Statement of intent 2006/2009
Our Risk Response
The Department is committed to identifying, monitoring and responding appropriately to risks to our business at all levels. We aim to prevent, minimise or mitigate risks as appropriate.
Identifying and managing risk is incorporated into the Department's business planning and management practices and is part of day-to-day business.
At the strategic level, we seek to identify risks that have the potential to impact on achieving our outcomes. At the operational level, our business group plans identify risks that have the potential to impact on the delivery of our services.
The Department's risk management processes are still being developed. Over the coming year we will align our risk management identification, monitoring and review process with our internal audit work programme.
The following table highlights a number of risks to achieving our outcomes. Our consideration of these risks has informed the development of our strategies and capability development initiatives.
| Issue/Risk |
Response |
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Local authority and building sector buy-in to Building Act implementation
There is a risk that the outcomes being sought from implementing the Building Act 2004 are compromised or delayed as a result of insufficient stakeholder buy-in and capacity limitations.
The building and housing sector is operating at near-full capacity. The sector's capacity to participate in, implement and respond to major policy and regulatory change is limited.
The provisions of the Building Act 2004 are administered by territorial authorities. Their cooperation is necessary to effectively implement the provisions of the Building Act 2004.
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Working better with the sector
We have established a joint governance group with local government and the Building Officials Institute of New Zealand to ensure we work with regulatory partners and key stakeholders in developing, testing and implementing policy and regulatory changes.
We want to ensure:
- our interventions are practical and cost-effective
- the benefits outweigh the costs
- regulatory partners understand and work to their role in the regulatory framework
- the implementation timeframes result in a reasonable pace of change (given current sector capacity constraints).
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Respondents' behaviour arising from weathertightness claims liability
There is a risk that respondents will seek to delay resolving weathertightness claims because of the costs associated with their liabilities. |
Working better with the sector
We are engaging with local authorities and other respondents to develop a shared view on the long-run benefits of resolving weathertightness claims earlier. |
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Consumer confidence
There is a risk that consumers will lose confidence in building-related dispute resolution processes. Confidence in the weathertight homes resolution process will be further tested by delays in the settlement process.
The leaky building issue highlighted the difficulties faced by homeowners in resolving building-related disputes. Consumers continue to face significant difficulties in enforcing their rights and gaining redress when buildings fail due to problems other than weathertightness. Building and housing transactions can be complex and involve significant knowledge imbalances between suppliers and consumers.
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Better awareness and understanding
Our consumer information campaign aims to ensure homeowners and prospective homeowners are aware of weathertightness issues and how these can be addressed.
More accessible and connected services
In addition, we aim to foster consumer confidence through the improvements we are making to the weathertight homes resolution process.
More effective regulation and better building standards
The Building Act 2004 will provide more clearly defined rights and obligations, and improved building standards.
The social and economic policy implications of changes to the Building Code will be considered as part of the review.
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Housing affordability
There is a risk that rising property values in some areas (especially Auckland) place homeownership beyond the means of low- to middle-income earners. This means more families and older people are renting. |
Working better with the sector
We are working with Housing New Zealand Corporation and the Ministry for the Environment to ensure building and housing policies and regulations respond to trends in land use and urban design. We are also working to better understand the implications of policies and regulations for the supply of affordable housing. |
The built environment
There is a risk that the limited availability of land for development (especially in Auckland) and concern for the social and environmental effects of building and urban development will result in higher-density housing. It may also result in an increased focus on the role of land use, planning and other regulatory interventions in supplying and developing new housing stock. |
More effective regulation and better building standards
The review of the Building Code is actively considering sustainable development, energy efficiency, and building quality and design issues. |
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Implementing a wide-ranging reform programme
There is a risk that departmental capability and capacity constraints will compromise either:
- the implementation of the wide-ranging programme of reforms for which we are responsible, or
- the quality of our 'business-as-usual' services.
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Capability development
Our recruitment programme and investment in skills development is aimed at ensuring we acquire the necessary specialist skills, and will ensure we have the capability and capacity to deliver our core services.
We will continue to contract external resources to manage one-off or occasional peaks in workload associated with implementing reforms or new initiatives and to provide specialist skills where needed.
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