Labour fears for leaky homes

Labour MP Phil Twyford fears the new Super City will abandon leaky-house victims and escape claims worth millions of dollars.

But Local Government Minister Rodney Hide has flatly rejected this and says the new council will take on all the old councils' liabilities as well as assets.

Via RiskPool, which insures 82 councils, local authorities are paying millions in compensation to leaky-house victims. But Mr Twyford said that could all stop soon and he is particularly worried about victims whose claims for leaky buildings will be based on certifications by axed councils but whose problems will not have been detected when those councils are disbanded.

"Some people in local government say that when the current local territorial authorities were established in 1989, they were often very reluctant to accept liability for problems that had occurred under the old councils."

The new Super City law says all assets and liabilities of the old councils will pass to the new structure, he said.

To read the full NZ Herald story  click here

Posted: 16 Jul 2009

News articles