The Minister of Building and Construction denies the Government is set to receive a $2 billion windfall from repairs to leaky homes.
An independent report into leaky homes for the North Shore City Council says for every dollar spent on repairing a leaky home, the Government will gain 25 cents in increased revenue from GST and tax on other transactions involved in the repair.
North Shore mayor Andrew Williams says the figures is a conservative estimate.
Mr Williams says the research was undertaken in the wake of abandoned negotiations late last year between the six most affected cities and the Government about a rescue package for those with leaky homes.
However, Building and Construction Minister Maurice Williamson has released a Treasury briefing which says expenditure on repairing leaky homes is likely to have no impact on overall GST receipts.
Mr Williamson says any effect would be marginal at best. He says the leaky homes repairs would crowd out other building and construction work which would otherwise have taken place.
