NZ firm fined $37,500 for quake-prone building

Prosecution is the first of its kind in New Zealand

NZ firm fined $37,500 for quake-prone building

Insurance News

By Krizzel Canlas

In a first of its kind in New Zealand, a company has been fined for failing to complete strengthening works of its earthquake-prone building.

According to the Hutt City Council, Alura Ltd was fined $37,500 after pleading guilty to one charge under the Building Act. This is the first prosecution of its kind in New Zealand. The charge carried a maximum fine of $200,000.

In 2008, the council issued a notice to the company, which was, reportedly, followed by years of repeated attempts to get it to strengthen the building to a safe standard. The building is at 307 Jackson Street, located within the Jackson Street Heritage Precinct in Petone, Lower Hutt.

In his sentencing decision, the Judge described Alura’s failure to strengthen or demolish the building for almost a decade as “egregious.” He said the sentence reflects the risk the building poses 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.

“The defendant has continued to generate rental income from residential tenants, who have been put at risk by the defendant’s non-compliance,” he said in his decision.

Council divisional manager of environmental consents Helen Oram, meanwhile, said the Judge shares the council’s overriding concern for the safety of Alura’s tenants, those visiting the building and pedestrians passing by.

“As a nation, we learnt some harsh lessons from the Christchurch and Kaikoura quakes, and local authorities and property owners need to keep these lessons top of mind,” Oram noted.

“One of the council’s main aims when taking this prosecution was to send the message to other building owners, who might be thinking about dragging their feet on earthquake strengthening, that they need to think again.”

 

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