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Annual Report 2006/07

Contents

Part 1: Achieving outcomes

Part 2: Performance information

Part 3: Residential Tenancies Trust Account

  • Report of the Auditor-General
  • Financial statements

Part 4: Additional information

  • Legislation administered by the Department
  • Sector governance
  • Quality standards for policy advise
  • Structure
  • Organisational chart
  • Service locations
  • Directory

alternative format

Statement of Service Performance

Statement of Service Performance

for the Department of Building and Housing for the year ended 30 June 2007

Residential Tenancy Services
Residential Tenancy Services
This output expense involves the administration of the Residential Tenancies Act 1986. It includes providing information, education, advice and dispute resolution services. It also involves undertaking compliance activity and administering residential tenancy bond monies.
 

Output: Residential Tenancy Advice and Guidance: Provide improved access to tenancy information and advice that meets clients' needs, including public education and targeted community and industry liaison work with:

  • groups who are at risk in the housing market to improve housing outcomes
  • industry to raise standards of property and property management
  • government and non-government agencies to achieve common client outcomes.
Actual 2005/061 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
201,2132 Forecast telephone enquiries for tenancy advice 200,000-220,000 237,744 telephone enquiries for tenancy advice were received. The demand for tenancy advice increased by 18 percent compared with 2005/06.
  Quality    
84 percent3 Percentage of tenancy advice that meets or exceeds quality standards4 85 percent 88 percent of tenancy advice met or exceeded quality standards.
  Timeliness    
7 percent Call abandonment rate for tenancy advice Not to exceed 7 percent The call abandonment rate was 6.28 percent. This is within the expected performance forecast despite the 18 percent increase in call demand.
 
Output: Bond Management: Manage bond lodgements, refunds and investment as required under the Residential Tenancies Act 1986.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
210,2075 Forecast bond lodgements 180,000-200,000 217,329 bond lodgements were received. The volume received increased by 3 percent compared with 2005/06.
210,5336 Bond refund requests 205,000-215,000 211,049 bond refund requests were processed.
183,2467 Calls for bond advice 180,000-200,000 213,150 calls for bond advice were received. The demand for bond advice increased by 16 percent compared with 2005/06.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quality and timeliness    
91 percent Percentage of bond advice that meets or exceeds quality standards 85 percent 93 percent of bond advice met or exceeded quality standards.
96 percent Percentage of bond refunds refunded correctly based on information held at the time of refund, completed within 2 days 100 percent 93 percent of bond refunds refunded correctly based on information held at the time of refund, completed within 2 days.
100 percent All bond investments made within our investment strategy criteria and within 0.25 percent of prevailing daily rates 100 percent All bond investments met the investment strategy criteria and were within 0.25 percent of prevailing daily rates.
  Timeliness    
96 percent Percentage of bond lodgements processed within 5 working days of receipt 100 percent

31 percent of bond lodgements processed within 5 working days of receipt.

There has been a reduction in lodgement processing timeliness in 2006/07. Performance in this area has been impacted as resources have been diverted to manage increases in demand and performance in more time sensitive areas (telephone calls for advice, bond refunds and dispute resolution timeliness).

There has been no significant impact on our clients from taking longer to process bond lodgements. Bond monies are banked on the day received and the lodgement processed at a later date. Lodgement timeliness improved in June 2007 and it is expected that the timeliness standard in the first quarter of 2007/08 will be achieved.

6 percent Call abandonment rate for bond advice calls Not to exceed 5 percent The bond advice call abandonment rate was 4.7 percent. The demand for bond advice increased by 16 percent in 2006/07.

1 All 2005/06 percentages have been rounded to the nearest whole number.

2 The target was revised in 2006/07. The target in 2005/06 was 200,000-250,000.

3 The target was revised in 2006/07. The target in 2005/06 was 80 percent.

4 The quality assurance framework for the provision of bond and tenancy advice defines what quality advice is, and specifies the expectations for the delivery of advice. A sample of calls is assessed against the quality standards each year.

5 The target was revised in 2006/07. The target in 2005/06 was 190,000-210,000.

6 The target was revised in 2006/07. The target in 2005/06 was 190,000-210,000.

7 The target was revised in 2006/07. The target in 2005/06 was 180,000-220,000.

Investigation and response to alleged breaches of Residential Tenancies Act and the provision of dispute resolution services
Output: Compliance: Investigate and respond to alleged breaches of the Residential Tenancies Act 1986.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Number of investigations 60-70 42 investigations were undertaken. The result is mainly attributable to the Compliance Investigating Officer position being vacant and the time taken to make a suitable appointment to this role. The position has been filled recently and it is expected that the forecast number of investigations will be met in the first quarter of 2007/08.
  Quality    
100 percent8 Percentage of compliance interventions resulting in voluntary compliance 90 percent 95 percent of compliance interventions resulted in voluntary compliance.
  Timeliness    
New measure in 2006/07 Investigations completed within 20 working days 100 percent 100 percent of investigations were completed within 20 working days.
 
Output: Residential Tenancy Dispute Resolution: Provide timely dispute resolution services that are accessible to our clients and connect with the different communities we serve.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
47,2689 Forecast volumes of Tenancy Tribunal applications 43,000-50,000 45,874 Tenancy Tribunal applications were received.
  Quality    
66 percent Percentage of applications for dispute resolution resolved out of court (excluding vacated positions) 65-70 percent 69 percent of applications for dispute resolution (excluding vacated positions) were resolved out of court.
  Timeliness    
New measure in 2006/07 Percentage of disputes resolved within 24 hours using telephone mediation 5 percent 6.4 percent of disputes resolved within 24 hours using telephone mediation.
New measure in 2006/07 Percentage of applications referred to mediation that are scheduled within 10 working days of receipt 80 percent 63 percent of applications referred to mediation were scheduled within 10 working days of receipt. There was improvement during the fourth quarter with 71 percent meeting the target, and 80 percent achieved in June. The full year target was not met due to issues that arose with implementation of the new service delivery model. These issues regarding application processing delays resulting from changes to forms and technology have been resolved.

8 The target was revised in 2006/07. The target in 2005/06 was 80 percent.

9 The target was revised in 2006/07. The target in 2005/06 was 45,000-50,000.

Residential Tenancy: provision of information to the public; and administrative support for the Tenancy Tribunal
Output: Residential Tenancy Public Information and Education: Provide information and education to consumers and providers to enable them to make informed decisions.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Number of information seminars for target landlord and tenant groups 28 A total of 29 landlord or tenant seminars were delivered.
  Quality    
Achieved Survey awareness of Tenancy Services, rights and obligations, and the use of high-quality property management practices Standard to be set following baseline survey A National Landlords Survey was conducted during 2006/07.
  Timeliness    
Achieved Assess effectiveness of information for target groups using focus groups and surveys Measure achieved Surveys of seminar attendees show that the seminars were very well received. Another series is planned for 2007/08.
 
Output: Tenancy Tribunal Administration: Provide administrative support for the Tenancy Tribunal.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
25,367 Forecast volume of Tenancy Tribunal hearings scheduled 22,000-27,000 24,297 Tenancy Tribunal hearings were scheduled.
  Quality    
New measure in 2006/07 Hearings are scheduled in accordance with guidelines and standards set by the Principal Tenancy Adjudicator 100 percent The guidelines and standards set by the Principal Tenancy Adjudicator were not met a number of times. When this happened we worked with the Principal Tenancy Adjudicator to ensure issues were addressed.
  Timeliness    
74 percent Percentage of tenancy applications proceeding to the Tenancy Tribunal have a hearing within 20 days (excluding vacated applications) 80 percent 54 percent of tenancy applications proceeding to the Tenancy Tribunal had a hearing scheduled within 20 working days (excluding vacated applications). There was improvement during the final quarter, with 71 percent of applications in June scheduled within 20 working days. The target for 2006/07 was not met due to issues that arose with the implementation of the new service delivery model, which have been addressed.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
2,761 Revenue - Crown 1,064 1,064 3,921
144 Revenue - departmental 134 150 167
14,827 Revenue - other 17,858 17,045 13,788
17,732 Total revenue 19,056 18,259 17,876
17,740 Total expenses 18,256 18,259 17,876
(8) Net surplus/(deficit) 800 - -

 

Administrative support to the State Housing Appeal Authority
Output: State Housing Appeal Authority Administration: Provide administrative support to the State Housing Appeal Authority.10
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Number of appeals 1-5 Four appeals were received and heard.
  Quality    
New measure in 2006/07 Administration of appeals meets the standards set by the Principal Member of the Authority Measure achieved Administration of appeals met the standards set by the Principal Member of the Authority.
  Timeliness    
N/A11 Hearings held within 20 working days of application 100 percent 50 percent of hearings were held within 20 working days of receipt of the application. Two of the four hearings were held within 20 working days of the application. In the other two cases the unavailability of the parties meant the hearing could not take place within this timeframe.

Financial Performance12

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
67 Revenue - Crown - - -
- Revenue - departmental - - -
- Revenue - other - - -
67 Total revenue - - -
32 Total expenses - - -
35 Net surplus/(deficit) - - -

10 State Housing Appeal Services was a separate output expense in 2005/06.

11 The result was N/A as there were no hearings in 2005/06.

12 This table records the actual financial performance of the output expense State Housing Appeal Services in 2005/06 as State Housing Appeal Services was a separate output expense in 2005/06. The State Housing Appeal Services output expense was subsumed into the Residential Tenancy Services output expense in 2006/07.

Purchase and monitoring advice for Housing New Zealand Corporation
Purchase and Monitoring Advice - Housing New Zealand Corporation
This output expense involves providing purchase and monitoring advice in relation to Housing New Zealand Corporation.
 
Output: Monitoring and Purchase Advice on Housing New Zealand Corporation
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07

Provide advice to the Minister13 on accountability documents, including:

  • Letters of Expectation
  • Statement of Intent
  • Quarterly Reports within 15 working days of receipt
  • Annual Report
Measure achieved

Advice provided to the Minister of Housing on accountability documents, including:

  • Letters of Expectation
  • Statement of Intent - advice provided on draft and final versions
  • Quarterly Reports - advice provided on four Quarterly Reports within 15 working days of receipt
  • Annual Report - analysis of, and discussion on, the draft Annual Report showed no out-standing issues. As such, feedback was provided directly to HNZC and not to the Minister.
New measure in 2006/07 Provide advice to the Minister on any matters relating to monitoring the Corporation's performance, governance advice (including board appointments), vote administration for Vote Housing and any other matters as requested by the Minister Measure achieved

Advice has been provided on a number of matters, including:

  • board appointments
  • vote administration
  • other matters as requested or directed by the Minister.
  Quality    
Measure achieved Ministerial satisfaction assessed through a structured discussion with the Minister. This will include performance on quality standards agreed with the Minister Measure achieved The Department has regular meetings with the Minister and feedback has been provided.The Minister is satisfied with the performance of the Department.
  Timeliness    
New measure in 2006/07 Advice is timely and meets the needs of the Minister Measure achieved The Department has regular meetings with the Minister and feedback has been provided.The Minister is satisfied with the performance of the Department.

13 Purchase and monitoring advice on Housing New Zealand Corporation is provided to the Minister of Housing.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
386 Revenue - Crown 485 485 385
9 Revenue - departmental 5 7 19
- Revenue - other - - -
395 Total revenue 490 492 404
389 Total expenses 464 492 404
6 Net surplus/(deficit) 26 - -

 

Sector and Regulatory Policy
Sector and Regulatory Policy
This output expense involves providing policy advice in relation to the building and housing sector in New Zealand. It includes providing policy advice on the Government's regulation of the building and housing sector (including the regulation of trades and professions operating in the sector), monitoring the building and housing sector (including the effectiveness of statutory boards), and providing the regulatory framework for the building industry.
 
Output: Sector and Regulatory Policy Advice
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Provide policy and regulatory advice on occupational licensing Measure achieved A series of policy papers provided advice on the Licensed Building Practitioner Scheme design in the course of the year.
New measure in 2006/07 Provide policy and regulatory advice on Residential Tenancies Act 1986, Unit Titles Act 1972, Building Act 2004, Retirement Villages Act 2003, Registered Architects Act 2005, Construction Contracts Act 2002, Weathertight Homes Resolution Services Act 2002 and advice on the minimum requirements for buildings Measure achieved

Policy and regulatory advice has been provided on the following.

Residential Tenancies Act 1986
A review of the Act was completed in August 2006 in concert with the development of an associated implementation strategy. The Bill was drafted in 2006/07.

Unit Titles Act 1972
A review of the Act was completed in November 2006 in concert with the development of an implementation strategy. An amendment Bill is presently being drafted. Targeted consultation with industry experts on an exposure draft of the Bill is taking place in August and September 2007.

Building Act 2004
Advice provided to the Minister on the Act included proposals to fine-tune the Act. An amendment Bill was introduced on 18 July 2007. The Building Amendment Bill, amongst other things:

  • clarifies and reorganises building consent exemptions; in particular, to ensure that weathertightness repairs are not made without a building consent
  • makes minor adjustments to the future dam safety scheme and gives dam owners an incentive to become accredited
  • helps to improve compliance with building accessibility requirements at the building design stage
  • clarifies the language and rules relating to licensing of building practitioners.

Retirement Villages Act 2003
The Retirement Villages (General) Regulations 2006, Retirement Villages (Disputes Panel) Regulations 2006 and Retirement Villages (Fees) Regulations 2006 were completed in September 2006.

A Code of Practice specifying the minimum requirements in occupation right agreements was also completed in September 2006. The Code of Practice is deemed regulations and will come into force on 25 September 2007.
     

Implementation of Part 4 of the Act that relates to complaints and disputes came into force in October 2006.

The General and Fees Regulations came into effect on 1 May 2007 by way of a Commencement Order on 28 September 2006.

The Department has promoted the implementation of the Act by producing information guides, attendance at Retirement Commission Sector Group meetings and presenting the Code of Practice to operators through a series of Retirement Villages Association workshops.

Weathertight Homes Resolution Services Act 2002
Amendments to the Weathertight Resolution Services Act 2002 were completed with a new Weathertight Homes Resolution Services Act passed in December 2006 and implemented from 1 April 2007.

The minimum requirements for buildings
A discussion document regarding a review of housing standards and existing building quality has not been issued because resources have been used for higher priority work. The focus, scope and timelines of the project are being reviewed.

Home warranty insurance
A report on costs, benefits and options for achieving widespread home warranty insurance coverage in New Zealand was completed in December 2006.Professional indemnity insuranceA report on costs, benefits and options for achieving increased availability of professional indemnity type insurance coverage for building practitioners was completed in December 2006.
  Quality and timeliness    
New measure in 2006/07 Meet our Quality Standards for Policy Advice14 Measure achieved All reports and advice have undergone peer review. In 2006 a mechanism for assessing reports and advice against the quality standards as part of the peer review process was developed. This mechanism was piloted in the Sector Policy Branch and implemented across the Department.A sample of policy advice was independently reviewed and shown to meet a good standard.The Department has regular meetings with the Minister and feedback has been provided.The Minister is satisfied with the quality of policy advice.

14 The Quality Standards for Policy Advice are set out in Part 4.

Sector, Industry and Market Monitoring
Output: Sector, Industry and Market Monitoring
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Develop a framework for monitoring and evaluating the effectiveness and performance of occupational licensing regimes in the building and housing sector by 30 June 2007 Measure achieved A framework for monitoring the effectiveness of occupational licensing arrangements has been developed. This framework will come into use once the first phase of the voluntary Licensed Building Practitioner Scheme commences in November 2007.
  Quality and timeliness    
New measure in 2006/07 Meet our Quality Standards for Policy Advice Measure achieved

All reports and advice have undergone peer review. In 2006, a mechanism for assessing reports and advice against the quality standards as part of the peer review process was developed. This mechanism was piloted in the Sector Policy Branch and has been implemented across the Department.

A sample of policy advice was independently reviewed and shown to meet a good standard.

The Department has regular meetings with the Minister and feedback has been provided. The Minister is satisfied with the quality of policy advice.
 
Output: Statutory Board Responsibilities15
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Board member appointments Number of additional Board positions established Responsibility for the Electrical Workers Registration Board was transferred to the Department from the Ministry of Economic Development in September 2006.Two members have been reappointed and a new member has been appointed. Additional appointments/ reappointments are currently under way.
New measure in 2006/07 Board member reappointments Number of vacancies that arise

The following appointments have been completed.

  • State Housing Appeal Authority - six members reappointed
  • The Board of Housing New Zealand Corporation - one member reappointed, four new members appointed
  • Electrical Workers Registration Board - two members reappointed, one new member appointed
  • Complaints Assessment Committee - four members reappointed, one new member appointed
  • Chartered Professional Engineers Council - three members reappointed, one new member appointed
  • Engineering Associates Registration Board - three members reappointed, seven new members appointed

Support was also provided to the Ministry of Health for appointments to the Plumbers, Gasfitters and Drainlayers Board, with ten new members appointed.
New measure in 2006/07 Reports on Board performance produced 4

Reports on performance of seven Boards have been provided.

  • Chartered Professional Engineers Council
  • Engineering Associates Registration Board
  • Electrical Workers Registration Board
  • Registered Architects Board
  • Building Practitioners Board
  • Housing New Zealand Corporation Board
  • Plumbers, Gasfitters and Drainlayers Board
  Quality    
Compliance with guidelines Appointments comply with Cabinet Office guidelines 100 percent of advice and papers comply with guidelines 100 percent. All appointments complied with Cabinet Office guidelines.
New measure in 2006/07 Board performance reports against output agreements 100 percent of recommendations to Minister approved 100 percent. All recommendations to the Minister were approved.
  Timeliness    
New measure in 2006/07 Appointments completed By agreed date Appointments completed by agreed date.
New measure in 2006/07 Reappointments completed By term expiry date One reappointment was made to the Electrical Workers Registration Board by the term expiry date. Reappointments to the Chartered Professional Engineers Council, Registered Architects Board and Engineering Associates Registration Board could not be made until nominations were received from nominating bodies. Board members continue in office despite expiry of their term until they are reappointed or a new appointment made.
New measure in 2006/07 Reports on Board performance produced Within 3 months of end of reporting period Six reports were delivered within the required timeframe, and one was delivered outside the expected timeframe due to the Board's delay in producing the Annual Report.

15 Statutory Board Responsibilities was an output in the Occupational Licensing output expense in 2005/06. The only comparable measure, although not directly, was 'Appointments comply with Cabinet Office guidelines'.

Ministerial Services

Output: Ministerial Services

This includes:

  • responses to parliamentary questions
  • ministerials
  • Official Information Act and Privacy Act requests.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
56 Forecast number of parliamentary questions 58-62 114 responses to parliamentary questions were provided, including four oral questions.
243 Forecast number of ministerials 340-380 494 responses to ministerial correspondence were drafted.
65 Forecast number of Official Information Act and Privacy Act requests 70-75 122 Official Information Act requests were received and responded to. No Privacy Act requests were received.
  Quality    
Measure achieved Ministerial satisfaction assessed through a structured discussion with the Minister. This will include performance on quality standards agreed with the Minister Measure achieved The Department has regular meetings with the Minister and feedback has been provided.The Department has acted on the feedback provided and the Minister is now satisfied with the performance on parliamentary questions, ministerials and Official Information Act requests.
92 percent Answers to Official Information Act and Privacy Act requests to comply with the legislation 100 percent

86 percent of responses to Official Information Act requests complied with legislation. No Privacy Act requests were received.

The variance relates to statutory timeframes. Compliance with statutory timeframes was affected by the large number of requests received, almost twice the number of 2005/06.

Work to be undertaken in 2007/08 to improve compliance includes:

  • further development and targeted delivery of in-house training on the Official Information Act
  • improvements to the ministerials servicing database to assist data capture, analysis, compliance and reporting.
  Timeliness    
100 percent Answers to parliamentary questions provided within the deadlines agreed with the Minister 100 percent 99 percent of responses to parliamentary questions were provided within agreed deadlines.Timeframes of responses were affected by the number of questions received, more than twice the number of 2005/06.
78 percent Answers to ministerial drafts are provided within the deadlines agreed with the Minister 100 percent

72 percent of responses to ministerial correspondence were provided within agreed deadlines.

Timeframes of responses were affected by the number of ministerials received, more than twice the number of 2005/06.

The ministerial servicing guidelines were applied since 1 September 2006. However, reporting applies the standards of ministerial servicing for the entire period. This has in part resulted in a negative impact on the full year reporting. The full year result was also negatively impacted on at the start of the year when the 5-day turnaround standard for ministerial correspondence from MPs was not applied.
92 percent Answers to Official Information Act and Privacy Act requests provided within statutory deadlines 100 percent

86 percent of responses to Official Information Act requests were provided within the statutory deadlines. No Privacy Act requests were received.

Timeframes of responses were affected by the large number of requests received, almost twice the number of 2005/06.

Work to be undertaken in 2007/08 to improve compliance with statutory guidelines includes:

  • further development and targeted delivery of in-house training on compliance with the Official Information Act
  • improvements to the ministerials servicing database to assist data capture, analysis, compliance and reporting.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
3,659 Revenue - Crown 5,825 5,825 5,225
17 Revenue - departmental 44 59 33
- Revenue - other - - -
3,676 Total revenue 5,869 5,884 5,258
3,356 Total expenses 5,412 5,884 5,258
320 Net surplus/(deficit) 457 - -

 

Building Act 2004 implementation
Building Act 2004 Implementation
This output expense involves implementing provisions of the Building Act 2004 with supporting regulations. It includes establishing regulatory schemes and operational frameworks, such as the building consent authority accreditation and registration scheme, providing advice and guidance on the new regulatory systems, and reviewing the Building Code.
 
Output: Building Code Review: Provide policy advice in respect of the review of the Building Code.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Release of final consultation document in anticipation of the report on the review of Building Code delivered by 30 November 2007 31 May 2007 The final consultation document was released in August 2007. The report on the review of the Building Code is on target to be delivered by 30 November 2007.
  Quality    
New measure in 2006/07 Report delivered on time and meets requirements of section 451 of the Building Act 2004 Quality measure met The report is on track to be delivered on time and will meet the requirements of the Building Act 2004.
New measure in 2006/07 All operational policy development is undertaken in accordance with our Quality Standards for Policy Advice Quality standard met

All reports and advice have undergone peer review. During 2006, a mechanism for assessing reports and advice against quality standards as part of the peer review process was developed. This mechanism was piloted in the Sector Policy Branch and has been implemented across the Department.

The Department has regular meetings with the Minister and feedback has been provided. The Minister is satisfied with the quality of policy advice.
Output: Establish Regulatory Schemes: Establish product certification scheme, building consent authority accreditation and registration scheme, and dam safety scheme.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 CodeMark scheme for product certification established by 31 March 2007 31 March 2007

The target of 31 March 2007 was not met. However, by 30 June 2007, the CodeMark scheme rules had been agreed in principle by the Chief Executive.

Outstanding work that will be completed during the 2007/08 financial year comprises:

  • the development of a formal agreement with the product certification accreditation body JAS-ANZ
  • putting in place the necessary regulations, as required by the Building Act 2004, covering the scheme's criteria and standards and JAS-ANZ's fees
  • enactment of the amendments included in the Building Amendment Bill 2007 allowing JAS-ANZ to charge fees for accreditation services on a variable fees basis, to provide for a power of suspension for a product certification accreditation body and a product certification body.

Further work will be undertaken in 2007/08 on the management of legacy certificates of accreditation issued under the Building Act 1991.
New measure in 2006/07 Scheme rules are in place for building consent authority accreditation and registration in anticipation of the Building Consent Authority (BCA) scheme being established by 30 November 2007 30 June 2007

As at 30 June 2007 the only outstanding activity is completion of regulations for registration standards and criteria, due for completionby 30 November 2007.

Work is on track to establish the scheme by 30 November 2007.

Regulations for accreditation standards and criteria were promulgated in December 2006.

Regulations for accreditation fees were promulgated in May 2007.
New measure in 2006/07 Dam safety scheme established by 30 June 2007 30 June 2007

Consultation on the dam safety scheme was completed in January 2007.

Regulations are being developed with a view to promulgation by 30 March 2008.
  Quality    
New measure in 2006/07 Regulatory schemes established on time, and in accordance with the requirements of the Building Act 2004 On time requirements met Regulatory schemes have been developed; however, consultation with the sector has taken longer than anticipated.
 
Output: Building Officials' Education: Establish national qualifications for building officials.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Our ongoing assistance in developing agreed national qualifications for building officials Standard met A national qualification for building officials is being developed by the Building Officials Institute of New Zealand (BOINZ) supported by the Department, Local Government New Zealand (LGNZ) and the New Zealand Society of Local Government Managers (SOLGM). The qualification will be sent to the New Zealand Qualifications Authority (NZQA) in August 2007for ratification.
  Quality    
New measure in 2006/07 A national qualification is developed that is endorsed by the building sector 30 June 2007 A national qualification for building officials is being developed by BOINZ supported by the Department, LGNZ and SOLGM. The qualification will be sent to the NZQA in August 2007 for ratification.

 

Output: Public Information and Education: Inform the general public about the Building Act 2004's new regulatory schemes.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Baseline awareness survey undertaken on changes introduced under the Building Act 2004 by 30 September 2006 30 September 2006 This work was deferred due to other priorities.
New measure in 2006/07 Public information and education campaign undertaken based on findings of survey 30 June 2007 This work was deferred due to other priorities.
  Quality    
New measure in 2006/07 Public information and education campaign undertaken and developed in accordance with our guidelines on professional communication Guidelines met The work was deferred.
New measure in 2006/07 Percentage increase in awareness generated by public information and education campaign (to be measured by awareness surveys undertaken in subsequent financial years) Target to be established based on baseline survey results The work was deferred.
Output: Sector Advice and Guidance: Provide advice and guidance for the building sector on the Building Act 2004's new regulatory schemes.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Information on CodeMark scheme for product certification available by 31 December 2006 31 December 2006

Information was published in the December issue of Codewords and a number of visits to stakeholders, manufacturers, importers and prospective product certification bodies were undertaken in late 2006. As outlined above, in the Establish Regulatory Schemes output, the product certification scheme provided for in the Building Act 2004 was not in place at 30 June 2007.

Appropriate guidance information will be prepared when the scheme is finalised.
New measure in 2006/07 Building consent authority scheme information available by 30 June 2007 30 June 2007 A range of advice, guidance and regulatory update information has been released to support and inform councils throughout the year. An assistance package has provided additional support and advice to councils.
New measure in 2006/07 Dam safety scheme information available by 30 June 2007 30 June 2007 Additional consultation has resulted in a new timeframe for the implementation of the dam safety scheme. This work will be completed when regulations are promulgated in March 2008.
  Quality    
New measure in 2006/07 Information provided on time, developed in accordance with our guidelines on professional communication, and meets the requirements of the Building Act 2004

On time

Guidelines and legislative requirements met

While information on progress was provided on time, some deadlines were not met as indicated above.

Additional consultation has resulted in a new timeframe for implementation of the dam safety scheme. This work will be completed when regulations are promulgated in 2008.

Financial Performance

2006
Actual

$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
71 Revenue - Crown 113 113 113
1 Revenue - departmental 27 12 1
- Revenue - other 5,135 6,574 -
72 Total revenue 5,275 6,699 114
3,262 Total expenses 5,275 6,699 4,288
(3,190) Net surplus/(deficit) - - (4,174)

 

Occupational Licensing
This output expense involves developing, implementing and maintaining registration and licensing regimes for building practitioners and electrical workers.
 
Output: Develop and Implement Building Practitioners Licensing Scheme: Design, establishment and maintenance of an occupational licensing regime for building practitioners under the Building Act 2004.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Develop regulations for all licence classes, complaints, fees and levies by 30 June 2007 Measure achieved

Regulations for all licence classes were completed. The regulations were gazetted on 24 May 2007.

Advice on regulations for fees and levies has been prepared. The regulations are expected to be progressed for completion by 1 November 2007.

Advice on regulations regarding disciplinary matters has been prepared.
New measure in 2006/07 Develop rules for selected licence classes, including competency standards and information requirements by 30 June 2007 Measure achieved Advice on rules for selected licence classes, including competency standards and information requirements, has been prepared. The rules were promulgated in June 2007 and will come into effect on 1 November 2007.
New measure in 2006/07 Make substantial progress towards developing operating processes for assessments, complaints, appeals, fees and levies by 30 June 2007 for implementation on 1 November 2007 Measure achieved

Substantial progress was made towards developing operational procedures and processes including:

  • location of processing centre functionality was determined
  • the framework for managing appeals was endorsed by the Building Practitioners Board on 7 June 2007.
New measure in 2006/07 Design and develop information technology and business support systems for end-user testing by 30 June 2007 Revised measure achieved

The Department originally designed the scheme with significant process automation. However, issues arising with the development of the system led the Department to conclude that a simplified solution with limited low-cost automation would better serve the scheme and the Department.

There are no anticipated impacts on licensed building practitioners as a result of the change in approach. The simplified solution will be ready for the start of licensing on 1 November 2007.
  Quality    
New measure in 2006/07 Regulations and rules developed meet our Quality Standards for Policy Advice Measure achieved

All reports and advice have undergone peer review. In 2006, a mechanism was developed for assessing reports and advice against the quality standards as part of the peer review process. This mechanism was piloted in the Sector Policy Branch and implemented across the Department.

The Department has regular meetings with the Minister and feedback has been provided.

 

Output: Licensing of Electrical Workers16
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity17    
N/A18 Process electrical workers registrations 1,250 1,537 electrical workers registrations were processed.
N/A Issue practising licences 13,500 16,414 practising licences were issued.
  Conduct:    
N/A
  • electrical audits
2,400

861 electrical audits were completed.

The target was not met due to difficulties experienced in reintroducing an externally contracted certificate of compliance based audit programme. In recent years only 500 certificate of compliance audits were carried out per annum in line with the Electrical Workers Registration Board's risk-based strategy. The Board asked that the 2,400 audits be conducted to ensure the risk based philosophy was still reliable.

The difficulties experienced related to delays in the tendering and contract issuing process, re-establishing systems and the availability of the applicable prerequisite certificates of compliance, as the Board has an agreement for industry self-auditing programmes with a major electrical contracting organisation.
N/A
  • telephone competency audits of registered electrical workers who have not uplifted a practising licence
6,000 6,000 telephone competency audits of registered electrical workers who have not uplifted a practising licence were conducted.
N/A
  • competency audits of electrical workers who hold a provisional licence and/or are supervised trainees
200 44 competency audits of electrical workers who hold a provisional licence and/or are supervised trainees were conducted. A further 146 were completed in July 2007.
  Quality    
N/A All decisions that are referred to the Electrical Workers Registration Board comply with the Electricity Act 1992, Electricity Regulations 1997 and published policies All referrals to the Board were approved and legislative requirements met All decisions referred to the Board were agreed to by the Board and satisfied the legislative requirements.
  Timeliness    
  Licensing and Registrations    
N/A Process correctly completed practising licence applications 95 percent within 10 clear business days of receipt 98 percent of correctly completed practising licence applications were processed within 10 business days of receipt.
N/A Process correctly completed registration applications 95 percent within 10 clear business days of receipt 98 percent of correctly completed registration applications were processed within 10 business days of receipt.
N/A Process correctly completed overseas registration applications 65 percent within 10 clear business days of receipt 73 percent of correctly completed overseas registration applications were processed within 10 business days of receipt.
  Complaints against registered electrical workers    
N/A (a) Period from the date a complaint is received by the Electrical Workers Licensing Group to the date of the Complaints Assessment Committee's decision 70 percent within 18 weeks of receipt 73 percent of the decisions of the Complaints Assessment Committees were determined within 18 weeks of receipt of the complaint by the Electrical Workers Licensing Group.
N/A (b) (where the Committee decides to refer a complaint to the Board for decision) Period from the date a complaint is received from the Complaints Assessment Committee to the date of the Electrical Workers Registration Board decision 70 percent within 15 weeks of receipt All decisions of the Electrical Workers Registration Board were determined within 15 weeks of receipt of complaints from the Complaints Assessment Committee.

16 The administration of the Electrical Workers Licensing Regime was transferred from the Ministry of Economic Development on 1 September 2006.

17 Quantities shown are based on projections for the 10-month period to 30 June 2007.

18 There is no comparative data as the administration of the Electrical Workers Licensing Regime was transferred from the Ministry of Economic Development on 1 September 2006. Furthermore, the forecast quantities are based on projections for the 10-month period to 30 June 2007.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
- Revenue - Crown - - -
6 Revenue - departmental 36 45 9
- Revenue - other 3,178 3,363 4,260
6 Total revenue 3,214 3,408 4,269
2,815 Total expenses 8,828 8,885 7,535
(2,809) Net surplus/(deficit) (5,614) (5,477) (3,266)

 

Building Regulation and Control
This output expense involves delivering a regulatory regime that ensures buildings are built properly the first time and meet the needs of New Zealanders. It includes specifying the regulatory environment, setting standards for buildings and building sector capability, and providing advice and guidance about the regulations and standards.
 
Output: Setting the Standards for Buildings: Maintaining and reviewing existing Building Code and Compliance Documents; issuing warnings and bans as required.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
Measure revised in 2006/07 Completion of 20 Building Code priority review projects relating to Code clauses and/or Compliance Documents 20

32 projects were completed. Examples include:

  • a decision to amend the Building Code Compliance Document B1 (Structure) recognising a new timber grading regime (through citing amendments to a New Zealand Standard) was announced on 14 September 2006. This became effective on 1 April 2007. A series of seminars around the country explained the changes
  • two guidance documents on accessibility for people with disabilities were distributed in February 2007
  • amendments to nine Building Code Compliance Documents were published on 22 March 2007. These amendments were for hygiene, ventilation, hazardous substances, electricity, piping, gas, water supply, foul water and safety barriers
  • public comment on a proposal to amend the Compliance Document for structure by citing the new loading Standard and the Masonry Design Standard closed on 3 April 2007. Submissions are being analysed
  • a consultation document seeking public comment for amendments to fire and ventilation Compliance Documents was issued. Submissions closed on 13 April 2007 and are being analysed
  • revisions to Building Code clauses for visibility in escape routes, safety from falling, liquid waste, and external moisture came into effect on 21 June 2007
  • projects relating to moisture that have been completed during the year include:
    - distribution of the principles of weathertightness guidance document
    - development of the draft weathertightness remediation guide
    - publication of standards for building underlays and solid plastering
    - undertaking a further seminar series on weathertightness
  • a proposal to amend the Building Code and Compliance Document for sound (protection against noise) is being finalised
  Quantity (continued)    
     
  • the amendments to the Building Code and Compliance Documents on energy efficiency relating to domestic space heating, solar water heating and commercial lighting were announced on 3 May 2007. Compliance Documents and amendments to the Building Code were being finalised at 30 June 2007
  • the discussion document on energy efficiency of commercial heating, ventilation and air- conditioning equipment and on domestic water heating closed for public comment on 29 June 2007. Submissions are being analysed.
  Quality    
Measure revised in 2006/07 Projects completed before 30 June 2007 and in accordance with the requirements of the Building Act 2004 Requirements met by 30 June 2007 The projects were completed by 30 June 2007 and process requirements were met for all completed projects.
Output: Building Sector Education: Building officials' education and increasing learning across the building sector.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Establish a baseline by 30 June 2007 on building practitioner performance to inform a strategy to enhance practitioner competency in 2007/08 Baseline established by 30 June 2007 A gap analysis on technical reviews of territorial authorities and pilot studies under new building consent authorities has led to a more specific study on training quality and availability. This will be completed in September 2007, and is one of a number of inputs planned to establish a baseline measure of performance.
  Quality    
New measure in 2006/07 Building sector bodies endorse the findings of the baseline assessment Standard met This work was deferred due to other priorities.

 

Output: Public Information and Education: Provide information and education to enable better informed consumer decisions.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity (continued)    
New measure in 2006/07 Baseline survey of consumers' awareness of building sector information and practices undertaken by 30 September 2006 30 September 2006 This work was deferred due to other priorities.
New measure in 2006/07 Strategy developed and activity commenced to enhance consumer awareness and influence behaviour toward better informed decision-making when purchasing homes and other buildings by 30 June 2007 30 June 2007 The Weathertightness Consumer Awareness Campaign has information to influence consumer awareness of the importance of better decision- making when purchasing homes.
  Quality    
New measure in 2006/07 All communications developed in accordance with our guidelines on professional communication Guidelines met Guidelines met.
 
Output: Building Regulation Advice and Guidance: Provide advice and guidance information to the building sector and consumers.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Guidance material releases 15

The following guides have been published and distributed in hardcopy.

  • Compliance Schedule Handbook (June 2007)
  • New Zealand Building Code Handbook (June 2007)
  • ITM Trade Mailer:
    - Warmer houses on the way (March 2007)
    - Amendment 2 to NZS 3604 (May 2007)
    - Licensing for Builders (May 2007)
    - New rules for timber framing for housing (May 2007)
  • Mitre 10 Trade Mailer Building a deck (November 2006)
  • Real estate magazines:
    - From BCAs to CCCs - a guide to Building Code jargon (December 2006)
    - Location location - the effect of the environment on houses (December 2006)
    - Painting your house (December 2006)
  • Promotion for cavities booklet with the Building and Construction Industry Training Organisation (30 March 2007)
  • Variations and building consents amendments published in Codewords (May/June 2007)
New measure in 2006/07    
  • Applying for a building consent - simple residential buildings (February 2007
  • Accessible reception and service counters (January 2007)
  • The international symbol of access (January 2007)
  • Building consent exemptions in Codewords (January 2007)
  • Energy efficiency article in DIY Retailer magazine (March 2007)
  • External Moisture - An introduction to weathertightness design principles (August 2006)
  • New Zealand Society for Earthquake Engineering Recommendations for the Assessment and Improvement of the Structural Performance of Buildings in Earthquakes (July 2006).
New measure in 2006/07 Codewords issues 8 Eight issues of Codewords have been published. A readership survey indicated that Codewords was highly regarded by respondents.
New measure in 2006/07 Forecast of queries answered by call centre (demand-driven) 12,000 14,145 queries were answered by the call centre. 12,213 of those related to the Building Act 2004 and 1,932 related to the Licensed Building Practitioner Scheme.
  Quality    
New measure in 2006/07 All communications developed in accordance with our guidelines on professional communication Guidelines met Guidelines met.
New measure in 2006/07 Percentage of queries resolved by call centre (not escalated) 60 percent 63 percent of queries were resolved by the call centre.
 
Output: Operate Regulatory Schemes: Administer product certification scheme, building consent authority accreditation and registration scheme, and dam safety scheme.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Operational processes and procedures are developed prior to the start of building consent authority accreditation and registration scheme, dam safety scheme and product certification scheme Processes and procedures are developed
  • BCA accreditation scheme initiated 1 February 2007
  • BCA registration scheme - policy design completion is scheduled for August 2007
  • Dam safety scheme - regulations will be promulgated in 2008
  • Product certification scheme - procedures are now being developed
  Quality    
New measure in 2006/07 Measures to be developed on establishment of finalised schemes, in accordance with the requirements of the Building Act 2004 Requirements met Measures have not been developed as the product certification scheme is not yet finalised. Measures will be developed when the scheme has been finalised. Measures are on track for the other two schemes.
New measure in 2006/07 All operational policy development meets our Quality Standards for Policy Advice Standard met

All reports and advice have undergone peer review. In 2006, a mechanism for assessing reports and advice against the quality standards as part of the peer review process was developed. This mechanism was piloted in the Sector Policy Branch and has been implemented across the Department.

The Department has regular meetings with the Minister and feedback has been provided. The Minister is satisfied with the quality of policy advice.
Output: Monitor Building Consent Authorities: Ensure adherence to standards in the building sector.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Undertake and complete technical reviews of territorial authorities 6

The Department has undertaken six technical reviews and published reports regarding the following territorial authorities.

  • Selwyn District Council
  • Ruapehu District Council
  • Wellington City Council
  • Waitakere City Council
  • Franklin District Council
  • Porirua City Council
  Quality    
New measure in 2006/07 Technical reviews completed in accordance with the Department's Technical Review Guidelines Guidelines met All technical reviews completed in accordance with the Department's Technical Review Guidelines.

 

Output: Resolve Complaints and Disputes: Investigate and resolve complaints and disputes about territorial authorities, building consent authorities, Building Consent Accreditation Body and Product Certification Accreditation Body and issue determinations.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Forecast complaints and disputes received and managed Demand-driven Complaints were resolved, or redirected to the appropriate authority (eg, the determinations team, the Ministry for the Environment or a territorial authority).
New measure in 2006/07 Determinations issued (demand-driven) 160 135 determinations were issued during the year.
  Quality    
New measure in 2006/07 Percentage of determinations appealed Less than 3 percent Less than 1 percent (one notification of appeal received).
  Timeliness    
New measure in 2006/07 Percentage of determinations completed within the statutory timeframe (60 days) 90 percent

Achieved 76 percent.

Timeliness slowed while seeking legal advice on the interpretation of section 436 of the Building Act 2004. Most determinations were issued following receipt of advice, but there was an impact on full-year timeliness performance.
Output: Building and Construction Monitoring, Research and Evaluation: Undertake regulator and industry performance monitoring and reporting; and commission building-related research.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Four industry advisory panels operating Ongoing Four industry advisory panels are operating.
New measure in 2006/07 Reports published each year on sector trends 4 per year

The following quarterly Building and Housing Trends Reports were published.

  • June Quarter Report published early October 2006
  • September Quarter Report published mid-December 2006
  • December Quarter Report published mid-April 2007
  • March Quarter Report published on 5 July 2007
New measure in 2006/07 Research projects completed 7 Nine research projects were completed during the year. This included two additional projects relating to maximum bracing capacity and international weathertightness research.
  Quality    
New measure in 2006/07 Industry advisory panels operate within their agreed terms of reference Terms of reference met Each of the four panels met on two occasions during the year as scheduled. The panels provided input to our understanding of relevant issues, consistent with their terms of reference.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
- Revenue - Crown 1,200 1,200 200
85 Revenue - departmental 63 63 62
18,910 Revenue - other 16,933 10,528 18,072
18,995 Total revenue 18,196 11,791 18,334
11,124 Total expenses 11,873 13,641 12,640
7,871 Net surplus/(deficit) 6,323 (1,850) 5,694

 

Weathertight Homes Resolution Service
This output expense involves the provision of assessment and dispute resolution services for homeowners whose homes are affected by the 'leaky building syndrome'. The operations of the Service and the Weathertight Homes Resolution Services Act 2002 have been comprehensively reviewed and a series of legislative and operational changes are proposed to be implemented during 2006/07. These changes will enhance the delivery of each stage of the WHRS process and the effective implementation of these changes will be the major focus for 2006/07.
 
Output: Implementation of WHRS Changes (including providing advice and information)
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 The delivery of changes to each stage of the WHRS process within the agreed timeframes, quality and budget set out in the implementation plan Measure achieved

All stages were successfully implemented. New staff members were appointed and comprehensive training delivered as well as support provided for the Ministry of Justice (MoJ). A Memorandum of Understanding between the Department and MoJ was signed to ensure cooperation between the two agencies.

The Department worked with HNZC to finalise the criteria for the lending assistance pilot, completed new assessment methodology and report formats, and claimant advice and guidance material.

The new system under the WHRS Act 2006 began on 1 April 2007.
Output: Weathertight Homes Claims Assessment: Provide owners of leaky homes with an assessor's report prepared in relation to their claim. The primary statutory role of the assessment report is to provide the basis for establishing the eligibility of a claim. Claim assessment is completed when a claimant is advised of the claim's eligibility. Changes are to be made to the assessment process to provide a more comprehensive report that identifies all weathertightness damage and repairs and support the changes to the resolution process. Completed reports may also be provided with addenda or revised to enable their use in the enhanced resolution process.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Forecast new claims received 1,250-1,850

752 new claims were received.

This number is below the original target that was based on legislative changes taking effect from 1 September 2006.

Claim numbers increased in the last 2 months of the year to around 70 per month, significantly higher than the monthly average of 55 to 30 April 2007.

Anecdotally, it appears that some claimants may be holding off applying until the Weathertight Homes Resolution Services (Remedies) Bill 2007 is passed. This will clarify that the Tribunal has power to award general damages.
1,19919 Forecast volume of assessments completed 1,200-1,800

933 assessments were completed.

Despite a lower-than-expected number of new claims, the high number of assessments completed reflects the success of the new structures and procedures put in place to support the WHRS Act 2006.

New measure in 2006/07 Forecast volume of addenda or revisions completed 400-850

345 addenda or revisions were completed.

The forecast was based on the anticipated start date of 1 September 2006.
  Quality    
New measure in 2006/07 Assessment reports, including addenda and revisions, produced following implementation of the new business model will meet the quality criteria established as part of the assessment methodology and code of practice 95 percent

100 percent of assessment reports produced following implementation of the new business model have met the quality criteria established as part of the assessment methodology and code of practice.

This performance reflects the success of the new business model in supporting delivery of services under the WHRS Act 2006.

All reports are subject to rigorous quality checks before release to claimants.
  Timeliness    
98 percent Percentage of applicants receiving acknowledgement, and accurate and timely information and advice is provided within 5 working days of receipt of their applications by the WHRS 95 percent 100 percent of applicants received acknowledgement, and accurate and timely information, and advice was provided within 5 working days of receipt of their applications by the WHRS.
91 percent Percentage of claims assessments for single homes completed within 6 months of receipt of their application 85 percent 93 percent of claims assessments for single homes were completed within 6 months of receipt of their application.
91 percent Percentage of claims assessments from multi-dwelling complexes completed within 12 months of receipt of their application 85 percent 93 percent of claims assessments from multi-dwelling complexes completed within 12 months of receipt of their application.
New measure in 2006/07 Percentage of addenda or report revisions requested by adjudicators or mediators completed within 6 months of receipt of their request 85 percent 100 percent of addenda and report revisions requested by adjudicators or mediators were completed within 6 months of receipt of their request.

 19 The target was revised in 2006/07. The target in 2005/06 was 1,050-1,550

Output: Dispute Resolution: Provide a service for homeowners with eligible claims to establish the parties to the claims, collate the evidence and hold either mediation or adjudication hearings to resolve the claims. New processes will be implemented during 2006/07 to enhance this service.
Actual 2005/06 Measures Standard 2006/07 Performance to 30 June 2007
  Quantity    
New measure in 2006/07 Forecast number of claims commencing dispute resolution 1,100-2,450

168 claims commencing dispute resolution were received.

The forecast numbers were based on enhancements to WHRS expected to take effect from September 2006, but only occurred 1 April 2007.
New measure in 2006/07 Forecast number of claims ready for mediation or adjudication hearings 700-2,200

134 claims were ready for mediation or adjudication hearings.

Anecdotally, it appears that some claimants may be holding off applying until the Weathertight Homes Resolution Services (Remedies) Bill 2007 is passed. This will clarify that the Tribunal has power to award general damages.
New measure in 2006/07 Forecast number of claims resolved 350-1,100 155 claims were resolved.
  Quality    
New measure in 2006/07 Performance measures to be established during implementation of the new business model   Measures were developed in the fourth quarter of 2006/07.
  Timeliness20    
Measure revised in 2006/07 Percentage of claims processed to be ready for mediation or adjudication hearings within a specified time period of the claimant electing to commence the resolution process 80 percent The measure was reviewed against the new business model in the fourth quarter of 2006/07 and it was found to be inappropriate. New timeliness measures have been established in the Department's 2007/10 Statement of Intent.
Measure revised in 2006/07 Percentage of claims resolved by mediation within a specified time period of the claim being ready for mediation hearing 80 percent The measure was reviewed against the new business model in the fourth quarter of 2006/07 and it was found to be inappropriate. New timeliness measures have been established in the Department's 2007/10 Statement of Intent.
Measure revised in 2006/07 Percentage of claims determined by adjudication within a specified time period of the claim being ready for adjudication hearing 80 percent The measure was reviewed against the new business model in the fourth quarter of 2006/07 and it was found to be inappropriate. New timeliness measures have been established in the Department's 2007/10 Statement of Intent.

20 The specific time periods for these measures are to be established during implementation of the new business model.

Financial Performance

2006
Actual
$000

2007
Actual
$000

2007
Supplementary
Estimates
$000

2007
Main
Estimates
$000
17,575 Revenue - Crown 19,155 19,155 23,672
36 Revenue - departmental 78 50 57
88 Revenue - other 64 84 113
17,699 Total revenue 19,297 19,289 23,842
15,721 Total expenses 17,638 19,289 23,842
1,978 Net surplus/(deficit) 1,659 - -