Hutt company fined $37,000 for failing to complete earthquake strengthening

Friday, 20 July 2018

The owners of 307 Jackson St have been fined $37,000 after they failed to meet a deadline to earthquake strengthen their building.

A Lower Hutt company has been fined $37,500 for failing to strengthen a residential building in Petone - the first prosecution of its kind in New Zealand.

Alura Ltd pleaded guilty in the Hutt Valley District Court to one charge under the Building Act 2004 after repeated attempts were made by the Hutt City Council to get the company to bring the building up to code.

The maximum fine for such an infringement is $200,000.

Alura was issued a compliance notice for its building at 307 Jackson St in 2008. The council last month issued a notice for occupants to vacate the building so it could be strengthened or demolished.

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In his sentencing decision, Judge Arthur Tompkins said the sentence reflected the risk the building posed to human life, the length of time Alura failed to comply with the notice, and the need to deter other earthquake-prone building owners from delaying strengthening or demolition.

Helen Oram, Hutt City Council's divisional manager environmental consents, said the sentence set an important legal precedent in New Zealand and should serve as a warning to other building owners to bring their properties up to standard.

'The fundamental issue for us is we were concerned for the risk to the tennants, their visitors and pedestrians. We wanted to make it clear that we wouldn't tolerate any delaying tactics [by building owners].'

Alura director, Lower Hutt realtor Jitesh Govind, said he accepted the court decision.

'We continue to work with our architect and engineers, and are currently applying for resource consent for a proposed solution which will strengthen the building while also preserving the historical facade.

'Due to the level of work required, the tenants were given notice to vacate the premises in May. We worked with them to find new accommodation after the council served notice.'

The successful prosecution has been noted by other councils considering similar court action.

In March, 75 Wellington building owners received extensions for securing masonry facades, of which 65 still required strengthening work to be completed, with the new-revised final deadline at the end of September.

Wellington City Council resilience officer Mike Mendonça said Friday's court decision would send a clear message to the 10 building owners yet to start strengthening work.

'We've been in touch with these guys at least once a week. They are very clear on their obligations and expectations of them.

'Whilst I'm not going to play my cards too soon, it's fair to say prosecution is one of the tools available to us that we will use.'

Building and Construction Minister Jenny Salesa, who has previously urged councils to take action, declined to comment.

National MP Nick Smith enacted the law granting councils prosecution, and was delighted a council had 'taken the bull by the horns'.

It was a positive court decision that should encourage other councils, he said.

'The vast bulk of building owners are taking their responsibility seriously … There will always be a small minority that need the hurry along of council prosecution in the courts to make sure it is happening.'