Entire drug ring liable for damage to state home

Housing Minister Phil Heatley is delighted by news Housing New Zealand Corporation has won a test case seeking more than $180,000 in damages from a drug ring which manufactured methamphetamine in a Napier state house.

"The judgment is a comprehensive win for Housing New Zealand. Nine members of the drug ring, plus the state tenant, have been found liable for the damage caused by the methamphetamine laboratory. The home the laboratory was located in was so contaminated it had to be demolished," Mr Heatley said.

"The Court has taken a hard line in this case, finding that even the tenth defendant, who brought one container of an industrial solvent used in the methamphetamine manufacturing process to the property, is also liable for all the damage to the home.

"This judgment has broad reaching implications for all landlords," Mr Heatley said.

"P Labs are an issue all landlords struggle with. The civil suit Housing New Zealand has won sets a precedent which can be used by private landlords as well.

"It sends a very clear message to anyone involved in methamphetamine production. Not only do you face criminal charges for your actions, but you also face the possibility of being sued if you have damaged someone else's property.

"Housing New Zealand will now pursue the damage costs from the parties in the Napier case, and will bankrupt those parties if it is in the taxpayer's interest.

"The Corporation is also preparing a second case in relation to another drug ring. Details of that case cannot be released at present.

"These efforts clearly demonstrate that Housing New Zealand will not tolerate unlawful activities in state homes. Where illegal activity occurs and damage is done to a state home, Housing New Zealand is determined to recover the costs of damage from those responsible," Mr Heatley said.

The state home at the centre of the court case was located at 40 Robinson Crescent, Napier. It was so badly contaminated by the methamphetamine laboratory set up inside it that the home had to be completely demolished in 2004. The costs of this clean-up and the loss in value for Housing New Zealand, and by extension, the taxpayer, was around $185,000.

Nine people were convicted of various offences relating to the manufacturing of methamphetamine at the property, all of those have now been found liable for the damage costs.