Catchpole Brent: Questions for Oral Answer — Questions to Ministers Question Time Questions to Members 
Catchpole Brent: Questions for Oral Answer — Questions to Ministers Question Time Questions to Members 
[Volume:607;Page:4500] 
12.  
BRENT CATCHPOLE (NZ First) 
 to the  
Minister of Commerce 
: In light of her reported concern to have the building industry’s problems with leaky homes resolved will she now allocate funds for a far more wide-reaching inquiry into the cases of property developers evading their responsibility by liquidating companies set up specifically for a development and thus leaving affected home owners with no course of action against them; if not why not? 
Hon LIANNE DALZIEL (Minister of Commerce) 
: 
 I draw the member’s attention to the discussion document  
Better Regulation of the Building Industry in New Zealand 
 which I launched 2 weeks ago. Reference is made on page 22 of that document to the Government’s decision to legislate for additional measures to deal with phoenix companies which was made in the context of the call for submissions on other proposals to address that very issue. 
Brent Catchpole 
: Given that the Minister is unwilling to extend the leaky homes inquiry into the shonky business of developers is it now her belief that the inquiry that has just been completed is a waste of time or will she spend some money to widen the inquiry into the activities of shonky developers? 
Hon LIANNE DALZIEL 
: Page 22 of the discussion document which has been out for consideration for 2 weeks does precisely that. The member will also be pleased to know that today I am sending a copy of the report on the Government Administration Committee’s inquiry to all territorial local authorities in this country to make sure that they do take into account the select committee’s recommendations when they make submissions on the discussion document. 
Russell Fairbrother 
: Why did the Minister tell the Local Government New Zealand workshop last week that the weathertightness issue is a symptom and that treating the symptom alone will not treat the problem? 
Hon LIANNE DALZIEL 
: There is a danger that to treat only one symptom when it is not the only symptom will leave the underlying problem untreated. A fundamental assessment of the problem which is provided by the discussion document will minimise the chance of building failure. It is better that buildings are built right the first time; then the issue of insolvent developers does not arise. 
Gerry Brownlee 
: Noting that the primary question goes to the heart of protecting the people who buy houses from those who shirk their responsibilities under the guise of limited liability I ask whether the Minister has seen or asked for any reports on how the expectations of buyers may be protected against a person’s right to operate under limited liability and is she looking at legislation that will still protect limited liability? 
Hon LIANNE DALZIEL 
: I refer the member to the announcement I made to the House in February about the insolvency law changes that we are proposing in order to deal with the issue of phoenix companies. There is also a further issue about guarantees bonds and various other matters that have been raised by the select committee and in the discussion document. I encourage all members of the House to read the discussion document and to propose acceptable solutions. 
Sue Kedgley 
: Given the acknowledgement in the report into leaky houses that toxic mould may be extensive will the Minister commit to implementing recommendations 47 and 48 which are respectively to conduct a survey to determine the extent of toxic mould in New Zealand and to provide an assistance package for homeowners suffering from health problems that result from rotting homes? 
Hon LIANNE DALZIEL 
: There is a multiplicity of issues arising out of the weathertightness issue and indeed that is one of those matters. I can advise the member that the Building Industry Authority has referred the question relating to the treatment of timber to the Environmental Risk Management Authority and we will be taking all those matters into consideration in determining the best way forward. 
Murray Smith 
: Will the Minister make a promise to this House and to all New Zealanders that she will ensure that a full investigation into the extent of the weathertightness problem will be immediately undertaken as has been unanimously called for by the Government Administration Committee in whose view that is not being done at present? 
Hon LIANNE DALZIEL 
: That draws me back to the second supplementary question I dealt with. Weathertightness is only a symptom of a much wider problem. It is correct that there are several people who want to focus attention on the past 2 years. However the rot set in well before that time frame with the hopelessly inadequate regulatory framework of the Building Act and the building code the destruction of the apprenticeship system and an inadequate system of quality assurance around products processes and designs.