Our contribution to Government outcomes and priorities
The work of the Department contributes to the Government's three key themes.
Economic Transformation
The Department contributes to Economic Transformation by supporting the development of a sustainable economy based on innovation and quality.
The Department's contributions include the:
- implementation of the Building Act 2004
- Building Consent Authority Accreditation and Registration Scheme
- Licensed Building Practitioner Scheme
- Building Code Review
- Product Certification Scheme
- building standards, technical guidance and determinations.
Implementation of the Building Act 2004
The Building Act 2004 regulates building work, establishes licensing regimes and sets, through the Building Code, performance standards to ensure buildings have attributes that contribute appropriately to the health, safety, physical independence and wellbeing of the people who use them. A greater emphasis has been placed on the needs of consumers (defined as occupiers of housing and other buildings) and on recognising the special place that houses have in people's lives.
The Act is a significant regulatory reform. Implementation began in 2004 and is expected to take up to another year to be fully completed. It has involved the roll-out of key systems for building consent authority accreditation, the licensing of building practitioners and the establishment of the regulatory framework for product certification. A significant amount of other related work is largely complete, some of which is highlighted below, including the review of the Building Code.
Building Consent Authority Accreditation and Registration Scheme
Accreditation and registration will promote consistent and good-quality building controls at the local level and will help foster continuous improvement and improve customer service. At the end of the 2007/08 year, 53 councils and three private companies are now accredited or cleared for accreditation as building consent authorities. This significant success has been achieved through hard work and commitment by councils, supported by our case advisors.
The date by which councils are required to be accredited has been extended to 31 March 2009. All councils are expected to be accredited or have completed the accreditation process or transfer of their building controls function to a registered and accredited building consent authority.
Licensed Building Practitioner Scheme
The voluntary licensing scheme commenced on 1 November 2007. The scheme promotes, recognises and supports professional skills and behaviour in the building industry. A register of licensed building practitioners came into effect from 1 March 2008. The Department distributed 10,933 licensing packs and received 400 completed applications from 317 building practitioners. 227 building practitioners have been licensed or approved to be licensed.
Work is under way on the development of the next six licensing classes. Consultation on the draft competency standards for roofing, bricklaying and blocklaying and external plastering licence classes has been completed and draft competency standards developed for steel structure, concrete structure and pile foundations classes.
From 2010 only licensed building practitioners can supervise or carry out certain restricted work relating to design or construction. During the year we consulted extensively with the sector on the detailed definitions for restricted building work and released a consultation document on the proposals for exemptions for owner builders from the restricted work requirements.
Building Code review
The Building Act 2004 sets the legal framework for building work. All building work, both in the design and construction of new buildings and the upgrading of existing buildings, must comply with the Building Code which sets out mandatory performance standards. It covers aspects such as health and safety, fire, access, moisture control, durability, energy efficiency, amenity, and services and facilities.
A comprehensive review of the Building Code was completed and a report on proposed changes to the Code was submitted to the Minister on 30 November 2007. A comprehensive review of the Building Code was required by section 451 of the Building Act 2004, to ensure the Code meets the requirements of the Act, provides clear guidance on the performance standards that buildings must meet to ensure compliance, and supports innovation in building systems that meet quality standards.
During the year the Department received and analysed submissions on a second discussion document, released in July 2007, which addressed the shape and overall principles for a revised and updated Building Code. To facilitate the process, the Department convened workshops with people and organisations intending to make submissions on the discussion document and held focus group meetings with a wide cross-section of building users.
The review of the Building Code will contribute to the Government's overall sustainability goals. It will improve performance requirements for buildings to enhance people's health, safety and wellbeing, increase the energy efficiency of buildings and take better account of ‘whole of life' use of natural resources such as energy, water and construction materials.
The first phase of proposed changes to the Building Code has been approved and is included in the 2008/09 work programme. This comprises a framework for fire safety design, improved requirements for protection from noise, initial policy work on carbon emissions as they relate to energy efficiency, and comprehensive sector education.
Product Certification Scheme
To create high-quality buildings New Zealand needs a well-functioning building industry, with reliable standards, and testing and design guides for materials and processes used in construction.
The Building Act 2004 provides for a Product Certification Scheme. The Department is working on this and in particular a trans-Tasman scheme (CodeMark) that will be tied to international standards of quality and accountability. When the CodeMark scheme is implemented, it will provide the sector with greater assurance about building product performance.
During the year we appointed the Joint Accreditation System of Australia and New Zealand (JAS-ANZ) as the product certification accreditation body and agreed the contractual reporting requirements. The Building Amendment Act was passed in March 2008 and this enabled us to determine a charging regime. By 30 June 2008 the proposed regulatory framework to give effect to the Product Certification Scheme had been approved and drafting instructions given to Parliamentary Counsel Office. Three organisations have expressed an interest in becoming product-certifying bodies once the regulations are in place.
Building standards, technical guidance and determinations
The Department's work also included a number of initiatives designed to ensure building practitioners are well-informed, buildings are built properly the first time and perform well for their users in the New Zealand environment. These included amending Building Code Compliance Documents to clarify and improve building and performance standards, work on New Zealand Standards, technical research projects, guidance documents and completing four technical reviews of territorial authorities.
Building Code Clause H1 (Energy Efficiency) was amended to require heating, ventilation and air-conditioning systems in commercial buildings to be energy- efficient. Changes made earlier in the financial year to the same clause to require improved household insulation continued to come into effect progressively throughout New Zealand.
Support for the sector included seminar series to inform and educate the sector on the new domestic insulation requirements, demonstrating compliance with the Building Code, and fire engineering design. We also answered more than 11,000 technical enquiries received through the Services Centre and participated in and presented papers at numerous sector organisation conferences and meetings.
Other initiatives over the year included:
- publishing a draft Compliance Document for simple housing, which is part of the government's housing affordability initiatives and which aims to promote and facilitate the construction of affordable homes
- publishing a new Acceptable Solution for solar water heaters, which makes them easier to install and improves the quality of installations
- hosting a meeting of the Interjurisdictional Regulatory Collaboration Committee (IRCC), the principal international body of building regulators from countries with performance-based building codes
- publishing a new Acceptable Solution for earth buildings
- updating the Compliance Document for building structure by referencing a major new Standard, AS/NZS 1170
- significantly revising the Compliance Document for emergency lighting in buildings
- issuing a guidance document on the repair of buildings with weathertightness problems
- hosting industry forums on timber treatment and handling issues, and conducting a major survey of timber users on the preferred way forward (attracting more than 250 responses)
- concluding a contract with BRANZ to conduct the multi-year Building Energy End-use research study, which is being funded by the government as part of implementing the New Zealand Energy Efficiency and Conservation Strategy
- commissioning and monitoring other technical research programmes, including fire safety, sound transmission and timber durability
- hosting a forum with the horticulture industry to help it develop an industry Code of Practice for seasonal worker accommodation
- developing a guidance document jointly with the Barrier Free Trust on accessible car parking spaces
- consulting on a revised Compliance Document for accessibility requirements for Department of Conservation back country huts
- completing technical reviews of four councils.
The Department issued 127 determinations during the year and received two notifications of appeal. A determination is a binding decision made by the Department on the application of the Building Code. It provides a way of solving disputes or questions about the rules that apply to buildings, how buildings are used, and building accessibility, health and safety.
Families - Young and Old
The Department contributes to the theme of Families - Young and Old by sustaining family and community living standards.
The Department's contributions include:
- housing affordability and streamlining the building design and consent processes
- supporting the effective operation of the rental housing market
- improving outcomes for the owners of non-weathertight homes
- Retirement Villages Code of Practice
- energy efficiency initiatives
- monitoring and purchase advice on Housing New Zealand Corporation.
Housing affordability and streamlining the building design and consent processes
The Department has been working with others on a comprehensive programme of work to address the issues of housing affordability and streamlining the building design and consent processes.
Our advice has resulted in Cabinet decisions to implement the following initiatives.
- A Compliance Document for ‘starter' homes was approved by Cabinet and released for public consultation on 26 June 2008.
- Advice on measures to streamline the design and building consent process for simple starter homes, including:
- - proposed amendments to the list of building work exempt from building consents (Schedule 1)
- - a proposal to introduce national multiple use approvals for buildings to be replicated across a number of territorial authorities
- - a proposal to make project information memoranda voluntary
- - a proposal to streamline the process for minor variations to building work.
Other work included:
- a report on the findings of feasibility studies of options to improve the efficiency of the building consenting process through smart use of technology, including national online consenting and a product database. The report also proposed piloting a new approach to processing complex building consents through regional clusters
- development of an interim report on the adequacy of land supply for residential housing in the Auckland region
- advice on factors affecting institutional investment in residential rental accommodation after consultation with the sector.
- a report reviewing the monitoring role of the Department provided to the Minister on 30 June. A new Branch is being created within the Department to strengthen our capability in the provision of advice on emerging issues and trends that are likely to impact on or are critical to the performance of the building and housing sector in New Zealand. This includes factors such as demographics, land supply, affordability, productivity and international trends so that informed decisions can be taken by government, local government, the Department and the sector.
Supporting the effective operation of the rental housing market
It is important that the rental housing market works well, as it affects the social and economic outcomes of a sizeable number of New Zealanders. The market has been growing and changing on both the demand and supply side. Over 31 percent of New Zealanders live in homes they do not own. On the supply side, the private sector provides 83 percent of this housing. Many New Zealanders own and operate a small number of properties for savings and investment purposes.
The Department supports the effective operation of the rental housing market through its administration of the Residential Tenancies Act 1986. We provide tenancy services that support tenants and landlords to make well-informed decisions, operate with confidence in the rental housing market and resolve disputes.
In 2007/08 the Department obtained approval for the Residential Tenancies Amendment Bill and this was introduced to Parliament. The changes to the Residential Tenancies Act 1986 are designed to ensure that rights and obligations are clear and appropriately balanced so that tenants have access to stable, quality accommodation and landlords can manage rental properties effectively.
The Department made changes to our delivery of tenancy services in 2006/07 and continued to refine the services delivered in 2007/08. These changes were designed to improve clients' access to services and better connect tenancy services to communities. They included extended hours of operation of the free phone 0800 Tenancy advice line and access from mobile telephones to this service, advice clinics for tenant groups, education and information seminars for landlords, radio shows on Radio Pacific and training for Citizens Advice Bureaux, budget and student services.
During 2007/08 the benefits of the changes became evident.
- A total of 11,334 (88 percent increase) applications were received through the new online application process, representing nearly one in every three applications made by a private landlord or tenant.
- 28,541 tenancy disputes were resolved through the Department's mediation process (up from 25,199 last year). A further 18,137 disputes were resolved through adjudication by the Tenancy Tribunal.
- The new Swift telephone mediation services resolved 2,374 disputes without the need for the landlord and tenant to physically attend an appointment.
- Mediation and advice services were provided from 67 locations around New Zealand, including from the new Linwood Community Link Centre.
- The average number of days from application to a mediation appointment reduced from 10.1 days to 8.4 days, and from application to an adjudication hearing from 23.2 days to 21.2 days.
- Client satisfaction survey results showed that more than 80 percent of respondents were satisfied with advice and mediation services.
- Education and information seminars targeted selected landlord, tenant, industry and community organisations, including a national series of 26 landlord seminars, 31 radio shows on Radio Pacific, training for Citizens Advice Bureaux, budget and student services.
- New educational tools were produced for landlords and tenants, including www.flatting101.co.nz for first-time renters and a CD-ROM for new landlords.
- Increased work with or through other agencies to reach landlords and tenants including Ma-ori and Pacific organisations, mortgage and insurance brokers, government and community organisations.
The Department also continued to provide bond services under the Residential Tenancies Act 1986, and:
- answered 219,458 calls for advice to landlords and tenants on tenancy issues
- received 200,330 bonds for lodgement and processed 196,620 bond refunds
- answered 224,010 calls for advice on bonds.
Improving outcomes for the owners of non-weathertight homes
This is the first full year of the operation of the Weathertight Homes Resolution Services Act 2006. This legislation promoted a suite of changes designed to improve the efficiency and effectiveness of the WHRS process and achieve better outcomes for affected homeowners.
The Department provides:
- assistance and guidance at all stages of the process to claimants
- a low-cost assessment of the home's weathertightness problems
- mediation services to resolve disputes.
The Department:
- received over 1000 eligible claims, which covered over 1300 dwellings as owners of apartments elected to proceed with class actions under the WHRS Act 2006
- issued 1027 assessments and revised assessment reports
- issued reports that are now far more comprehensive as the new assessment methodology provides for the assessment of both actual and probable damage to claimants' homes, and the work needed to effectively repair their homes
- made improvements to case management such that more claimants are now repairing first and then seeking redress second
- successfully resolved 141 cases through mediation, being 86.5 percent of cases mediated
- continued to maintain the ConsumerBuild website to provide advice to prospective homeowners and owners of potentially leaky homes.
Retirement Villages Code of Practice 2008
On 29 May 2008 the Minister introduced the new Retirement Villages Code of Practice. This replaces the Code of Practice 2006 which was ruled invalid by the High Court in 2007 following a judicial review. The new Code of Practice improves consumer awareness and protection for existing and intending residents of retirement villages, provides a minimum standard that all retirement village operators must meet, and clearly sets out people's rights and responsibilities. The Department and the Retirement Commissioner are jointly managing the nine week consultation process which started on 16 June and closes on 15 August 2008.
Energy efficiency initiatives
During the year, the Department delivered an extensive programme of initiatives aimed at improving the energy efficiency of New Zealand buildings.
Improvements made to the energy efficiency performance requirements under the Building Code included Compliance Documents for house insulation, commercial lighting and the installation of solar water heaters, which came into effect in 2007/08. We produced and distributed 32,000 copies of the booklet Your guide to smarter insulation and presented a New Zealand-wide series of seminars on new insulation requirements to designers, building officials and builders.
Further energy efficiency proposals relating to heating, ventilation and air-conditioning in commercial buildings, and domestic water heating, were completed in 2007/08 and will come into effect in 2008/09.
We continue to encourage New Zealanders to use energy more wisely in their homes and to highlight the financial, health and environmental benefits. In partnership with other agencies, including Consumer New Zealand, the Energy Efficiency and Conservation Authority and the Electricity Commission, we promoted consumer awareness of energy efficiency through a series of publications, including a newspaper insert and a booklet Your Guide to a Smarter Home, of which 70,000 copies were distributed. These initiatives were supported by a nationwide television commercial campaign.
Monitoring and purchase advice on Housing New Zealand Corporation
The Department provides monitoring and purchase advice to the Minister of Housing in relation to Housing New Zealand Corporation (HNZC).
In 2007/08 we advised the Minister on key accountability documents (Letters of Expectation, Statement of Intent, Annual Report and Output Agreement) and related reporting. In addition, we worked with the Treasury on a review of the financial governance and output class structure for HNZC. HNZC non-departmental appropriations were restructured with effect from 1 July 2008.
We also provide the Minister for Building and Construction and the Minister of Housing with governance advice on nine statutory boards, including HNZC. In the past year we strengthened relationships with these boards and built understanding of the performance targets we monitor. Our work has included drafting Output Agreements and providing support for the appointment and reappointment of members to four boards.
National Identity
The Department contributes to the theme of National Identity by supporting innovation and good design in the built environment.
The Department's contributions include:
- an integrated approach to the built environment
- the introduction of the Unit Titles Bill.
An integrated approach to the built environment
A number of elements are vital to good-quality buildings and good design in the built environment, and the Department leads or contributes to all these elements. Two examples of our contribution to innovation and good design in the built environment are our work on building standards and the introduction of the Unit Titles Bill into Parliament.
Key elements in the building system include:
- a well-functioning building industry, including skilled building professionals such as designers, architects, builders, tradespeople, manufacturers and consumers
- a sound legal framework for conducting business so all parties can be held accountable for their actions
- reliable standards, testing and design guides for materials and processes used in construction
- warranties to provide reassurance to building owners
- education and training to provide knowledge and skills to people involved in the building process.
Introduction of the Unit Titles Bill
On 29 May 2008 the Minister introduced the Unit Titles Bill. The Bill updates the existing Unit Titles Act 1972 to better reflect today's living arrangements by providing a modern and flexible legal framework for unit title developments to be created, governed and maintained. This is critically important given the substantial increase in apartments and townhouses in New Zealand, particularly in larger urban areas where the number of more intensive housing developments has increased considerably.