New Zealand Registered Architects’ Assessors’ Dinner

 

Speech notes

 

Hon Maurice Williamson

 

Minister for Building and Construction

 

New Zealand Registered Architects' Assessors' Dinner

 

Heritage Hotel, Auckland

 

Thursday, 15 October 2009

 

 

 

Acknowledgements

Ron Pynenburg -	Chairperson, New Zealand Registered Architects'    Board
Paul Jackman -	Chief Executive,  New Zealand Registered Architects' Board

 

Introduction

 

Thank you for inviting me to speak with you this evening.  It's a pleasure to have this opportunity to talk about some of the issues that are important both to your profession and to Government.

 

Firstly, I acknowledge the work of your own organisation, with your continued, professional involvement in ensuring the ongoing quality of New Zealand's architects.  Not only do you set the standards, but you test all architects' competencies against them - and this is an excellent performance-based model within the industry.

 

As assessors you play a pivotal role in protecting New Zealand's housing consumers, through determining who is competent to practise as a ‘registered architect'.  In undertaking this function, you demonstrate a high level of personal commitment to the sector, by conducting rigorous testing of individuals who are applying for registration.  For a merely nominal fee, you provide your expertise in order to contribute to the credibility and competence of your profession.  This level of service to your colleagues, and to the wider industry, is appreciated.

 

Lifting the performance of the overall building industry is likewise an important goal of this Government.  The provision of education and training, including through professional organisations like yours, is vital to improving sector capability - and thereby reducing the likelihood of significant issues emerging downstream.

 

My colleagues and I are currently grappling with the legacy and extent of New Zealand's leaky homes, a dire situation which marred the reputation of several sectors in the building and construction industry, and affiliated agencies - and which has severely impacted thousands of home owners. 

 

Some of the Government's initiatives I will outline tonight are designed to help avoid the recurrence of this kind of event - and your input to these is welcome.

 

 

Government's Vision

Ron has asked me to talk about the Government's vision and policy in relation to the design and building sector.  We want a building and housing market that delivers good quality homes and buildings for New Zealanders and also contributes to strong communities and a prosperous economy.

I know that you will have questions about the Government's programme of work in the building and construction industry, and how we plan to reduce the impact of the remainder of this recession. 

 

The key themes in this speech are therefore:

• the sector's contribution to economic recovery - along with the importance of training and education in lifting performance;
• learning from the lessons of the past: what I'm seeking to achieve through the review of the Building Act and the launch of the Licensed Building Practitioners' scheme; and
• promoting simple and affordable homes to New Zealanders: new initiatives underway this financial year.

 

As I talk about each of these priorities, please think about how you could contribute to them, both personally and as an organisation.

 

 

Importance of the building sector to the New Zealand economy

 

Building and construction is important to the New Zealand economy.  The industry contributes more than 5% of GDP, and employs 7.5% of New Zealand's workforce.  The total capital expenditure on building and construction is more than $20 billion per annum.   

 

Given that the building industry is critical to the health of the economy as a whole, this Government is committed to targeting investment to support it.

 

 

Infrastructure investment

 

Budget 2009 was a key milestone on New Zealand's way to economic recovery.   Millions of dollars were earmarked for investment in roads, schools and housing.  This money will not only keep the economy moving, but will help build a firm foundation for future investment.

 

The Government's Budget increased the capital spending allowance from $900 million to $1.45 billion - the first part of a planned $7.5 billion boost for infrastructure over the next five years.  

 

Capital spending allowances will remain at $1.45 billion for four years, before rising to $1.65 billion in 2013/14 financial year.

 

As well as making these resources available, however, a plan needs to be established, determining how investment will be spent and where.

 

Planning key investment projects will help keep the economy on the path to recovery and should alleviate the worst effects of the business cycle.  The Government cannot do this alone, however; Government and industry must work in partnership to maximise opportunities and plan for change.

 

 

Building and Construction forum

 

Stimulating planning investment and expenditure was a major theme of a building and construction forum I hosted in Auckland in July 2009.  Some of you present tonight may have attended the event.

 

More than 80 industry leaders, as well as elected representatives and officials for central and local Government, joined me and the associate Minister for Infrastructure, Honourable Stephen Joyce, to consider a range of issues facing the building and construction industry.

 

Discussion focussed on the findings of reports produced by two taskforces:

 

• The report of the Urban Taskforce looked at how a strategy and action plan could better plan the growth of our cities; and
• A second report, produced by the Productivity Taskforce, put forward several recommendations aimed at developing a sector-wide skills strategy and improving the way in which major construction projects are procured.

 

The ultimate aim of this work is to drive innovation and productivity growth. One of the benefits of greater productivity is lower prices for consumers.

 

Your profession may be keen to participate in both of these initiatives.

 

Education and training

 

Raising and retaining skills are integral to any future plan to address this productivity gap, and to ensure we have a solid building and construction industry after the economic situation improves.

 

I have already discussed some of the issues with my colleague, the Education Minister Anne Tolley, who is keen to support momentum of the Productivity Taskforce through developing a skills strategy supported by industry.

 

These issues will be addressed in the Government's response to the Taskforce's findings.

 

 

Recent building and construction announcements

 

A few weeks ago I made two important decisions - one on the announcing a review of the Building Act and the other on the licensing of building practitioners.

 

I'm delighted to say that the initiatives I announced were widely welcomed by consumers and the industry alike.

 

They represent Government's commitment to leading a ‘step change' in the way building work is done in this country, and I believe they will result in better buildings and enhanced consumer protection.

 

 

 

 

 

 

Building Act review

 

We have a stifling consent system that adds cost and time to many building processes, which can ultimately end up hurting consumers and frustrating builders.

 

This needs to change.

 

In particular, concerns have been expressed about implementation of the Building Act at Local Government, costs and complexity of the building consent process, and the allocation of risk between the parties in the building system.

 

The review will identify reforms that will reduce costs, but not the quality of the building control system. 

 

The review is being carried out by the Department of Building and Housing, and a reference group has been set up so we can canvass industry and consumer representatives, and benefit from a wider range of views and expertise.

 

The review will consider streamlining building consent requirements, improving the allocation of risk, providing more information about consumer rights, creating greater incentives for professional performance, and determining the use of smart technology to improve the consenting process.

 

Subject to Cabinet approval, sector-wide consultation will be carried out next year on more detailed options for regulatory reform, with a view to legislative change by the end of 2010.

 

 

 

 

Licensed Building Practitioners' Scheme

 

I'd also like to outline the Licensed Building Practitioners' scheme.  

 

From 1 March 2012, only a licensed building practitioner will be able to carry out restricted building work.   Restricted building work is critical to the integrity of a building and should only be done by a licensed person.   Restricted building work on stand-alone houses and small- to medium-size apartments will apply to the design and construction of:

 

• Foundations and framing, so that the building can withstand vertical and horizontal loads; and
• Roofing and cladding, so that the building is weathertight.

 

Restricted building work will also apply to the design of active fire-safety systems in small- to medium-size apartments.  Clearly, this work relates to building safety, weathertightness and durability and it must not be compromised.

 

Given the rigour of architects' training and registration in New Zealand, registered architects have been automatically included within the ‘Design 3 licensing class' and so you and your colleagues will not need to apply to be licensed.

 

 

Starter Homes

 

The Government has embarked on a range of initiatives aimed at improving the supply of affordable houses, and at encouraging designers and house buyers to choose houses of good quality.   The initiatives include the Starter Home Design Competition completed in March, and the development of the Simple House Compliance Document, to be launched later this year.

 

The Starter Home Design Competition aimed to encourage architects and designers to come up with innovative, affordable designs for a simple starter home, based on the Simple House Compliance Document.  I'd like to thank all the architects who participated in this competition.

 

The results were stunning.  They showed just what could be achieved with limited resources.   Some of the good things to come out of this competition are that it:

• Demonstrated to the industry and to Government that affordable, well designed and attractive houses are possible.
• Demonstrated that high quality, but inexpensive, design is achievable using the Simple House Compliance Document.
• Encouraged a high degree of participation by the design professionals (with 140 entries being received).
• Confirmed professionals' recognition of, and interest in, the need for good quality and affordable houses.
• Generated ideas that are subsequently being used to inform and improve guidelines for simple housing.

 

The Department of Building and Housing has planned a communications strategy to ensure that the advantages of the Simple House Compliance Document, and the imaginative design possibilities demonstrated by the competition, are widely understood by the industry and the public.  This strategy will include open home events, media activity, web-based information, and master classes for architects and designers run by the chair of the judging panel, Gordon Moller.

 

As a companion to the Simple House Compliance Document, the Department proposes to work with the profession to develop guidelines and a portfolio of designs for simple houses, aimed at prospective house owners.

 

Department staff will are similarly working towards guidelines and recommendations for medium-density housing as part of its response to the recommendations of the Urban Taskforce.  And they will continue to proceed with the preparation of compliance documents for housing generally. 

 

All of these initiatives are part of the Government's drive to remove regulatory barriers that can hinder growth.  New Zealanders rightly demand quality homes when they set about building their dreams, and their passage to achieving these should be smooth and untroubled.

 

The Starter Home Competition designs showed that a range of functional and practical living spaces can be incorporated into an innovative design that meets people's needs and provides a high-quality living environment.

 

As your profession appreciates well, sound building practice and affordability don't have to be boring or unappealing.

 

Modest homes can be exciting and can capture our imagination.  First-time home buyers can build a new home, rather than buy an existing house, if they want to.  And in the case of simple homes, less really can mean more.

 

 

Closing remarks

 

I have described some of the measures the Government is taking to lift the building industry out of the recession, boost skills and productivity, and set it on the course for sustainable long-term growth.

 

Together we can make a real difference to lifting the performance of a sector which touches the lives of every New Zealander.

 

If we get it right, more New Zealanders can live and work in quality homes and buildings.

 

Thank you once again for the invitation to speak to you tonight, and for your personal and organisational commitment to creating competent architects and high-quality places to live and work.