The multi-billion dollar assistance scheme for leaky home victims is called the Financial Assistance Package.

It is clear no one at MoBIE realises how funny this is.

Mr Rainey asked the Ministry of Business, Innovation and Employment for details of FAP payouts, and was shocked to discover that although 1232 victims had lodged expressions of interest by the end of September:

Only 186 homeowner agreements had been finalised by the claimants and the ministry.

35 claims were proceeding, of which 31 had received one or more contribution payments.

Only 12 had received their final payments.

The FAP scheme, started last year, is a joint Government and local council plan to help people avoid having to sue and to enable them to get their houses fixed.

Are the government having a laugh with respect to leaky home owners getting assistance? Or do they really want them to just have a FAP?

The leaky buildings fiasco is one of the worst indictments of regulatory failure in the developed world. The ongoing cost that ratepayers and taxpayers will have to bear while culpable builders and industry executives waltz off into the sunset is appalling.

It is not a good thing that billions of dollars has to be spent fixing what should have been built properly in the first place. Anyone thinking that the rebuilding process will “save the construction industry” should read up on “The Broken Window Fallacy”.

The leaky homes fiasco represents billions of dollars in lost potential investment in higher productivity. It’s a major drain on the construction sector and with some homeowners saddled with hundreds of thousands of dollars worth of rebuilding expenses, a major drain on private sector consumption and saving.

NB: For those of you unaware of the meaning of “FAP” it’s a NSFW image search.

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