Venue: Energy Events Centre, Rotorua
Time: Monday, 2 April 2007, 9.15am

The Chief Executive of the Building Officials Institute of New Zealand Len Clapham, and the Institute's President, Tim Weight; His Worship, the Mayor of Rotorua, Kevin Winters; International Code Council President Wally Bailey and his wife Lynette; all members of the Building Officials Institute; distinguished guests; ladies and gentlemen.

Good morning. It is a pleasure to be here and to have this opportunity to address you at such a crucial time amid the suite of reforms that are transforming the building and construction sector. And I am particularly happy to be talking with you, as the people who authorise building work, because you are such key players in that transformation.

I want you to know that as we come closer to the November 30 date this year for your organisations to become accredited and registered as Building Consent Authorities (BCAs) that, more than ever, it is crucial that we work together, that we talk to each other, listen to each other, and, most importantly of all, act to make the new system happen. It is a matter of teamwork.

I am not coming to you today with easy answers, because change is challenging. It is a demanding process and it needs determination and commitment.

When I spoke to you at your conference last year, I used the imagery of you as the referees in a game of rugby. There are few roles more important than that of the referee. To a huge extent, they dictate the quality of a match, and so it is with your role in the building and construction sector.

That imagery, therefore, remains as relevant today as it was then.

And there is a lot going on around the ‘game’ right now. There are a lot of changes in many areas, and you are at the centre of some of the most important of them.

What is required are straight-up, transparent calls that are consistent, fair and informed. And that is just what is required of you in the area of building and construction. You have to deliver certainty; administer the rules rigorously, consistently, and fairly to ensure the ‘game’ flows.

The building and construction sector is your sector. Many of you have years of experience on building sites all over this country. And while you are ‘off the tools’ now, your work as building officials relies on the high level of knowledge and expertise you bring to your profession.

And you don’t muck around. A spade is a spade. You have to be direct and to the point in your line of work. I like that. And I want you to know that you will get the same approach from me.

The Big Picture

We all need to be very clear that the driver behind the suite of reforms taking place in the building and construction sector – the real impetus for change – is not just the Government. New Zealanders want better buildings. We are increasingly aware of and expecting better quality construction in every respect.

And the building industry itself wants an environment in which it can provide them. And that really is at the heart of all the changes in the sector today.

However, to get there involves social, economic and technological development in equal measure, development that must have innovation, smart problem solving, and co-operation across the sector if it is to succeed.

So where are we at this moment? And what do we need going forward? Well 2007 is a very important year for building and construction in New Zealand. Many of the systems set up by legislation will come online in the very near future – indeed, come November of this year, as well as the registration and accrediting of BCAs, there will be:

·Registration for the first set of building sector occupational licensing classes. A total of 13 licences will be rolled out progressively from this November, starting with the design, site lead and carpentry classes. Starting on a voluntary basis to enable testing, the new Licensed Building Practitioner regime will help ensure that homes and buildings in New Zealand are designed and built right the first time.

·A product certification scheme will be in place. While this is by no means a silver bullet for ensuring homes are built to the required standards, it will help you in your work as building officials, by giving you better information on the performance of the products certified under the scheme.

I am pleased to note that the Government is not alone in working to improve the quality of information available on building and construction products in the marketplace. BOINZ is one of those taking a lead in this area. It stands to reason that the more we know, the better our decisions will be on what products can be used in the designs you are consenting, so I commend you on your work.

·Along with the core Building Act reforms, there will likely be new legislation on the housing front, including renting, multi-unit complexes, and changes to dispute resolution models

·Speaking of dispute resolution, the reforms rolling out from the Weathertight Homes Resolution Services Act 2006 came in quite literally yesterday. The result will be faster resolution of claims, so affected homeowners can get compensation from the liable parties, get their homes repaired and get on with their lives.

·A pilot financial assistance scheme involving market rate loans and loan guarantees is now also in place, to help claimants in difficult circumstances get their homes fixed first and argue liability second.

·The Government is also investigating home warranty insurance options as another step in protecting homeowners and future-proofing the industry

These are just some of the changes transforming the building and construction sector this year.

Building Consent Authority accreditation

Of course, the key change that will interest and affect you the most is the auditing and the accrediting of councils as Building Consent Authorities (BCAs).

The accreditation scheme is designed to improve the quality of building controls and the building stock in this country. That is a clear goal and one that the Government is completely committed to achieving.

It is a goal that I trust, you as skilled, committed professionals, are also determined to achieve. The reason we share that goal is pretty simple - New Zealanders deserve to be assured of the quality of the building consents they pay good money for, and the quality of the houses that are built for them.

And again, the reforms are not just being driven by the Government.

Homeowners, coming off the back of the leaky homes problem, are more aware than ever of issues surrounding the quality of their homes, and rightly expect to get good, solidly built, weathertight homes. They deserve no less and the entire suite of sector reforms is targeted at precisely that.

It is easy to get tied up in all the changes going on, but I like to bring all the reforms, all the change, all the demands back to one very simple philosophy – we want New Zealand houses built right the first time.

I never tire of saying it. It is my mantra and it drives everything the Government is doing today in the building and construction sector.

It really is that simple. And it is going to be achieved. New Zealand and New Zealanders are going to return to a world-class building and construction sector because of these reforms.

A substantial part of achieving that is the auditing and accreditation of building consent authorities.

And again – and this is very important – let me be very clear: territorial authorities across this nation are responsible for being accredited and registered by 30 November this year, or if they are not, then they will lose the right to issue building consents, and an adjacent local authority who has the accreditation standard will likely take over that function.

Is the accreditation process demanding? Yes it is. I acknowledge right here and now that I am aware that you face some real challenges.

You feel pressured for time. You face a shortage of qualified and capable people in the building controls area – obviously not helped by a tight employment market being faced across New Zealand at present. Some of you may be daunted by the regulations stating what you need to do.

Is the timing perfect? No, but it never will be. And when we look at big projects, there never seems to be enough time, but these changes have been signalled since the Building Act 2004 came into force. There is no surprise factor here.

Your organisations’ planning for assessment to gain accreditation should be well under way by now. And the key area of focus must be what needs to be in place for you to meet the requirements for November 2007. But again, you are not doing it all alone. We are supporting you.

The whole accreditation process is the result of extensive consultation. Indeed, three rounds of consultation were entered into – two on standards and criteria, and one on fees. Local Government New Zealand, BOINZ and local authorities were all consulted and contributed significantly to the shape of the accreditation programme now being implemented.

The Government, through the Department of Building and Housing, has been working closely with you, and will continue to do so – most notably through the $3 million assistance package that I announced last October and that has been specifically designed to help get you ‘over the line’ come November 30.

The programme’s initiatives include a network of 11 case advisors, a series of workshops for council officers and promoting the availability of government funding to help your organisations meet accreditation requirements.

The case advisors have project management, building sector, local government and/or quality systems backgrounds. Each has been allocated a group of councils to assist. Their work includes:

·conducting initial needs assessments to help councils understand the scope of work they need to do to meet accreditation standards
·supporting councils’ applications for funding support
·helping councils access information resources
·ongoing advice as councils prepare for accreditation.

Ten two-day workshops are intended to be held around the country to explain accreditation processes and requirements. The first of the workshops were held in Auckland and Hamilton last week. Further workshops will be organised during the accreditation process.

And add to that the direct funding available to councils to enable them to bring in external resources for accreditation-related projects. A steering group made up of Department of Building and Housing, Local Government New Zealand, BOINZ, the Society of Local Government Managers and council representatives will consider applications for this funding at the end of each month.

The Department is also working with Local Government New Zealand and the cluster groups that some councils have formed specifically to deal with the accreditation process. When I addressed your conference last August I believe seven cluster groups had been formed at that time, and I am advised that there are up to 10 such groups operating. I congratulate you on these initiatives. Cluster groups are a clever way to go in terms of pooling resources and expertise, especially among the smaller territorial authorities.

The Department has also provided your organisations with substantial amounts of guidance material over the past two years, and a self-assessment guide, which includes examples of how territorial authorities can meet the standards and criteria for accreditation.

And the help and the support from central Government and the Department of Building and Housing will continue to be there, as we move through the process. And we are open to suggestions on how we can further assist.

However, it is important to remember, that in the end, it is the responsibility of territorial authorities to get accredited. You have had access to the detail of the standards and criteria for four months now, since they were gazetted. Indeed, their shape has been pretty clear for a year or two now. You have them and I urge you to work with them.

International Accreditation New Zealand, or IANZ as you more commonly refer to it, is in place as the consent accreditation body for the scheme. IANZ is internationally recognised as a leader in accreditation and quality assurance services, and is ready to work with you now.

Accredited Building Consent Authorities are going to be your new professional reality. The past is the past, and there are new challenges to be met. They are now clearly laid out in front of you.

The Government has committed itself to taking every step to help ensure there will never be a repeat of the leaky buildings issue and the shoddy workmanship that went alongside it. It has committed to, and taken huge steps towards, updating and professionalising the whole building and construction sector.

The reforms that have been put in place are inter-dependent and part of a whole; but equally, to make them work, all in the sector must also work together and see the way in which they link to other disciplines, skills and trades.

And it is in that context that I tell you directly that your professional skills and abilities as building officials are critical to the success of the whole system.

I have a lot of confidence in your ability to rise to the challenges you face today.

For your part, you should expect the territorial authorities or building consent authorities for which you work to support you with better systems, resources and increased training to allow you to do your jobs at the highest level possible – in fact, the new regime requires that of them. You have to have the proper tools to perform your vital building consent work.

And it is important to remember that BCAs can fully recover these accreditation costs through the fees you charge building consent applicants. We are talking about user pays, not an increased burden on the ratepayers. And for many Kiwis, I am sure that is money well spent for peace of mind and security in respect of their greatest asset – their home.

Building Code Review

You are also no doubt taking considerable interest in the full review of the New Zealand Building Code, which is due to be reported back to me in November.

Our Building Code is performance-based, and was world-leading when it came into force in 1992. It stresses objectives rather than requirements. The reason for this is to ensure that buildings meet certain performance standards without sacrificing innovation. I am sure your industry in particular appreciates the flexibility this allows.

Public consultation to date has clearly shown the key issues and expectations as:

·the need for leadership and ‘lifting the game’ for building performance requirements
·a desire for greater sustainability and energy efficiency
·a stronger focus on affordability
·an awareness of the differing needs of groups within the sector
·the need to improve the interface between building legislation and the Resource Management Act, which is our main piece of legislation setting out how we can sustainably manage our environment.

The feedback has been invaluable in ensuring that the review is on the right track.

The review will change what we build and the way we build, because we expect a lot more from our buildings than we did even 15 years ago. There have been significant advances in construction technologies and in our knowledge of building products and performance. A modern Code must reflect that, and when it does, you will be the people who consent and approve the work that comes from it.

Energy efficiency

The Government also plans to introduce measures to improve the energy efficiency of buildings later this year, ahead of the completion of the Building Code review.

Late last year, we announced proposals around energy efficiency as part of the Government's programme to reduce the amount of energy required to heat new homes, to heat water in new and existing homes, and to light, heat, ventilate and air condition commercial buildings.

The work programme consists of four main initiatives, which are:

·Higher thermal insulation performance requirements for new homes
·Making it easier to install solar water heating systems
·Improving lighting in commercial buildings
·Improving heating, ventilation and air systems in commercial buildings

We have publicly consulted on the first three measures, and the results are currently being considered by the Cabinet. Consultation on heating, ventilation and air conditioning systems, and domestic hot water systems will begin shortly.

Licensing of Building Practitioners

Of course Building Consent Authority accreditation, the Building Code, and product certification, of themselves cannot do the job standing alone. It relies on a whole system of many parts that come together as one. In many respects, it is like a jigsaw puzzle.

And another significant element of that is the Licensed Building Practitioner scheme that will raise quality levels among our builders, tradespeople, architects and designers.

The scheme will help ensure that homes and buildings in New Zealand are designed and built right the first time. It will improve the quality of our home and building stocks, recognise and support skills development, and give consumers more confidence in the houses and buildings they buy.

In closing, I do want to acknowledge the work you do. I want to acknowledge the challenges and huge benefits that lie ahead with Building Consent Accreditation. I want to assure you that you are being heard, and that the Government is committed to working with you on successfully achieving this very important aspect of the building and construction sector transformation.

You are going to hear more during this conference from Departmental staff, addressing your issues, answering your questions, and helping you and your organisations to make this happen.

Good luck with your conference. 2007 is a Rugby World Cup year, and I look forward to some world-class refereeing, both on the pitch and on the building sites of New Zealand.