Statement of Intent 2006/2009

Our Strategies

On this page

• Strategy: Regulations and standards that deliver better quality and enable innovation in building and housing practices
• Strategy: Better professional behaviours, skills and standards accross the sector
• Strategy: Bettter awareness and understanding of building and housing issues
• Strategy: More accessible and connected services
• Strategy: Working better with the sector
• Strategy: Increased support to responsible Ministers on governance and performance of Crown entities and statutory boards

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Strategy: Regulations and standards that deliver better quality and enable innovation in building and housing practices

What we will do

We will establish effective and clearly understood regulations and standards that will:

• provide clear information on the performance requirements of buildings
• provide clearly defined rights and obligations
• ensure, when complied with, that buildings are well built
• provide effective means to resolve disputes
• encourage building and housing stakeholders to communicate clearly and effectively about expectations and requirements
• enable and support innovation in building systems that meet quality standards.

Why we will do it

Intermediate Outcome

Buildings and homes that perform well in the New Zealand environment.

The New Zealand regulatory regime sets rules and standards necessary for safe and healthy buildings for the benefit of all users. The Building Act 2004 regulates the quality of buildings and building work, and operates alongside other regulations that set minimum standards across the building and housing sector.

Other areas of regulation also impact on the quality of buildings. These include occupational licensing and regulation covering professions and trades, and regulation of the residential tenancies market and unit titles. This regulation ensures buildings are built and maintained to defined standards of quality and property rights and obligations are clearly defined.

The building regulatory regime is a performance-based system designed to ensure building work is safe and healthy, offers appropriate amenity and is sustainable. It is a systems approach, combining a set of tools to bring about change in the performance of the building and housing sector. The building controls regime depends on a strong and effective relationship between the Department of Building and Housing, which sets the frameworks, rules and standards and building consent authorities who administer these rules and standards. Developing better and clearer rules and standards will ensure the building and housing sector can readily understand and apply them. 

Building controls are used to ensure buildings are safe and healthy places to live and work in. In New Zealand, these controls are largely set out in a two-part framework.

• The Building Act 2004 sets out the law on building work. This applies to the construction of new buildings and to maintaining, altering and demolishing existing buildings.
• The Building Regulations contain the New Zealand Building Code and the rules about building consents and inspections. The Building Code sets out performance standards that all building work must meet, and covers aspects such as fire safety, access, moisture control, durability, services and facilities.

This approach will lead to better outcomes for all parties, including:

• buildings being built properly first time
• less costly rework (in terms of time and resources)
• fewer disputes and simpler and lower-cost dispute resolution processes
• capable and accountable building practitioners
• a well-functioning rental housing market.

How we will do it

By working with the sector, stakeholders and other parts of government, we will create standards that are robust, clear and fair. This includes groups that represent:

• consumers
• professionals (eg, architects, designers, engineers)
• the building and construction sector
• local and central government agencies.

We will investigate and resolve complaints about building consent authorities and accreditation bodies, and issue determinations.

We will work with local and central government agencies and representative groups from the sector to identify ways to improve the quality of the existing building stock.

What we will deliver

Over the next year we will progress a comprehensive review (as required by the Building Act 2004) of the New Zealand Building Code, the first since it was established in 1992.

The purpose of the review is to ensure that the Building Code:

• meets the requirements of the Building Act 2004
• is stated in sufficient detail to provide clear guidance on the performance standards that buildings must meet to ensure compliance
• supports innovation in building systems that meet quality standards.

Changes to the Building Code will promote energy efficiency, sustainable development and the positive effect of buildings on health.

Consultation on the scope and content of the Building Code will be completed in 2006/07. Preparation of detailed recommendations will then be under way to enable the final report to be provided to the Minister for Building Issuesin November 2007.

The Residential Tenancies Act 1986 regulates the rental housing market by defining the rights and obligations of landlords and tenants. Balancing the social needs of tenants for housing with business needs of landlords is a critical issue. The housing environment has changed a lot in the 20 years since the Act came into effect. In particular, the operation of the private rental sector is now more important to economic and social outcomes of New Zealanders than it was in 1986.

The Unit Titles Act 1972 was created to cover a type of property ownership known as unit title. Developments of this type usually have more than one owner, and are typically apartment blocks, townhouses, office blocks and industrial or retail buildings. Each owner owns a defined part of the building and also shares ownership of common property, such as lifts or drive-ways, with other unit owners.

Since 1972 the number of mult-unit homes has increased substantially and become an important part of New Zealand's housing. Issues have emerged that need to be addressed to ensure the law governing these properties is relevant and effective.

Other key building regulatory activities include:

• implementing the accreditation regime for building consent authorities and assisting them to prepare for registration in November 2007
• developing a product certification system that provides greater assurance around building product performance
• implementing a dam safety regime to provide greater assurance about public and property safety
• investigating and resolving complaints relating to the application of the Building Code and issuing determinations.

Other key activities include:

• progressing legislative proposals for updating the Residential Tenancies Act 1986
• working with the Ministry of Justice and Land Information New Zealand to progress legislative proposals for updating the Unit Titles Act 1972
• advising on an effective framework for resolving building-related disputes
• reviewing the adequacy of existing standards for housing
• investigating mandatory home warranty insurance for new domestic dwellings, and for significant repairs and renovations
• investigating professional indemnity insurance to accompany the new occupational licensing regime
• monitoring and reporting on the performance of the building and housing sector, including input to developing statistics to measure the quality of the existing housing stock
• actively participating in wider government programmes of work to improve the design and quality of the built environment, including the Urban Design Protocol, the Auckland Growth Strategy and the Sustainable Cities Programme.

How our outputs contribute to the strategy

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 Strategy: Better professional behaviours, skills and standards accross the sector

What we will do

We will promote the professional skills, standards and behaviours that are needed for a quality building and housing sector. This will contribute to improved design, construction and inspection of buildings and provide better housing that meets New Zealanders' needs in the New Zealand environment.

Why we will do it

Intermediate Outcomes

- Homes and buildings that meet the changing needs of New Zealanders.
- A vibrant building, construction and housing sector with skilled building and housing professionals.

The building and housing sector needs the capacity and capability to meet the requirements of the market. Regulators need the capacity and capability to develop and apply the building and housing regulatory regime.

Skilled and capable people and organisations are necessary to achieve the Government's outcomes for the sector. We administer regulations that set standards for the skills and capabilities of building and housing professions, and those who administer the regulatory framework at the local level. These regulations complement other elements of the regulatory framework to ensure buildings are safe and healthy, disputes are handled appropriately, and public confidence in the sector is maintained and enhanced.

To be effective, the building control regime requires:

• us to be effective at the central level
• relevant authorities to be effective at the local level
• the building and housing sector to be effective at applying the regime.

A major area of focus for us is implementing the licensed building practitioner provisions of the Building Act 2004. The licensed building practitioners' scheme will lift the capability and accountability of building practitioners. Starting voluntarily in 2007 the scheme will apply to significant building projects only. For such projects, design and construction work will need to be certified by an appropriately licensed building practitioner from November 2009; from November 2011 work related to the structural integrity and external envelope of a building will be restricted, and will have to be supervised or carried out by practitioners with the appropriate trade or specialist licence. Most of the work being done by DIYers on their homes will be able to continue. The only DIY work that will need to be supervised and certified by a licensed building practitioner will be work that substantially impacts on the strength and integrity of the home or building. Most of the work being done by DIYers on their homes will still be able to be done exactly as it is today. The only DIY work that will need to be supervised and certified by a licensed building practitioner will be work that substantially impacts on the strength and integrity of the home or building.

We will also undertake activities designed to improve the capability of territorial authorities in administering the building regulatory system.

How we will do it

We will:

• work with professions and trades across the building and housing sector to set national standards for demonstrating competence and skill
• work with qualification providers and education providers to ensure there are appropriate qualifications and courses for building sector professionals, tradespeople and building officials
• develop, in consultation with the building and housing sector, resources that guide and advise them on their rights and obligations.

What we will deliver

Over the next 3 years we will:

• monitor and report on performance, skills and competencies across the building and housing sector
• develop, implement and maintain registration and licensing regimes for building practitioners. In 2006/07 we will develop:
  • rules and regulations for licence classes, complaints, fees and levies, as applicable
  • processes for assessments, complaints, appeals, fees and levies effective from 1 November 2007
  • information technology and business support systems.
• develop, implement and maintain registration and licensing regimes for electrical workers. We will effect the transfer of the electrical workers registration system from the Ministry of Economic Development from 1 September 2006.
• upskill building officials. In 2006/07 we will:
  • help to establish a national qualification for building officials
  • establish the accreditation and registration systems for building consent authorities
  • provide guidance and information to building practitioners and regulators
  • provide assurance of building consent authorities’ performance.
• upskill property owners and managers. In 2006/07 we will:
  • implement the Community Education and Liaison Strategy to promote an informed and confident rental market by educating and working with market participants. This will include implementing strategies to improve the quality of business and property management practices of landlords.
  • provide information and advice to the housing industry aimed at raising the standards of property and property management.
• investigate and advise on barriers to institutional investment in rental housing.
• investigate mandatory home warranty insurance for new domestic dwellings and for significant repairs and renovations.

How our outputs link to the strategy

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Strategy: Bettter awareness and understanding of building and housing issues

What we will do

The Department is committed to promoting greater awareness and understanding of housing and building issues among consumers.

We will improve access to information for consumers about their rights and obligations so:

• they can make informed decisions and undertake transactions with confidence
• those providing services in the building sector are better able to do their jobs.

Why we will do it

Intermediate Outcomes

- Homes and buildings that meet the changing needs of New Zealanders.
- A vibrant building, construction and housing sector with skilled building and housing professionals.
- Confident owners, tenants and users.

We know we cannot effect positive change without achieving these outcomes. These actions will:

• allow consumers and the sector to access the right information to make informed decisions
• reduce poor-quality construction, reduce disputes and lower transaction costs
• result in less government intervention (and its associated costs).

How we will do it

This strategy involves the Department working with stakeholders to develop information in the best form and delivered in the best way to ensure the sector and consumers understand their rights and obligations.

What we will deliver

Over the next 3 years we will:

• undertake public information and education initiatives to raise awareness and understanding of building and housing sector issues, leading to better informed consumer and practitioner behaviour
• provide information to better inform homeowners and prospective homeowners of weathertightness issues and how these can be addressed and remedied.  

How our outputs link to the strategy

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Strategy: More accessible and connected services

Social Services Cluster
The Social Services Cluster aims to better integrate the services of the Ministry of Social Development, Child, Youth and Family Services, Housing New Zealand Corporation and the Department of Building and Housing for common clients.

The cluster enables us to develop practical and effective ways of working together. We are committed to working with each other, and with other government and non-government agencies, to help deliver the best possible results.

Our commitment to working together recognises that our clients often have multiple needs that are best addressed together, instead of being dealt with by different agencies.

The Department is working with other members of the cluster on implementing the New Zealand Housing Strategy and other strategies to achieve results for shared clients. An example of this approach is the Care to Independence project. This project involves the Department working with the Ministry of Social Development and Housing New Zealand Corporation to better support young people moving from institutional care to independent living.

What we will do

We are committed to providing high-quality services that are accessible to our clients and connected to the different communities we serve.

We will:

• provide improved access to services for our clients in ways that better suit them and support them to operate with confidence
• work as a network with other state agencies so there is ‘no wrong door'to state services
• ensure our services are connected to the different communities we serve
• work to lower transaction costs for our clients.

Why we will do it

Intermediate Outcome

Confident owners, tenants and users.

For the building and housing sector to operate well, our clients need to be able to use services that assist them to transact with confidence. Our clients need to be able to:

• find the right information easily to make informed decisions
• be aware of and understand their rights and obligations
• have access to efficient and effective services to resolve disputes.

How we will do it

We will:

• implement new service delivery models for Tenancy Services and the Weathertight Homes Resolution Service
• provide advice to the Government on options for an integrated approach to tenancy, homeowner and building disputes
• work with the other Social Services Cluster agencies to better connect our services for common clients and provide greater ease of access.

Housing Strategy
The Government is committed to ensuring those on low and modest incomes or with special housing needs receive the help they require to find and stay in affordable, good quality housing.

The Government's housing strategy sets out the priorities for housing and a programme of action over the next 10 years. It covers sustainable housing supply, assistance and affordability, home ownership, the private rental sector, housing quality, sector capability and meeting diverse needs.

The Department is part of the steering group overseeing the strategy.

What we will deliver

Over the next 3 years we will:

• enhance the performance of the Weathertight Homes Resolution Service (WHRS) by:
  • streamlining the management of the overall WHRS process
  • improving the effectiveness and efficiency of each stage within the WHRS process (assessment, mediation and adjudication)
  • allowing homeowners to claim for probable weathertightness damage as well as evident damage to their houses
  • introducing a ‘class action’ approach to help with registering claims and resolving disputes for owners of units within multi-unit apartment complexes
• further address the legacy of non-weathertight buildings, in addition to measures already under way as the Building Act 2004 is implemented, by introducing measures to encourage and facilitate early repair of buildings so that repair work is carried out according to best practice
• work with members of the Social Services Cluster to implement the New Zealand Housing Strategy and other strategies to achieve shared outcomes for common clients
• implement a new service-delivery approach for dispute resolution within Tenancy Services
• monitor and evaluate the changes to how Tenancy Services are delivered
• work with and through other organisations to provide education and information to target groups in the rental housing market
• consider ways to improve access to housing for people with disabilities.

How our outputs link to the strategy

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 Strategy: Working better with the sector

What we will do

The Department is committed to collaborating and working in partnership with the sector to enhance our knowledge and understanding of the sector and issues affecting housing, building and construction. This ensures future standards are informed by the views and ideas of those involved in design, construction and administration of regulation at the local level.

We will work with sector groups to:

• form and maintain strong relationships
• ensure there is active consultation
• ensure those groups in the sector who work with consumers are better informed and more aware of building- and housing-related matters
• ensure there is a good understanding of the outcomes the Government is seeking for the sector.

Why we will do it

Intermediate Outcomes

- Homes and buildings that meet the changing needs of New Zealanders.
- A vibrant building, construction and housing sector with skilled building and housing professionals.
- Confident owners, tenants and users.

We know we cannot effect positive change without working collaboratively with sector groups. Our actions will:

• assist the sector to access the right information to make good decisions
• reduce poor-quality construction, reduce disputes and lower transaction costs
• result in less government intervention (and its associated costs).

How we will do it

This strategy involves the Department:

• establishing, maintaining or participating in a range of forums and working groups that enable the participants to share information and address issues of mutual concern
• working with stakeholders to develop information in the best form and delivered in the best way to ensure the sector and consumers understand their rights and obligations, and can make decisions and undertake transactions with confidence
• monitoring and reporting on sector information. As well as developing our capability to monitor the sector, we will actively contribute to a better understanding of the significance of the building and housing sector to the Government's housing outcomes. This includes the sector's capacity to meet increasing demands for high-quality and affordable housing, and developing a better understanding of the factors that affect the supply and cost of housing. Another aspect is maintaining awareness of national and international research developments and promoting improved coordination of housing and building research in New Zealand.
• establish and maintain proactive and constructive relationships with key external stakeholders to ensure good feedback on and input to the work of the Department.

What we will deliver

To be successful the Department must have a good knowledge of the sector as the basis of engagement with it. To this end we are developing our sector monitoring capability, and leading or participating in a number of collaborative forums.

Over the next 3 years we will:

• develop a sector monitoring strategy to improve the Department's and the Government's understanding of the sector, including supply and demand in the housing market
• work with the local government sector through forums such as the Department/Local Government Governance Group, the Regional Authority Working Group, the Deputy Secretaries Group, and other advisory and working groups
• through the work of the Chief Executive's Building Advisory Panel, look to identify longer term strategic issues
• collect, analyse and disseminate industry and market (building and housing) performance data
• collect and disseminate recent local and international building research and performance information relevant to New Zealand conditions and buildings
• develop an evaluation strategy to ensure the Department's services and regulatory interventions are effectively contributing to the Government's outcomes and objectives for the sector
• influence, coordinate and commission research into the building and housing sector.

How our outputs link to the strategy

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Strategy: Increased support to responsible Ministers on governance and performance of Crown entities and statutory boards

What we will do

We are committed to providing support to responsible Ministers through high-quality monitoring and reporting on the performance of statutory bodies and boards charged with providing building- and housing-related services and functions. This includes evaluating and providing advice on delivering the Government's social housing policies through Housing New Zealand Corporation, and advice on appointments and the performance of other building and housing entities (for example, occupational licensing boards).

Providing social housing effectively and efficiently contributes to improved social outcomes for New Zealanders. Our monitoring of Housing New Zealand Corporation's performance will help to ensure the Government has confidence in the Corporation's performance. We will work with the Housing New Zealand Corporation Board and staff in undertaking this role. We will also support Ministers in meeting their legislative obligations regarding Crown entities and statutory boards.

We will:

• provide advice to responsible Ministers on Housing New Zealand Corporation's key accountability documents
• provide advice to responsible Ministers on the Corporation's operational activities (and statutory boards where appropriate) to ensure the Ministers receive independent advice on any proposals, particularly where they have financial implications
• coordinate Budget processes relating to Vote Housing (in accordance with Treasury budget timelines and processes)
• provide advice to Ministers on Crown appointments to building and housing entities, and monitor the performance of those Crown entities and boards
• work with Housing New Zealand Corporation and statutory boards to ensure the Government's wider context and priorities are taken into account in their decision processes, and assist their knowledge and compliance with government processes.

Why we will do it

Intermediate Outcome

Homes and buildings that meet the changing needs of New Zealanders.

For the building and housing sector to operate well, responsible Ministers need high-quality advice on:

• performance objectives and governance arrangements in Crown-owned and statutory entities
• government funding and budget processes for building and housing.

Statutory appointments and governance

The following Crown appointments are administered and/or monitored by the Department.

• Registered Architects Board (Registered Architects Act 2005)
• Architects Education and Registration Board, Architects Investigation Committee (Architects Act 1963)
• Chartered Professional Engineers Council (Chartered Professional Engineers Act of New Zealand 2002)
• Engineering Associate Registration Board (Engineering Associates Act 1961)
• Plumbers, Gasfitters and Drainlayers Board (Plumbers, Gasfitters and Drainlayers Act 1976) - from January 2008
• Building Practitioners Board (Building Act 2004)
• Electrical Workers Registration Board (Electricity Act 1992) - from 1 September 2006
• State Housing Appeals Authority (Housing Restructuring Appeals Regulations 2000)
• Weathertight Homes Resolution Service Adjudicators and Mediators (Weathertight Homes Resolution Services Act 2002)

The Department also provides support to the following appointments.

• Chief Executive's Building Advisory Panel (Building Act 2004)
• Retirement Villages Disputes Panel (Retirement Villages Act 2003)
• Tenancy Tribunal (Residential Tenancies Act 1986)

The Department's role includes:

• providing advice to Ministers that helps ensure people with the right mix of knowledge and expertise are appointed to boards
• monitoring the performance of boards and reporting to the Minister appropriately ensuring output agreements are in place with all boards
• promoting the review of Acts and Regulations when the functions have become limiting for the board, or the operating environment of the board has substantially changed
• ensuring the boards are discharging their regulatory functions effectively. 

How we will do it

We will:

• develop and maintain a comprehensive understanding of the business of Housing New Zealand Corporation and the sectors within which it operates, and the functions of the statutory boards for which it has responsibility to ensure the Department is at the forefront of monitoring best practice within the state sector
• ensure the Ministers' obligations as responsible Ministers for Crown entities and statutory boards are met
• ensure effective administration of Vote Housing.

What we will deliver

Over the next 3 years we will provide advice to responsible Ministers on:

• Housing New Zealand Corporation's key accountability documents, including the:
  • ministerial letter of expectations
  • Corporation’s Statement of Intent
  • Corporation’s Business Plan
  • Corporation’s 2005/06 Annual Report
  • Corporation’s quarterly reports
  • Corporation’s Output Agreement
  • Review of Financial Governance
• reports that relate to the Corporation's operational activities as a Crown entity to ensure the Minister of Housing receives independent advice on any proposals, particularly where these have financial implications. These reports will include the:
  • Review of Rural Housing Products
  • Review of Lending Products.
• government funding and budget processes in relation to Vote Housing (in accordance with Treasury budget timelines and processes)
• the administration of the Corporation's Income Related Rent (IRR) subsidy
• output agreements and annual reports for other boards or entities, as required by statute
• Crown appointments and statutory board monitoring.

How our outputs link to the strategy

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