Building Officials Institute New Zealand Conference, Convention Centre, Christchurch

Speech notes

 Hon Maurice Williamson

 Minister for Building and Construction

 Building Officials Institute New Zealand Conference

 Convention Centre, Christchurch

Monday, 6 April, 2009

Acknowledgements

 Len Clapham - Chief Executive

 Ewan Higham - President

It's a pleasure to be here today.

I first want to thank you for providing me with a full and frank briefing.

It told me what I needed to know about your organisation - how you see the issues facing the sector and what you'd like to see happen to improve to the consenting system.

Let me say at the start that I acknowledge the role you play in helping to ensure buildings are safe, healthy and fit for purpose.  Everyone has an interest in seeing the building sector prosper so that it delivers what New Zealanders want - quality, good value homes and buildings.  This cannot be achieved without well-trained, experienced building professionals making timely and good quality decisions. 

You are the referees standing between builders and developers on the one hand and consumers rightly demanding greater protection on the other.

Like any sporting referee you often get criticised for just doing your job. I do not underestimate your role and appreciate how difficult it can sometimes be especially when there appears to be so much misunderstanding and even ignorance about the Building Code even among those within the industry.

Councils can get the blame for their role both at the beginning of the building process and at the end.

They can be blamed for slowing down a building project by insisting the rules are complied with and they may well come under fire years afterwards when  leaky home owners claim it is their fault their home leaks.

I know you believe the issue of liability is central to changing behaviour. So do I. That is why I am have committed to looking at what can be done in this area. 

I will come to that later. First, what is the current economic reality?

• The economic slow-down

We are meeting at a challenging time.  As we all know, growth in the building sector has slowed to a virtual stand still.  That slow-down will no doubt have an impact on your work too.

The latest consent figures show:

• The number of new housing units authorised has been falling since June 2007 and is now less than half the level it was then.

• In January, there were 812 new housing units authorised the lowest monthly total since records began in 1965.

• For the first time since June 1998 the value of consents for commercial buildings ($362m) exceeds the value of consents for dwellings ($329m).

The outlook continues to be gloomy. But I want to see a building industry ready to take advantage of the recovery when it comes and you have a crucial part to play in that recovery.

A lot has happened in the years since the introduction of the Building Act. You have experienced great change.

There may be scepticism of the benefits but there have been successes. I want to make sure we build on those successes so there are no barriers to hinder the recovery when it comes.

• The Government is looking to help improve the overall building and housing system

This means a focus lifting and maintaining skills and capability across the sector

It means completing the reform process albeit with changes.  I want to simplify and streamline requirements around licensing and also the consenting process.

This means using twenty-first century technology to make the "boat go faster"

We will do this through

• Amending the Building Act 2004 to cut red tape, drive down costs and maintain quality

This involves:

having another look at what needs to be consented, provide better information and education on the building code and show how performance standards can be met without "regulating everything that moves"

removing unnecessary building control regulation and increasing focus on information and education

support councils to work smarter using technology to do so

leveraging the same technology to reduce design and building costs - investigate the potential for an on-line national consenting system to reduce costs, and get consistency across the country.

helping consumers take better informed decisions about building their homes and choosing the products they need

simplifying building licensing rules, providing recognition for trade qualifications, making it easier to get licensed but not dumbing it down

streamlining and simplifying the consenting system to increase efficiencies and reduce regulatory costs, without compromising building quality

• The first steps have already been taken

The Building Amendment Bill

This bill will:

• streamline the consent process for house designs to be replicated on a substantial scale and streamlines the process for making minor alterations to work already consented.


• make obtaining a Project Information Memorandum (PIM) voluntary which will save time and lower building costs.

The Bill has some useful initiatives, but it is only a start and doesn't go far enough to address compliance issues facing homeowners, developers and builders. 

There's more to be done.

Resource Management (simplifying and streamlining) Amendment Bill

This bill will cut through suffocating red tape for Kiwi homeowners, businesses and farmers while safeguarding the environment.

The Resource Management (Simplifying & Streamlining) Amendment Bill is long overdue and is the biggest overhaul of the RMA since its introduction in 1991.

At a time of economic difficulty these reforms take away barriers that stand in the way of helping our country's future prosperity.

These reforms address the costs, delays and uncertainties of the current Act. They will remove slow and overly bureaucratic processes that do little for growth or the environment.

The reform package will, among other things:

• improve plan-development and plan-change processes,


• improve resource consent processes,


• streamline decision-making and


• improve workability and compliance

It will also remove frivolous, vexatious and anti-competitive objections, streamlining processes for projects of national significance

Other key priorities

• Getting more leaky homes fixed.

The Government is looking at an alternative approach to weathertightness with greater emphasis on getting homes fixed - less on process and more on outcomes.

A review to assess the size and extent of the leaky homes is underway. The results will be reported to me by June. This work will help inform decisions about how homes can be fixed quickly.

• Re-assessing risk and liability

Councils have taken a lot of the blame for the leaky homes crisis. 

It's time to look at the issue of the allocation of risk in relation to who carries what risk and how this is managed

The current joint and several liability regimes drives risk-adverse behaviour by councils because too often they are the last man standing

Developers and builders need to stand behind their work and put things right where needed.

I have asked my officials to prepare advice on:

• whether various parties are currently bearing an appropriate level of risk?

• whether territorial authorities are bearing too much risk, and whether some developers and builders are bearing too little given their ability to use shelf company structures?

• there is a question around what is a reasonable level of risk for consumers to bear. How can we improve consumers' access to good information and advice so they can make good decisions when buying or building a property?

• whether consumers would benefit from access to a greater range of options and products for managing risk such as home warranty insurance products?

Key priorities for BCAs in 2009

Accreditation has equipped BCAs with a greater understanding of your business and your capabilities.  Off this platform and in the current economic environments, you need to look for ways to work smarter and improve your efficiency, and cost effectiveness - without compromising building quality.

I would strongly encourage you to look for opportunities to work more collaboratively - sharing services, share resources and expertise across BCAs, and standardising practices.  If done right, this approach will lead to greater consistency, better decision-making, timely consenting, cost reductions and ultimately increased productivity.  

In conclusion

Your profession has experienced a lot of change which can bring uncertainty.

But change also brings opportunity.  The reforms outlined will bring greater understanding among those who seek your advice and services and restore confidence in your profession, and the quality of our building stock.

Thank you.