Annual Report 2005/06

Part 1: Achieving outcomes

Key achievements in 2005/06

2005/06 was the first full year of operation for the Department of Building and Housing. Key achievements are described below and include major developments in our services and how we deliver them, and progress in the significant programme of reforms being undertaken in the building and housing sector. In addition to the work identified in the Statement of Intent and our Output Plan, the Department undertook substantial additional work relating to weathertightness including a full review of the Weathertight Homes Resolution Service.

Improving Weathertightness Outcomes

A major focus during 2005/06 was a programme of work aimed at:

• ensuring there is a fast and effective recovery from the weathertightness problem of the past (the 'leaky building syndrome')
• ensuring that in future all new construction is designed and built with a strong prospect of being weathertight
• ensuring that when homeowners experience building performance failures in the future they are able to obtain redress.

A comprehensive review of the overall response to weathertightness was undertaken. This included a re-design of the Weathertight Homes Resolution Service (WHRS), which provides assessment and dispute resolution services for homeowners affected by the 'leaky building syndrome'. Subsequently, the Government agreed to a suite of measures to enhance the efficiency and effectiveness of the WHRS process and improve outcomes for affected homeowners by:

• promoting early resolution of disputes, where possible
• reducing the average time for claims to be resolved
• reducing the legal and evidential costs being incurred by homeowners, territorial authorities and building industry members
• providing homeowners with an accurate and comprehensive assessment of the damage to their homes and the work needed for repair
• encouraging homeowners to begin repairs as early as possible so that the degree of damage is constrained, claims can be based on actual repair costs, and health and safety risks are minimised
• helping eligible homeowners to undertake early repairs, through targeted lending assistance to be made available through Housing New Zealand Corporation.

The Department also provided advice on further aspects of weathertightness, including:

• an initial review of the potential costs, benefits and options for home warranty insurance coverage in New Zealand, and increased availability and take-up of professional indemnity insurance within the building industry
• the identification of a set of measures to ensure non-weathertight homes are adequately and cost-effectively repaired
• an assessment of whether new dwellings are now being constructed with a strong prospect of being weathertight.

Improving Our Service Delivery

The Department has improved access to tenancy services throughout the country. Landlords and tenants are being provided with a greater range of options for how, when and where they can access tenancy services and advice.

Access to face-to-face services has been extended from 22 locations to 85 locations, giving a much increased presence in community and heartland centres. Mediators are now more mobile and new community liaison officers have been appointed to enable the Department to better connect and work with government, private and local organisations in communities.

Clients can now apply online to the Tenancy Tribunal 24 hours a day, 7 days a week through new, easy-to-use application forms. Additional resources and information are also now provided online. A new phone mediation service aims to resolve straightforward disputes within 24 hours.

Services provided over the phone have been greatly enhanced and the Contact Centre hours extended. The Department has integrated the provision of advice across all service delivery areas (tenancy, weathertightness, building enquiries for consumers, building professionals and local government building officials) through the Contact Centre 0800 numbers, providing a one-stop shop for information and advice for the building and housing sector.

The Contact Centre has also begun using the Language Line to help those with English as a second language. Callers can use an interpreter to help them while making a call so our services and advice are more accessible. Interpreters are available for 37 languages.

During the year the Department redeveloped its website, www.dbh.govt.nz, to provide a fully integrated site for the Department as a whole. The new website was launched early in 2006/07. The website was developed according to online best practice to be user-friendly and accessible for a wide range of users. It was designed to make it faster and easier for consumers and people in the building and housing sector to access a wider range of information.

Implementing the Building Act 2004

The Building Act 2004 introduces major changes for New Zealand's building control system. These are focused on improving control of, and encouraging better practices in, design and construction, and restoring consumer confidence in the sector and in the quality of buildings.

Reviewing the Building Code

All new building work in New Zealand must comply with the Building Code, which states how a building and its components must perform. The Building Act requires a comprehensive review of the Building Code, the first review since the Code was established in 1992. A final report on the review is required by November 2007. During 2005/06 the Department established the framework for the revised Code. A discussion document, Building for the 21st Century: Review of the Building Code, was launched by the Minister for Building Issues in May 2006.

Implementing the building consent authority accreditation and registration scheme

The Building Act requires territorial and regional authorities to be registered as building consent authorities through meeting prescribed standards and criteria. The Department is implementing the scheme to accredit and register building consent authorities by November 2007.

A consultation paper, Proposed standards and criteria for accreditation as a building consent authority, was released in March 2006 as part of the development of the scheme rules and regulations. Analysis of the submissions received was completed. This was the second round of consultation on standards and criteria in response to feedback and suggestions received earlier. The resulting changes provide a simpler, stepped approach to accreditation and a practical response to improving the performance of building consent authorities.

By 31 May 2006 all territorial and regional authorities had applied to the Department to be registered as building consent authorities, as required. The Department also developed a Building consent authority development guide, a resource document that territorial authorities can use to prepare for accreditation.

Implementing the building practitioner licensing scheme

The Building Act provides for a licensing system to set national standards for people who carry out key roles in the design and construction of certain building work, and to ensure those doing the work have the skills required and there is appropriate professional accountability for work done.

The Government approved the licence classes for the scheme in April 2006 and the Minister for Building Issues announced details of the scheme at the Registered Master Builders Federation conference the same month. This milestone enabled the licensing project to progress into its operational development phase.

The Building Practitioners Board was established in August 2005. The Board will play a significant role in the regime, including approving rules for licensing and dealing with complaints against licensed building practitioners' workmanship.

Product certification

The Building Act provides for a product certification scheme to enable manufacturers to have products certified as meeting the requirements of the Building Code. The Department has developed draft scheme rules and consulted with the sector. Consultation identified some critical issues with the scheme that needed to be addressed, particularly relating to liability. Work is under way on this and a revised timetable was adopted to implement the scheme in 2006/07.

Dam safety

A dam safety scheme is being developed to ensure dams are well built, that larger dams are regularly monitored, and that potential risks to people and property are minimised. The Department released a consultation paper in June 2006 on the development of the dam safety scheme. Feedback on this paper will allow the Department to develop the associated rules and regulations for the scheme. A revised implementation timetable means registration of specified dams will start once the scheme is fully implemented in 2006/07.

Earthquake-prone buildings

The Department supported the New Zealand Society of Earthquake Engineers to develop and issue a methodology and process for assessing earthquake-prone buildings, where none previously existed. The Department assisted territorial authorities to establish policies to manage earthquake-prone buildings by the statutory deadline of 31 May 2006.

Legislative Reviews

The Department has progressed reviews of the Unit Titles Act 1972 and the Residential Tenancies Act 1986.

The changes to the Residential Tenancies Act are designed to provide for more flexible and stable tenure, and to clarify and enable better enforcement of landlords' and tenants' rights and responsibilities. The Government has taken policy decisions on the review. Further work is scheduled in 2006/07, including preparing a draft Bill.

In May 2006, following analysis of earlier submissions, a second discussion document on the Unit Titles Act, Options for Change, was released. Analysis of the submissions received in response to the discussion document was completed by the end of the year and amendments to the Act will be progressed in 2006/07.

Housing New Zealand Corporation Monitoring

The Department has focused on working with both the Corporation and The Treasury to strengthen relationships and improve information and advice to the Responsible Ministers on the performance of the Corporation. This has been supported by developing a memorandum of understanding between the Department and the Corporation, and developing an output agreement between the Minister of Housing and the Corporation.

Governance Advice on Statutory Boards

The Department now provides governance advice to Ministers for 13 statutory boards (either as lead agency or in partnership with other agencies). During the year we have established or maintained relationships with these boards and provided advice on output agreements and appointments for the boards.

Registered Architects

The Registered Architects Act 2005 introduced a modern regulatory framework for architects to help ensure buildings are designed properly first time. During the year, the Minister for Building Issues approved the Registered Architects Rules 2006 to come into effect from 1 July 2006. These rules modernise the regulations by setting minimum standards of initial and ongoing competency for registered architects.

Other Achievements

The Department has paid particular attention to building good working relationships across the building and housing sector. This has provided a sound basis for the open dialogue and exchange of views and ideas so essential to ensuring the successful design and implementation of the programme of reforms the Department is leading. A wide range of stakeholder information, education, advice and guidance using presentations, meetings, consultation processes and report releases was used to initiate dialogue with stakeholders and to provide guidance. Other activities included territorial authority education project briefings and key sector group meetings to discuss building practitioner licensing and obtain input on design and application of the regime.

The Department established a joint Department/Local Government Governance Group to provide strategic advice and guidance on aspects of the Building Act directly impacting on local government. Developing this group was an important step towards building a closer working relationship with local government and recognising their role as a regulatory partner.

The number and complexity of determinations issued by the Department under the Building Act increased during the year. A number related to weathertightness issues, and several determinations raised complex questions about fire safety systems in high-rise apartment buildings.

Several strands of work associated with implementing the Retirement Villages Act 2003 were completed, including Cabinet approval of the revised fees for the registration of retirement villages and completion of the dispute regulations.

Complexity and Scope of Work

The complexity and scope of work being undertaken, particularly the building sector reforms, has meant that, following consultation with the sector, further work has been required. This work will address critical issues raised and ensure practical, workable solutions are developed, and that phasing of changes is realistic and achievable. This has necessitated some adjustments to timeframes for delivery of outputs in areas such as product certification and dam safety regulation.

In addition, some work has been rescheduled where other activities have been identified as higher priority.

Back to top