NZ local councils are feeling the bite of the country’s leaky building crisis, with ratepayers being asked to pay for a shortfall in funds to cover liability claims from mid-2002 to 2004.

Levies totalling $NZ4 million ($3.2 million) are being applied to fill the gap in the councils’ jointly owned mutual fund for the busy claims period.

Saddled with the responsibility of inspecting and approving buildings, councils are typically liable for 20-30% of repair costs. 

Many NZ apartments built in the 1990s have developed problems related to leaks due to faulty construction methods and materials. The problem will reportedly cost more than $NZ11.5 billion ($9.3 million) in total.