The Queenstown Lakes District Council's finance manager yesterday warned councillors legal action could be taken against it concerning leaky commercial buildings.
On October 10, the Supreme Court overturned a Court of Appeal ruling that the North Shore City Council, since amalgamated into the Auckland Council, was not liable for the code of compliance issued for the Spencer on Bryon Hotel tower.
QLDC finance manager Stewart Burns, who was also acting chief executive until Adam Feeley began last week, said it was difficult to determine the size of the problem and acknowledged the decision raised concerns.
He said since no insurance was available and current owners of leaky buildings should not have to pay, "the community as a whole" could end up paying through an increase in rates.
Mr Burns said "building practices have changed" since 2005 and if the building was completed more than 10 years prior, the council was not responsible, since there was a time limit on claims.
The leaky buildings crisis, a New Zealand-wide issue, generally related to buildings built between 1994 and 2005.
Councils in the "large metros" would likely be at the forefront of the issue, Mr Burns said.
"We need to be aware that there are moves afoot to change building processes again," Mr Burns said.
"We need to be careful that our processes are very robust."christina.mcdonald@odt.co.nz
