The Government has introduced a new offence for negligent building inspectors after the deadly Loafers Lodge fire, as well as larger fines for property owners breaking the rules.

The fire in May killed five people and injured 20 others, who were all living at the hostel in Wellington.

A proactively-released Cabinet paper from August said the fire highlighted concerns about the lack of compliance with the Building Warrant of Fitness (BWOF) regime.

It was agreed building owners who fail to supply a BWOF or display one will be fined $1000 instead of $250.

Independent qualified persons, or inspectors, are responsible for checking a building’s safety systems and issuing a BWOF.

The Government has decided to introduce a new offence for inspectors who negligently issue compliance certificates.

The penalty will be fines of up to $50,000 for an individual and $150,000 for a body corporate.

Building and Construction Minister Megan Woods said these were initial changes that could be made to better ensure the safety of New Zealanders living in boarding house-type accommodation.

“While we are still waiting on official reports, such as from the police and Fire and Emergency New Zealand, Cabinet has decided to make some ‘no regrets’ changes that make sense to improve the operation of the Building Warrants of Fitness system.”

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Housing Minister Megan Woods during Question Time at Parliament in Wellington on May 30, 2023. Photo / Mark Mitchell

The Herald has previously revealed fire safety concerns were raised after an inspection of Loafers Lodge in March 2018 found “a number of non-compliances”.

These included mattresses and rubbish bags being stored in escape routes and fire doors being wedged open. A swipe card access system had also been installed without building consent.

An opening or hole between the hostel and an adjoining retail premises was also discovered, meaning there was no fire separation.

A senior Wellington City Council compliance officer told the property manager she had supplied the council with false or misleading information about the state of the building.

A notice to fix was issued, but the deadline for complying with it came and went.

By November 2018, the officer was threatening to issue a dangerous building notice, meaning the building would have to be evacuated. Meanwhile, the hole between the hostel and retail premises had been filled in, also without building consent.

Correspondence released to the Herald showed the situation remained unresolved by July 2019. It’s unclear when these problems were eventually sorted out, but Loafers Lodge was most recently issued with a Building Warrant of Fitness in March of this year.

The Ministry of Business, Innovation and Employment (MBIE) has identified 70 buildings across the country that are similar to Loafers Lodge in that they are three storeys high or greater, provide boarding house accommodation, and do not have an automated sprinkler system.

About two-thirds of these buildings are located in just three council areas - the Auckland Council, the Queenstown Lakes District Council and the Wellington City Council.

Compliance and investigation national manager Brett Wilson said a joint operation with councils to audit boarding houses is under way.

“Findings from the completed visits will be collated in November. The Fire and Emergency NZ report and police report, combined with the boarding house inspection’s findings, will be used to make recommendations on improving fire safety measures for boarding houses.”

Acting Wellington Mayor Laurie Foon said the council is glad the Government is toughening up enforcement.

“While officers are still working through the details, the council is generally supportive of the Government’s review of legislation and regulation in this area.”

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.