntary, described by Mr Hawkins as "the first port of call" for homeowners.

It will not have the power to make binding settlement agreements between owners and those responsible for their faulty houses, and the Government has not made clear how developers, builders and others can be made to participate if they do not want to.

The Government's position is that it is not liable, and that homeowners should consider legal action if mediation is not successful.

Opposition parties say that would be too expensive, and want the Government to take a stronger stand on behalf of the homeowners.

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Further reading
Feature: Leaky buildings

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