Quake-prone Buildings Bill Clears First Reading

  • Hon Chris Penk

Legislation that will bring significant financial relief to many building owners by refocusing the earthquake-prone building system has passed its first reading in Parliament.

"Building a better future for New Zealand starts with putting the right settings in place for our cities and regions to thrive," Building and Construction Minister Chris Penk says.

"The current system for managing seismic risk in our buildings has landed owners with strengthening bills that can run into the millions. Many cannot afford the work, and buildings are falling into disrepair, because even demolition is too expensive.

"We're removing the New Building Standard (%NBS) ratings from the system, which have been used to assess how buildings are expected to perform in an earthquake. The ratings are overly broad, judging an entire building on its weakest part, and are applied inconsistently, with a building deemed safe by one engineer later classified as quake-prone by another.

"For owners unable to afford the repairs and left with an unsaleable asset, the result is devastating. The personal loss also becomes a community problem, as empty shops, apartments and community centres drain the life from main streets.

"The Building (Earthquake-prone Buildings) Amendment Bill focuses the system only on buildings that pose the greatest risk to life in medium and high-risk seismic zones. This includes concrete buildings three storeys or higher, and those constructed with unreinforced masonry.

"Buildings in Auckland, Northland and the Chatham Islands will be removed from the system entirely and will not require remediation, reflecting the lower seismic risk in these regions. This will free up funds to address challenges more relevant to locals, such as flooding and coastal erosion.

"The current system has also placed immense pressure on smaller towns with a high proportion of historic buildings lining their main streets. Many now bear earthquake-prone building notices, despite the life safety risk in communities with fewer than 10,000 residents being lower, simply because there are fewer people inside buildings or near unreinforced masonry during an earthquake.

"Under the new approach, unreinforced masonry buildings under three storeys in small and rural towns will no longer require remediation or warning notices. However, owners who wish to remove their building from the earthquake prone building register will need to undergo façade securing.

"It has been incredibly encouraging to hear from rural Kiwis who are relieved they will be able to save buildings with deep meaning to their communities and local economies. The costs they were facing were significant and often insurmountable, and these changes are expected to save provincial New Zealand around $1.2 billion.

"Building owners who are still required to carry out work will benefit from greater flexibility. Territorial authorities can grant remediation deadline extensions of up to 15 years, giving owners time to plan, invest and complete the work without the pressure of immediate enforcement.

"Overall, this more practical approach will save Kiwis more than $8.2 billion in remediation and demolition costs, keep people safe, and breathe life back into communities by keeping shops, community spaces and heritage buildings open.

"We know the safety and affordability of our buildings matter deeply to New Zealanders. As the Bill moves to Select Committee, I look forward to hearing submissions on the proposed changes," Mr Penk says.

Notes to editor:

  • Attached: Refocused earthquake-prone building system media factsheet.
  • The Building (Earthquake-prone Buildings) Amendment Bill now sits with the Transport and Infrastructure Select Committee for consideration.
  • Coastal Otago, including Dunedin, has been classified as a medium seismic hazard area and will remain within the earthquake-prone building system.
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