Owners told they face long battle over leaky buildings

By ANNE BESTON

Plenty of advice but few satisfactory solutions were offered to grim-faced owners of leaky buildings who turned up for a meeting in Auckland yesterday.

More than 150 homeowners packed an upstairs room in a Mt Eden pub for the National Party-organised meeting to discuss the multimillion-dollar leaky buildings crisis.

Homeowners listened attentively while they were given advice on everything from building standards to the health effects of toxic mould, but for many it was the Government they wanted to hear from.

"We want compensation, that's the bottom line," said one man, while another said the Government should "cough up the money".

Greg O'Sullivan, founding director of leading leak-investigation firm Prendos, held out little hope that the Government would come to homeowners' aid.

"It's going to be a hard, litigious trail and it's going to be sad for everyone and they will not get their money back," he said.

Speaking after the meeting, Mr O'Sullivan said the crisis had taken a huge toll on families.

"People's lives have been turned upside down, they have lost all their savings and marriages are under strain."

John Wilson, a 37-year-old transport manager, asked how everyone involved in building shoddy homes was able to avoid legal responsibility.

"Every other piece of legislation seems to have a liability or responsibility attached to it," he said.

"But with this everyone just seems able to dodge it. Everyone who is an expert in this field has suddenly gone to Australia once there's a problem."

Mr Wilson told the Herald he bought a $615,000 Grafton Rd townhouse two years ago with an agreement from the developer that the leaks would be fixed.

Mr Wilson did not know the leaks were part of a much wider problem. Since then part of the ceiling had fallen in.

Two years on, the developer was telling him to talk to the project management company and the project management company was telling him to talk to the developer. Repairs could cost $100,000. "I just don't see how they can contract out of their liabilities. It just doesn't seem right," he said.

During the meeting builder Norman Portman said there had been a "dumbing down" in the industry. Builders had taken shortcuts because it was the only way to make a living.

If treated timber were used instead of untreated, prices would go up, he said.

Lawyer John Carter said there was a long list of people who could be sued by owners, including developers, project managers, councils, builders and even sub-contractors.

But National MP Richard Worth advised owners to put their case to the parliamentary select committee investigation instead.

Internal Affairs Minister George Hawkins last week announced a special select committee inquiry into the crisis.

Mr Worth and fellow MPs Wayne Mapp, Pansy Wong, Judith Collins and Gerry Brownlee also called on the Government to set up a "fast-track dispute resolution" panel whose findings would be binding on both parties. Mr Mapp said an independent arbitration process would help stop thousands of cases clogging up the court system.

Mr Hawkins said he would not comment on the proposal but would hear the MPs out if they came to see him.

Submissions to the select committee close on October 21.

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Further reading
Feature: Leaky buildings

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