KEY POINTS:
The bill to ratepayers for the leaky building crisis is $320 million over the next 12 years, Auckland City Mayor Dick Hubbard revealed at the first mayoral debate last night.
Mr Hubbard was responding to his arch-rival John Banks, who claimed the figure was between $350 million and
$500 million and being kept from ratepayers.
After the debate, Mr Hubbard said a professional assessment by an actuarial company had assessed the possible liability to ratepayers over the next 12 years at a medium figure of $320 million if there were no changes to the system of settling claims.
"It's a huge liability. We have got about 50 per cent of New Zealand's problem in Auckland City. We are carrying the brunt of it and it does concern me greatly."
Mr Hubbard said the council had built up a fund in its 10-year financial plan that would come close to meeting the $320 million figure without the need for further rate rises.
Two problems had come through over the past six months. First, all monolithic houses would eventually leak at some stage. Second, a lot of houses were only starting to show leakage after the 10-year cut-off period for assistance.
Mr Banks and the centre-right Citizens & Ratepayers ticket have been working up the leaky building issue at the local body elections. C&R councillor Doug Armstrong, who has been privy to the figures but sworn to secrecy, resigned last month from the council's weathertightness working party.
Mr Swney said it was disingenuous for Mr Banks to raise the leaky building crisis now when the size of the liability was known during his term.
In an Official Information Act letter to Mr Banks last month, council chief executive David Rankin said that up until June this year the council had been cited as a party in 375 claims and settled 191 at an average cost of $92,000, or $17.6 million. When legal and expert costs of $4.45 million were added, the bill to date was $22 million.
Unlike the feral war of words during the 2004 debates, last night's opening debate, hosted by the Gay Auckland Business Association, was tame and good-humoured. Other mayoral candidates to attend were Heart of the City chief executive Alex Swney, adult entertainment businessman Steve Crow, first-term Labour councillor John Hinchcliff and activists Lisa Prager and Coralie van Camp.
The leaky building bill, on top of a $1.3 billion borrowing programme, 37 per cent rate rises over the next three years and water price gouging would send Auckland broke, Mr Banks said.
"If you vote for me, you will save money," Mr Banks said.
However, it was a very different Mr Hubbard from the political rookie in 2004 who came out fighting for his job last night before an audience of about 100 people. "I am unashamedly standing for magnificence, not mediocrity. If you get rid of any rate increases you get the lowest common denominator.
"We are spending $300 million on capital projects. That's almost $1 million a day and shows a city on the go. Failure to deliver is simply not an option."
Mr Swney presented himself as a new and inclusive face who would push for alternative funding sources because property rates were not going to fund the infrastructure needed to make a great city.
He quoted research showing cities with strong gay communities in the creative industries prospered. A $1.3 million events budget by the council was just not enough to support events like celebrating the gay community.
Lisa Prager, the only openly gay mayoral candidate, said the failure by previous councils not to support the Hero Parade was a disgrace - and she would invite fellow gay, lesbian, bisexual and transgender people to run the city.
Mr Crow said he believed in equality across the board.
