Valuation New Zealand To Be Reorganised

  • John Delamare
Valuation Department

Valuation New Zealand (VNZ) is to become a Crown Owned Company and will lose its service monopoly, the Minister in Charge of the Valuation Department, and Associate Treasurer, Tuariki John Delamere announced today.

"This will see improved efficiencies in Valuation New Zealand and a competitive environment which will result in savings for local body authorities. The move should also have positive flow-on effects for ratepayers," Mr Delamere said.

Valuation New Zealand currently assesses a Government Valuation (a Capital Value and a Land Value) for all properties in New Zealand. These values are then used as the basis for most local government rates.

"From 1 July 2000, local government authorities will be able to choose their valuation provider," Mr Delamere said.

"Contestability will be phased in during the two years preceding this date, with Government Valuations continuing to be provided at least until that time.

"Valuation New Zealand will lose its departmental status and become a Crown Owned Company. It will compete with other valuation providers for contracts with individual local government authorities as well as other valuation work.

"It is expected that the loss of the monopoly by Valuation New Zealand will result in improved efficiencies. As local government currently pays a significant portion of Valuation New Zealand's costs, any efficiencies are likely to result in lower costs, benefiting ratepayers."

Mr Delamere said that as part of the reorganisation, an office of the Valuer General will be established within Land Information New Zealand.

"This office will be responsible for setting standards which will have to be met by any valuation organisation tendering for local government rating related work. The Office of the Valuer General will also be responsible for monitoring those standards and ensuring they are met on an ongoing basis.

"As part of the reorganisation, elements of the databases of Valuation New Zealand and Land Information New Zealand will be merged in the short term. These databases deal with much the same information, and will generate significant benefits and savings. Further integration of the two systems in the future will also provide the basis for further savings."

Mr Delamere said the reorganisation of Valuation New Zealand will result in a more viable and efficient service.

"This will be the basis for a nationally consistent, impartial, independent and more equitable valuation system.

"These changes will not affect homeowners in any way with all properties continuing to have a Government valuation."

Mr Delamere said that the reorganisation was not expected to have an immediate impact on staff levels.