ACT leader David Seymour hails government shake-up of earthquake strengthening laws

ACT leader David Seymour says he was the lone MP in 2016 who stood against the the Earthquake-prone Buildings law, which he labelled as a "costly triumph of emotion over logic".

On Monday, the government announced a new "risk-based" approach to earthquake strengthening that it said will save building owners more than $8.2 billion across New Zealand, and reduce risk from derelict empty buildings.

The rules were brought in under 2017 changes following the Canterbury Earthquakes and the subsequent Royal Commission of Inquiry.

"Nine years and billions of wasted dollars later, reason and logic are back, just in time to stop billions more that would be wasted if the earthquake law continued," Seymour said in a statement.

"Reality has proven ACT right. Empty buildings on provincial city streets, huge bills for building owners, including the government, builders and materials that could have built new buildings got tied up fixing old ones, owners were caught between heritage laws preventing demolition and strengthening works they couldn't afford.

"Today's triumph of reason and logic over emotion and populism gives hope. It shows Kiwis can solve many more problems to boot, all we need is courage."

The changes were initially brought in under the then-National government.

Labour's leader Chris Hipkins said the party would look at the detail, but overall some changes were probably needed.

"I think we were seeing that there were some areas where buildings that really didn't need remediation or didn't need complete remediation were having to have work done that was more than necessary to keep people safe.

"We're broadly supportive of the idea that we need to make sure that investment in seismic strengthening is proportionate to the risk involved."

He said however he would want to see the advice provided to the government before making a judgement on the decisions to remove Auckland, Northland and the Chathams from the regime.

'Step in the right direction' - Property Council

In a statement, the Property Council welcomed the changes as a long-awaited reset to address the flaws of the previous regime.

"The difference between 66 percent and 67 percent NBS could mean whether a building was occupied or left vacant ... ratings swung every time the rules shifted. It's no wonder tenants started demanding 80-100 percent NBS, despite the law only defining 'earthquake-prone' as below 34 percent," chief executive Leonie Freeman said.

"Today's announcement is a step in the right direction.

"The previous cost burden caused huge disruption in regional towns where remediation simply didn't stack up. Many owners faced bills in the millions, with no clear pathway forward. Instead of strengthening, buildings were abandoned, becoming derelict and putting communities at greater risk."

Safety must remain top priority - Institute of Building Surveyors

NZ Institute of Building Surveyors president Darryl August said faster works and cut costs could be a win for everyone - but not at the expense of safety.

"Safety has to remain the top priority," he said. "We need to be careful not to overlook other critical building code requirements, such as fire safety, disability access, and façade changes. The devil, as always, will be in the detail."

He said the regional changes seemed sensible, and would save money.

"But how it plays out in practice, again, remains to be seen ... We back any system that delivers faster, more affordable strengthening, so long as people remain safe inside and outside those buildings. That's the bottom line."

Reduces risk of destruction by policy - LGNZ

Local Government NZ said the changes would reduce the financial burden on building owners and promote vibrant CBDs.

"These changes will impact councils in different ways, depending on their population size. Councils like Palmerston North and Wellington - which own a lot of buildings deemed as earthquake-prone - will be significantly affected by these changes, as will low-risk regions excluded from the new EPB system entirely," Manawatū District's mayor-elect Michael Ford said.

"In Feilding, we have buildings with little-to-no value - except for the land - including Edwardian architecture that'd cost millions to strengthen under current rules. On top of that, there's the cost of renovating and change of use, which has made it unviable for many building owners to even contemplate strengthening.

"This new proposed legislation significantly reduces the risk of town and city centres being destroyed by legislation and policy rather than by an actual earthquake."

Mayors react

Wellington mayor Tory Whanau said the news was a "huge win" for her city.

"Many apartment and business owners simply cannot afford to upgrade their buildings to the current standards; you can see that reality in the empty buildings around town.

"These rule changes will save hundreds of owners from expensive repairs and focus resources on those buildings that are at the highest risk."

She said the number of earthquake-prone buildings in Wellington will roughly halve under the proposed new rules, saving building owners $1 billion.

"Officers will review what these proposed changes mean for the Capital E building, which forms part of the City to Sea Bridge, and whether its earthquake-prone status would be removed under the new rules.

"The current pause on its demolition will be extended until officers report back in the new Council term on what additional options the proposed new rules could provide to keep Capital E and the bridge in place."

Auckland mayor Wayne Brown also welcomed the changes, saying the risk of an earthquake for Auckland and Northland was less than a volcanic eruption.

"We can't expect Aucklanders to be lumped with unnecessary costs, especially now."

Brown said the previous requirement was expensive and unnecessary.

"It has been a stressful time, and these changes will be a game changer for example, for apartment owners who will now be spared the cost and financial pain of making upgrades that didn't make sense," said Brown.

"One of the most upsetting conversations I've had this term is with apartment owners who have been financially ruined by the so-called need for earthquake upgrades.

"This change is one we've desperately been needing, and it couldn't come soon enough."

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