Address to the Master Plumbers Annual Conference 25 March

Acknowledgements:

Fiona Gavriel, Chief Executive, Master Plumbers, Gasfitters and Drainlayers NZ

Introduction:

Good morning and thank you for inviting me here to speak at the 110^th Annual Conference of the Master Plumbers, Gasfitters and Drainlayers Association.

The Association has had a long and colourful history and I applaud the association’s tenacity and determination in protecting the health and safety of the public and the integrity of the trade.

2011 marks a new era for the Master Plumbers, Gasfitters and Drainlayers Association, and the building and construction sector as a whole.

You will be aware that the Government has agreed a package of changes flowing from last year’s Building Act Review.

Today I’ll give you a summary of the key changes and I will also touch on the changes we’ve introduced following the report of the Office of the Auditor General’s Report.

I’ll also provide a brief update on the occupational regulatory review.

Outcomes from the Building Act Review

●On 12 August 2010, I announced the Governments response to the Building Act Review. The review found:

• current system is more costly and less efficient than it could be
• few incentives to improve productivity
• it is difficult for homeowners to hold those who did the work to account.

Change is needed and I am not just talking about the Government changing the law.

I am talking about culture change in the building and construction sector, so that everyone takes pride in their work and stands behind it.  There are many good people doing good work in the sector but the behaviour of a few has dented confidence, and that behaviour has to change.

Our goal is to achieve a more efficient and productive sector that stands behind the quality of its work. Quality is the key word - in any change quality must come first.

What does that mean in practice?  It means:

• a sector that has the necessary skills and capability to ‘build it right first time’ and that takes pride in its work
• a sector that delivers good quality, affordable homes and buildings and contributes to a prosperous economy
• a well-informed sector which shares information and quickly identifies and corrects problems
• a sector where everyone involved in building work knows what they are accountable for and what they can rely on others for
• a sector where consumers make informed decisions and understand the risks and consequences of their decisions

So how do we get there?

We took the first steps in December with the introduction of the Building Amendment Bill (No 3), which is currently being considered by the Select Committee, and amended Schedule 1 to free up more low risk work from needing consent.

The Bill focuses on:

• clearer accountability and
• more efficient regulation.

It proposes amending the Building Act 2004 to make it clearer that the buck stops with the people doing the work. It will spell out clear accountabilities for designers, trades people, building owners and building consent authorities.

It provides for an owner builder exemption from the restricted building work regime in the Act. 

Do-it-yourselfers will have to employ licensed building practitioners to supervise or carry out restricted building work.  The work must still meet the requirements of the Building Code and, like professional building practitioners, they will still be accountable for the work they do. 

The Bill also proposes changes to the current building consent process to allow for risk-based consenting. This will see the amount of checking and inspection directly aligned to the risk and complexity of the work and the skills and capability of the people doing the work.

The risk-based consent system will only be introduced when we have confidence in the quality of building work being done. Pre-conditions include having a sound base of up-to-date licensed building practitioners who know how to comply with the Code. 

This is one of the most important steps this Government has taken in working toward our goal for the sector. Again, this is about a sector people can have confidence in, and where practitioners take pride in their work and stand behind it.

This brings me to the subject of occupational licensing.

Occupational licensing

Occupational licensing is key to maintaining standards and ensuring practitioners stay up-to-date. Poor performers, as well as those who are practicing illegally, not only place consumers in harms way, but they also devalue your trade.

Up-to-date trades people whose work is of a high standard and who stand behind their work are the publics best safeguard against poor quality building work, and I expect you, as members of the Master Plumbers, Gasfitters and Drainlayers Association, to champion this message.

Continuous professional development

I am aware that there have been some concerns raised about the way continuous professional development has been rolled out and the need for practitioners to engage in CPD as a condition of their annual practicing licence from March 2012.

This Government is committed to lifting skills across the building and construction sector and I fully support the Plumbers, Gasfitters and Drainlayers Board’s efforts to ensure trades people stay up-to-date.

Continuing professional development is considered best practice across not only the building and construction sector but many other sectors of the economy. For example, lawyers, doctors, accountants and public officials.

It is not intended to be onerous. It should be of some benefit to you as practitioners, and it should not impose undue cost.

With this in mind I have asked the Board to conduct a review of the training requirements which are condition of your annual practice licenses as a matter of urgency to ensure they are fit for purpose and serve your  - and the publics - best interests.

Plumbers, Gasfitters and Drainlayers Board

When I spoke at your conference last year, we were awaiting the findings of the Office of the Auditor-General’s report into the Board’s governance of the sector.

The report identified some significant issues with how the Plumbers, Gasfitters and Drainlayers Board had operated in the past.

Addressing the underlying themes expressed by the Auditor-General; rebuilding trust, building organisational capability and capacity and ensuring all Board led initiatives are efficient, effective and lawful is critical to the Board’s and the trades success.

As the Minister responsible for the Board, I can assure you that the issues raised in the Auditor General’s report have been taken seriously.

Since we last met, the Board has taken significant steps to address many of the specific recommendations made in the report. It has:

• Improved its consultation process and has worked hard to improve relationships with sector organisations, including the Master Plumbers, Gasfitters and Drainlayers Association of New Zealand.
• Brought the Plumbers, Gasfitters and Drainlayers Act 2006 into force. The Act introduces new requirements that are aimed at improving the transparency of the Board’s activities and decision making processes.  The Board now has a clear understanding of the legislation and how it can be applied.
• Put renewed emphasis on addressing the failure rate for examinations.  I understand the recent examinations at the end of 2010 have yielded significantly improved pass rates.
• Commenced some work on the gas certification and audit system to ensure gas certificates are not misused following the incidence of a gasfitter fraudulently using gas certificates which resulted in consumers being placed at risk and also did no favours for the reputation of the industry.
• We’ve also made some changes to the Board’s membership to strengthen the Board’s strategic capability.

While these steps will go a long way to setting a foundation that will enable the Board to address the issues in the Auditor-General’s report there is still a lot of work to be done. 

The Board now has an output agreement in place with me.  I have made my expectations of the Board very clear.  I expect to see:

• Improved communication – whereby practitioners are consulted appropriately, feedback is taken onboard and decisions are communicated in an open, timely and transparent manner.
• Improved relationships with sector organisations – while the Board has already taken steps to build relationships there is still work to be done.
• A more risk-based approach to regulation as apposed to a one-size fits all approach
• Value for money – you get value for money out of your disciplinary levy and licensing fees.  I have asked the Board to review and re-set its fee structure to provide greater transparency about how this money is spent.

We all want the sector to be governed by a regulatory regime that is open, accountable, reasonable and fair and I am confident that, with your support, the Board will address - and move on from - its past experiences.

Occupational regulatory review

Before I conclude, I want to briefly update you on the occupational regulatory review.

When I met with you last year, I discussed the government’s intention to address the long-tem issues surrounding occupational regulation in the building and construction sector.

With six separate statutes regulating a number of occupations, plus six separate Boards and administrative arrangements this review is necessary to ensure standards are being set and maintained, complaints and disciplinary functions are well-exercised, and that we are all getting value for money.

Due to other priorities such as progressing solutions to weathertightness issues, the Building Act review and unforeseen events such as the Canterbury earthquakes we have not yet had an opportunity to turn our attention to this work.  However, we recognise it needs to be done and as soon as resources become available we will get stuck in.

Conclusion

Let me close by reiterating that there are some big challenges ahead. Change is needed across the entire building and construction sector to:

• ensure practitioners keep up-to-date
• improve quality
• reduce the amount of red tape
• boost productivity.

We need a more efficient and productive sector that stands behind the quality of its work. This means, plumbers, gasfitters and drainlayers - like builders – will need to step up, be accountable, and take responsibility.

It also means that those that govern the sector will need to step up, be accountable, and take responsibility.

The changes I’m talking about won’t happen overnight but I am confident that we are on the right path.  

Thank you for your time. I hope you enjoy the presentations lined up for you today. I would be delighted to hear back from you now and answer any questions you may have.