*ARCHIVE* - Paper proposing additional consumer protection measures released 2 Oct 2003
On 25 September, Commerce Minister Lianne Dalziel announced the release of a paper setting out proposals for better protecting homeowners purchasing building services or built household units from property developers.
The paper, which was prepared by the Ministry of Economic Development (MED) and builds on the proposals set out in the Building Bill, aims to provide additional consumer protection measures. Proposals are presented to:
- Ensure homeowners have rights against all relevant parties by extending the provisions for the Building Bill's implied warranties to the sale of household units by developers
- Ensure homeowners have access to effective means of resolving disputes over building defects or failures (including for household units purchased from developers)
- Improve homeowners' prospects of gaining satisfaction following resolution of a dispute and improve incentives on builders and developers to take responsibility for putting right defects.
The Minister encouraged consumers and the building industry to give feedback on the measures via a submission to MED by 15 October.
"The Ministry wants to test these proposals with the industry and with consumers before developing them further for possible inclusion in the Building Bill" she said.
"The Bill aims to improve inputs into the building process and the overall effectiveness of controls in the building industry, so buildings are built right first time. But the Bill doesn't cover off a couple of important protections for homeowners in case things go wrong."
The Bill doesn't directly control or regulate developers. Nor does it regulate the sale of buildings or the financial capacity or willingness of building practitioners to meet their obligations for any defective work.
"While the Bill does provide for statutory warranties, which will improve the legal rights of homeowners, it doesn't include methods for enforcing those rights. The MED paper looks at this issue and proposes a package of measures to address it," Lianne Dalziel said. The paper is available on the MED website www.med.govt.nz
Submissions close on 15 October and should be sent to: Building Review Regulatory and Competition Policy Ministry of Economic Development 33 Bowen St PO Box 1473, Wellington Or by email to: buildingreview@med.govt.nz
The Ministry will analyse any submissions and/or
feedback received during the submission period in developing
the proposals further for possible inclusion in the Building Bill by way of a Supplementary Order Paper.
The Government Administration Select Committee, which
is currently considering the Building Bill, would then
consider that Paper and may ask for submissions on it.
For further information on the Select Committee process see www.clerk.parliament.govt.nz/programme/committees/submissions
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