Leaky building victims welcome claims reform

Victims of the $1 billion leaky building crisis yesterday welcomed Government moves to help them but a political opponent says the changes are too little and too late.

Building Issues Minister Clayton Cosgrove and Courts Minister Rick Barker announced a series of measures to strengthen the Weathertight Homes Resolution Service which provides help for leaky building victims.

This follows the Budget announcement in May of planned amendments to the Weathertight Homes Resolution Act, following widespread criticism of the cumbersome and slow service established four years ago to provide a forum for the cases.

John Gray, the head of a group battling for help, welcomed yesterday's announcement.

"This is more good news for leaky home owners," said Mr Gray of the Leaky Homes Action Group, which is lobbying to get assistance for victims of a problem estimated to affect 15,000-plus houses and cost at least $1 billion to fix.

"This is just part of a suite of changes which will continue to be rolled out," he said.

But Nick Smith, National's spokesman on building and construction, said the changes were a year from being passed, leaving leaky building victims without the extra assistance in the meantime.

"Problems with the service have been staring this Government in the eye for two years, leaving victims hung out to dry, yet these reforms are a long way off being implemented," Dr Smith said.

He criticised the lack of provision to help homeowners with legal expenses and said it was unfair to pitch legally unskilled victims against teams of lawyers representing councils, builders and other professionals involved.

"This idea that homeowners can participate in a process where in one case they are lined up against 15 lawyers is out of cuckooland."

The changes were just tinkering with the flawed system, while claims continued to soar, he said.

Mr Cosgrove and Mr Barker said the changes would enhance consumer protection, hold building industry professionals to account and get disputes settled faster through mediation and adjudication.

Mr Cosgrove expects the amendments to become law early to mid-next year.

Under the proposed new system, councils will be bound to put Weathertight Homes Resolution Service notices on affected property files. This will let prospective buyers know if a house had been subject to a claim.

Mr Cosgrove said other legal action would not be included because any claims before the courts were not proven.

A new voting threshold is to be established for multi-unit claims. Under the system now, all unit owners must agree to take a case to the service and all must agree before destructive testing of their units is undertaken. Under the new system, permission to take a claim will be required from just 80 per cent of unit owners. Only 75 per cent of owners will be required to consent to invasive testing.

A new time limit will be set for mediation: 20 days for low-value and general claims and 40 days for multi-unit claims. This is aimed at reducing delaying tactics and provide incentives for people to act in good faith.

Adjudicators will also get more powers, including the ability to impose fines. Penalties will be issued for failing to comply with a witness summons or for intentionally disrupting proceedings.

A new Weathertight Homes Tribunal is to be established and administered by the Ministry of Justice. This is to remove criticism about advisers at the existing service having a conflict of interest, acting as advisers and adjudicators.

Mr Cosgrove said the service would continue to deal with many issues but the new tribunal would hear adjudications. "Lawyers won't like this because they won't make as much money but I don't care."

Fresh approach

* Proposals to stem the tide for leaky building victims:

* Councils must put warnings on property files.

* Class actions for multi-apartment made easier.

* Time limits put on mediation.

* Adjudicators get more powers.

* New tribunal established to hear claims.