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Annual Report 2007/08

Chief Executive's overview

Part 1:

Part 2: Performance information

Part 3: Residential Tenancies Trust account

Part 4: Additional information

alternative format

Download the Annual Report 2007/08 [PDF 891 KB, 134 pages]

Sector and regulatory policy

This output class involves providing policy advice in relation to the building and housing sector in New Zealand. It includes providing policy advice on the Government's regulation of the building and housing sector (including the regulation of trades and professions operating in the sector), monitoring the building and housing sector (including the effectiveness of statutory boards), and providing the regulatory framework for the building industry.

Output: Sector and Regulatory Policy Advice:

Provide policy advice on building and housing sector issues in New Zealand, including the Government's regulation of the building and housing sector and the provision of the regulatory framework for the building industry.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
Measure achieved	Provide policy and regulatory advice on occupational licensing	Measure achieved	Achieved Drafting instructions were provided to the Parliamentary Counsel Office for the Licensed Building Practitioner Register and complaints regulations, and a Request For Proposals for input on the definition of ‘restricted building work' in the Building Act 2004 was issued.
Measure achieved	Provide policy and regulatory advice on Residential Tenancies Act 1986, Unit Titles Act 1972, Building Act 2004	Measure achieved	Achieved Residential Tenancies Act 1986 The Residential Tenancies Amendment Bill was introduced on 29 May 2008. Unit Titles Act 1972 The Unit Titles Amendment Bill was introduced on 29 May 2008. Building Act 2004 The Building Amendment Bill was enacted on 15 March 2008. Articles have been published and the website updated to advise the sector on its contents.
Measure achieved	Provide policy and regulatory advice on the Retirement Villages Act 2003, Registered Architects Act 2005, Construction Contracts Act 2002, Weathertight Homes Resolution Services Act 2006, Fencing of Swimming Pools Act 1987, Engineering Associates Act 1961, and advice on the minimum requirements for buildings	Measure achieved	Achieved Policy and regulatory advice has been provided on the following. Retirement Villages Act 2003 A Code of Practice specifying the minimum requirements in occupation right agreements was declared invalid in the Wellington High Court on 19 December 2007. The Department advised the Minister for Building and Construction on the options to reinstate the Code of Practice and a proposed new Code of Practice went to consultation on 16 June 2008. This work will be completed in 2008/09. Construction Contracts Act 2002 Two requests for approval as Authorised Nominating Authorities were approved by the Minister under the Construction Contracts Act. Weathertight Homes Resolution Services Act 2006 An amendment to the Act secured Royal Assent in August 2007. Advice was provided on proposals for changes from local government. Fencing of Swimming Pools Act 1987The review of the Fencing of Swimming Pools Act 1987 has commenced and submissions for the first part of the review closed on 30 June2008. Plumbers, Gasfitters, and Drainlayers Act 2006 Responsibility for administering the legislation was successfully transferred to the Department from the Ministry of Health on 31 January 2008. Minimum requirements for buildings Work was deferred as resources were required for higher priority work.
	Quality and timeliness
Measure achieved	Meet our quality standards for policy advice	Measure achieved	Achieved All reports and advice have undergone peer review, and have been assessed against our quality standards.

Output: Sector, Industry and Market Monitoring: Monitor trends and developments in the building and housing sector.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Pilot test a framework for monitoring and evaluating the effectiveness and performance of occupational licensing regimes in the building and housing sector	Measure achieved	Not achieved An initial framework for monitoring the effectiveness of occupational licensing arrangements has been developed. Further development and implementation of the framework will occur in 2008/09.
New measure for 2007/08	Provide policy advice on major and emerging issues, including housing supply, homeownership and the structure of the rental housing market	Measure achieved	Achieved Advice has been provided on major and emerging issues including institutional investment and tenure security.
New measure for 2007/08	Provide policy advice on sector-wide research	Measure achieved	Achieved Briefings have been provided to the Minister as required as follows. The Minister has been briefed on CHRANZ reports. Research is under way on the size and needs of the intermediate housing market, which will be reported back by November 2008.
	Quality and timeliness
Measure achieved	Meet our quality standards for policy advice	Measure achieved	Achieved All reports and advice have undergone peer review, and have been assessed against our quality standards.

Output: Statutory Board Responsibilities: Advice on the efficient and effective regulation of trades and professions operating within the building and housing sector, including monitoring the effectiveness of statutory boards.

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
New measure for 2007/08	Board membership maintained at agreed levels	Measure achieved	Achieved
Measure revised for 2007/08	Board member appointments and re-appointments	Number of vacancies that arise	Achieved The following have been completed. Electrical Workers Registration Board - three new members appointed, one reappointed Building Practitioners Board - four members reappointed New Zealand Registered Architects Board - four members reappointed Housing New Zealand Corporation - three members reappointed Chartered Professional Engineers Council - six new members' appointments in progress
New measure for 2007/08	Annual report on each Board's performance	Measure achieved	Achieved Reports on the performance of six Boards has been provided. Building Practitioners Board Chartered Professional Engineers Council Electrical Workers Registration Board Engineering Associates Registration Board Housing New Zealand Corporation Board New Zealand Registered Architects Board
New measure for 2007/08	Interim or by-exception reports on performance issues	Measure achieved	Achieved All interim or by-exception reports were provided to the Minister within the required timeframes.
New measure for 2007/08	Advice on output agreements for each Board	Measure achieved	Not achieved Resourcing constraints did not allow for a review of output agreements to be undertaken. Existing agreements will be reviewed in 2008/09.
	Quality
Measure achieved	Appointments comply with Cabinet Office guidelines	Measure achieved	Achieved All appointments complied with Cabinet Office guidelines.
Measure achieved	Board performance reports against output agreements	Measure achieved	Not achieved Resourcing constraints did not allow for a review of output agreements to be undertaken. Existing agreements will be reviewed in 2008/09.
	Timeliness
Measure revised for 2007/08	Appointments (or re-appointments) completed	By agreed date	Achieved Appointments completed by agreed date.
Measure revised for 2007/08	Annual reports on performance	Within 1 month of receipt of report	Achieved All annual reports were reviewed and advice provided to the Minister within the required timeframe.

Output: Ministerial Services

This includes:

responses to parliamentary questions
ministerials
Official Information Act and Privacy Act requests

Actual 2006/07	Measures	Standard 2007/08	Performance to 30 June 2008
	Quantity
114¹¹	Forecast number of responses to parliamentary questions	75-80	Achieved 112 responses to parliamentary questions were provided, including four oral questions.
494	Forecast number of responses to ministerial correspondence	340-380	Achieved 461 responses to ministerial correspondence were drafted.
122¹²	Forecast number of Official Information Act and Privacy Act requests	110-120	Achieved 245 Official Information Act requests were received. One Privacy Act request was received.
	Quality
Measure achieved	Ministerial satisfaction assessed through a structured discussion with the Minister three times per year. This will include performance against quality standards agreed with the Minister	Measure achieved	Achieved The Department had regular meetings with the Minister and feedback was provided.
86%	Responses to Official Information and Privacy Act requests comply with the legislation	100%	Not achieved 79% of responses to Official Information Act and Privacy Act requests complied with legislation.
	Timeliness
99%	Responses to parliamentary questions provided within the deadlines agreed with the Minister	100%	Achieved 100% of responses to parliamentary questions were provided within agreed deadlines.
72%	Responses to ministerial correspondence provided within the deadlines agreed with the Minister	100%	Not achieved 85% of responses to ministerial correspondence were provided within agreed deadlines.
86%	Responses to Official Information and Privacy Act requests provided within statutory deadlines	100%	Not achieved 79% of responses to Official Information Act and Privacy Act requests were provided within the statutory deadlines.

Commentary on performance

Sector and Regulatory Policy Branch reprioritised the 2007/08 work programme in consultation with the Minister in order to resource the work on streamlining the building design and consent processes and the housing affordability work programme.

Financial Performance

2007 Actual $000		2008 Actual $000	2008 Main Estimates $000	2008 Supplementary Estimates $000
5,825	Revenue - Crown	4,082	4,907	5,007
44	Revenue - Departmental	137	62	137
-	Revenue - Other	-	-	-
5,869	Total Revenue	4,219	4,969	5,144
5,402	Total Expenses	4,095	4,969	5,144
467	Net surplus/(deficit)	124	-	-

11 The target was revised in 2007/08. The target for 2006/07 was 58-62.

12 The target was revised in 2007/08. The target for 2006/07 was 70-75