KEY POINTS:
The Government has a real opportunity to address a number of problems through a bold move that would bring benefits to the economy, the health of New Zealanders and the building industry - an industry that is currently on its knees - by investing in
housing stock.
The level of building consents has halved from its peak of just four years ago, and skilled builders with years of experience are going to the wall, not to mention assorted suppliers and services associated with building.
The sector's value has dropped from a level of $7 billion to one of $5 billion.
At the same time, two major issues face New Zealand housing stock.
Research shows our housing is woeful. Poor insulation is leading to ill health and poor maintenance levels to an ongoing deterioration in the housing that is available. As the economic malaise worsens, home owners will be less able to afford to upgrade their homes and maintain them to a minimum standard.
And the leaky homes crisis continues to unfold, with estimates of anywhere between 30,000 and 80,000 homes requiring remedial work that could cost an average of $180,000 each. This amounts to a staggering $5.4 billion to $14.4 billion cost that someone, somewhere, will have to pay lest these homes rot to the ground.
The Home Owners and Buyers Association of NZ says: what better infrastructural investment could there be than in our housing stock?
This would directly lead to improved health benefits - potentially saving billions on our annual health bill - and provide cash-flow through the building industry and into support trades, merchants and suppliers, and services throughout the economy.
It could improve house values in a market where values are dropping and further stimulate consumer confidence.
The highly litigious route taken by local government in defending leaky homes cases has often benefited no one but lawyers. It has has cost ratepayers extraordinary amounts in legal fees that are seemingly quite disproportionate to the cost of repairs.
And councils are increasingly being found to be liable for the great majority of remedial costs for leaky homes repairs, notwithstanding recent court cases where developers have been found personally liable.
Given the situation now facing councils, ratepayers and leaky homes owners, surely it is in both local and central governments' interests to tackle the problem head on.
Instead of paying for lawyers to lose cases, wouldn't it be better to pay for builders to fix the problem?
Clearly this would have the added benefit of providing work for builders and related trades until the economy picks up to fully engage the industry. Skills would not be lost to New Zealand.
We congratulate the new Government for considering an alternative approach to retro-fitting insulation instead of scrapping the Greens proposal outright - by calling for it to be extended beyond just state housing and into the wider community.
Above all, security - the knowledge that one is safe and secure in his or her home - would be restored for thousands of New Zealanders.
Finally, there is an increasing recognition of the need to move to sustainable building.
Once again, the enormous job of upgrading housing stock in New Zealand has the potential to become a national crusade that would help lift New Zealand out of economic disaster - and to lower energy demands in thousands of homes around the country.
Achievement of this goal would mean recognising the role of both local and central governments in providing a genuine and long lasting benefit for a key sector of the economy.
Homeowners throughout the nation would be helped, with benefits ultimately for all New Zealanders in a time of economic need.
* John Gray is president of the Home Owners and Buyers Association of NZ, a not-for-profit advocacy group.
www.hobanz.org.nz
