Leaky homes' heartbreak

Leaky home owners have slammed the Government's bailout scheme as offering no relief to those hardest hit.

Thousands of owners will get nothing, while the rest face paying almost two-thirds of repair costs.

A discussion paper from building and housing minister Maurice Williamson's office, revealed in the New Zealand Herald this week, shows the Government wants homeowners to pay 64 per cent of the costs.

Councils would pay 26 per cent and taxpayers chip in 10 per cent. Auckland mayors have not accepted the deal, and said taxpayers should stump up a bigger share.

But those who can't take a claim against their local council - thought to be about half of leaky home owners - would get nothing.

"It's going to address so little of the problem, it's just not going to do any good," said leaky homes advocate John Gray.

Gray said less than half of the estimated $11.5 billion repair bill came from homes where owners have a legitimate claim against a local authority.

The rest had their home signed off by an independent certifier, or suffered the leak more than 10 years ago.

"It's just missing the big picture in terms of the dreadful social and economic impact that it's going to have on our country," Gray said.

Even for those who did qualify, Gray said the Government's 10 per cent was "smoke and mirrors," because it came from targeted loan schemes.

The deal is cold comfort for Michael Lindgreen, whose Auckland apartment was certified by a private inspector.

"We're hugely, bitterly disappointed in the Government's so-called rescue package. We were very hopeful that they would come up with some sort of package to help leaky home owners who have nowhere else to turn."

Chris Wordsworth, who demolished his house in Torbay, on Auckland's North Shore, and started again after facing a $300,000 repair bill, said the deal was "frustrating".

His house was certified by a private inspection company, which went into liquidation.

"Everyone just washed their hands of it, and we're left with a building we paid money for that's worth nothing."

Melissa Evans is eligible for the bailout for her leaky house in Auckland's Mission Bay but said she'd rather take her chances through the courts.

Mayors of the most affected cities - Auckland, North Shore, Waitakere, Tauranga, Wellington and Christchurch - have been in talks with Williamson on the deal.

Auckland mayor John Banks said there was no agreement yet and said he couldn't be responsible for homeowners who had no claim against the council.

"At the end of the day people are going to fall through the cracks. There's a lot of people hurting and there's no single answer."

North Shore mayor Andrew Williams said the Government's contribution was "on the low side".

The taxpayer's 10 per cent was estimated to cost $777m over the next 25 years. Williams said doubling that contribution was reasonable if the cost was spread over several years.

He did not return calls.