Leaky homes package gets support to go ahead

A milestone in the development of the Government's leaky homes package was achieved today with 'resounding endorsement' by the key most affected councils, Building and Construction Minister Maurice Williamson says.

"The Government's leaky homes package has now received the critical mass of council support needed for it to go ahead," Mr Williamson says.

"Today I was formally advised by Local Government New Zealand that all eight councils in the most directly affected communities have agreed to support the package in principle and to work with the Government on developing the operational details."

The eight councils are Auckland, Christchurch, Manukau, Waitakere, North Shore, Tauranga, Wellington and Rodney District. Franklin District Council has also agreed to support the package. 

"Collectively, these councils represent around 90 per cent of current leaky home claims. Local Government New Zealand describes this as a 'resounding endorsement' by the main affected councils," Mr Williamson says.

Local Government has also advised a further 12 councils have indicated their support in principle for the package, bringing the total number of councils on board to 21.

The other councils that have agreed to support in principle are Ashburton District, Carterton District, Kaikoura District, Manawatu District, Masterton District, Palmerston North, South Taranaki District, South Waikato District, Southland District, Waipa District, Waitomo District and Whakatane District.

"Now we have the support of the key most affected local authorities, we can continue to work on the operational details of the package. Other councils will be able to opt in at a later stage if they wish," Mr Williamson says.

"This is further welcome news for the many thousands of homeowners who want to get their leaky homes fixed as quickly as possible."

Under the proposed leaky homes financial assistance package, repairs would be funded by a 25 per cent contribution from central government, 25 per cent from local authorities, and 50 per cent by homeowners, backed by a government loan guarantee.