| Issue/risk identified in the 2008/11 Statement of Intent |
How we responded to the issue/risk |
| Affordability |
Developing the response to affordability |
| The Department has been working with other agencies to understand the drivers of affordability and the declining rates of homeownership. |
Streamlined consents for simple homes were progressed through the Building Amendment Act 2009, and a major study of Auckland's land supply fed into Government consideration of planning and resource management legislation. An Urban Taskforce (supported by the Department) pinpointed the main impediments to improving urban development, setting out an agenda for change for industry, central and local government leaders. The Department also advised the Government on increasing the size and scale of the not-for-profit housing sector and institutional investors as a way of improving supply and affordability. |
| Managing in the political context |
Ensuring the context for the reforms is clearly articulated |
| The Department is well through the implementation of the reforms across the building sector that were identified by the Hunn Report on weathertightness of buildings and given effect through the Building Act 2004. As the reforms progress, there is likely to be reaction from across the sector as the changes are fully implemented and adjustments are made. |
The Department used various mechanisms to communicate with clients, consumers and other sector interest groups about the reforms. For example during the year the Department: was represented at, and/or spoke at a number of sector conferences and forums published information and newsletters such as Codewords, BCA Update and contributed to sector publications such as Build magazine, Progressive Building magazine used our website to publicise and promote our work programme. |
| Building sector capacity and capability |
Working better with the sector |
| The building sector does not have the ability or will to implement the changes brought about by the Building Act 2004. |
Reviewed the implementation of some of the schemes administered under the Act with the sector and streamlined and simplified requirements. Specific examples include: Building Consent Authority Accreditation and Registration Scheme - changes were made to ensure clearer interpretation of the required standards and accreditation (particularly with the accreditation body). Licensed Building Practitioner Scheme - application forms have been simplified and proposals developed to reduce costs and give greater recognition to trade qualified practitioners. The Building Amendment Act 2009 resulted in three key changes to the Building Act 2004: national multiple-use building consent approvals were introduced; a new streamlined process for minor variations to building plans after building consent was set up; and a project information memorandum became voluntary. Terms of reference for the Building Act review to reduce red tape, ensure the requirements of the Act are streamlined and cost effective, and move to a more risk-based approach. |
| Building consent authority capacity and capability |
Supporting local government's accreditation progress |
| Some councils' level of preparedness and current capacity limitations could prevent them from achieving accreditation and, subsequent to accreditation, progressing through the next phase. |
All territorial and regional authorities were accredited and registered by 31 March 2009. An independent evaluation of phase 1 identified opportunities to make accreditation more effective. Options for refining and streamlining phases 2 and 3 of the scheme are under development. |
| Effectiveness of the WHRS reforms |
Working closely with key stakeholder groups |
| The outcomes expected by claimants and stakeholders from the Weathertight Homes Resolution Services Act 2006 will not be realised. |
Improved weathertight services to ensure that disputes are resolved as quickly as possible. Claims lodged under the 2006 Act are taking less time to reach resolution compared with the 2002 Act. The Government has initiated a review of the approach to weathertightness. The Department has worked with stakeholders, including territorial authorities, to identify issues and develop policy options for Government consideration. |
| Capacity, capability and infrastructure |
Building capacity and capability at all levels |
| Departmental capacity, capability and infrastructure, which is being built at the same time as delivering on a substantial work programme in a changing environment, may result in significant demands and pressure on the Department. This could compromise the quality of the reforms for which we are accountable and the health and wellbeing of our people. |
Our Value For Money Programme and Planning, Performance and Assurance System are designed to ensure resources are appropriately prioritised and focused on the key deliverables. Our investment in core business infrastructure over 2008/09 and 2009/10 will support effective service delivery. More broadly, our employee engagement system supports the recruitment, retention and development of employees to do a good job. Our investment in people through development and training is enhancing our overall capability. |
| Financial pressures |
<Managing with limited resources |
| With reducing appropriations and additional functions being expected of the Department, the quality of the work and capacity to deliver will be compromised. |
Financial pressures were exacerbated by the economic downturn and its impact on the Department's revenues. Our Value For Money Programme aims to maximise our ability to meet projected shortfalls in funding through performance improvements. These include the design of future policies and the discontinuation of any services, activities and programmes that are not delivering value for money. During 2008/09 the Programme identified a range of actions that generated savings/cost reductions of $3.171 million. Additional Performance Improvement Actions have been identified for 2009/10. |