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DBH to be merged into new Ministry of Business, Innovation and Employment

Property investors are surprised and concerned about the implications of the Department of Building and Housing being merged with the ministries of Labour, Economic Development and Science and Innovation.

Thursday, March 15th 2012, 12:00AM 8 Comments

by The Landlord

Prime Minister John Key announced today that a new Ministry of Business, Innovation and Employment will be created.

Cabinet had agreed in principle to establish the new Ministry, which will absorb the functions of the Ministry of Economic Development, the Department of Labour, the Ministry of Science and Innovation, and the Department of Building and Housing.

Independent Property Managers Association president Martin Evans said he was very surprised to hear the Department of Building and Housing could be merged.

"This is the Government Department that landlords rely on and they set down the rules for renting. Over the years we have regarded them as the best Government Department they have had such good customer service."

The Department had in the past consulted fully with its stakeholders, landlords, tenants and social advocates. He had not been consulted about the merger and did not think a month was long enough to consult with interested parties.

The intention is for the Ministry of Business, Innovation and Employment to come into effect on 1 July this year, with the current departments forming the initial functional business units of the new Ministry.

This is subject to due diligence being completed for a report back to Cabinet in April.

Department of Building and Housing service delivery deputy chief executive Maria Robertson had not been consulted about the merger either.

"It is not our decision. We have not made the decision. The Prime Minister made the decision and his office left us know about it a day and a half ago," she said.

She did not know what the merger would mean for the future services the department would offer.

At the New Zealand Property Investors Association conference in Queenstown last year Robertson spoke about her heavy work load, limited funds and a need to work together with property investors.

When asked how the merger will affect the already large work load the department had she said  "our intention is to continue our excellent service. I have no reason to believe the department will not continue to offer an excellent service.

"We will have a job to do and that is what we are going to get on and do. It was his (the Prime Minister's) decision and like you we are working through exactly what that means. Our focus right now is to continue to provide a really high service," Robertson said.

Evans said it was essential services were kept especially in Christchurch where there were a lot of people needing social housing.

"They (the Department of Building and Housing) are the ones that used to collectively get us together to plan strategies for how we can handle these people. Without Government intervention we will feel like a lone voice that has not been heard. I hope they still keep up their customer relations that they have done," Evans said.

"At the end of the day we all (the Department of Building and Housing and landlords) have the same customers, the tenants, we want to keep them in their properties."

Steven Joyce will control the new ministry. He is already the Minister of Economic Development and Ministry of Science and Innovation.

Joyce said in a statement, if we wanted more and better jobs for New Zealanders we needed to encourage more businesses to be based here.

"That means making it easier for businesses and companies to access innovative ideas, markets, capital, skilled workers, resources, and the supporting public infrastructure," he said.

"The new Ministry will reduce the complexity involved in working between agencies, and between agencies and business. At present when businesses engage with Government they work with multiple Government agencies, which takes away valuable time, as well as incurring unnecessary duplication of effort. This is time that could better be served in allowing companies to work on their businesses rather than on their government relations.

"A more efficient and effective Ministry focused on lifting overall productivity and supporting the growth of competitive businesses is a crucial element in creating more jobs and higher wages, and boosting our standard of living," Joyce said.

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Comments from our readers

On 15 March 2012 at 4:36 pm MAM said:
Maybe they should call it the Super Mystery. It is mystifying how building and housing fits within Business, Innovation or Employment.
Good luck to all you landlords and tenants out there.
DBH has done a great job with limited resources and was already stretched dealing with its sensitive and difficult portfolio.
On 15 March 2012 at 4:44 pm clare said:
yet another example of this government's slash and burn agenda. who voted for these people, just on the strength of a smile? when will we ever learn?
On 15 March 2012 at 4:57 pm denis healey said:
More like making a big black hole rather than super 'mystery'. Don't worry, it will be broken down into separate depts again within 6 years.
On 15 March 2012 at 6:54 pm Brian said:
As a landlord the most disconcerting thing so far for me is the lack of real information about what all this really means to the services provided by the DBH. A recent tribunal hearing took 6 weeks from application and then a continuance was necessary. The lack of real information re the new ministry suggests these processes are only going to get worse!
On 15 March 2012 at 7:11 pm Martin Zonneveld said:
Yeah it's all good. We now need to reduce the amount of politicians. After all there are only about 4 million of us to look after. We are smaller than most big cities. Maybe all we need is mayor of NZ. Keep it simple!
On 15 March 2012 at 8:09 pm Stim said:
The government is struggling push through what it thinks is good reform of planning (particularly in Auckland) in the face of lots of opposition to an over simplistic model of solving everything through greenfield land release. While that needs to happen, it's not the answer alone. Unfortunately this just looks like bringing in the most aggressive minister in to attack the situation. I don't think this bodes well for investors, communities or development businesses. I see rhetoric over sense coming here, as we have seen from Joyce when he has been in charge or transport.
On 16 March 2012 at 2:38 pm Rusty said:
I don't know how the DBH fits in the super ministry but good riddance to the DBH as far as I'm concerned. I disagree with Martin Evans comments that they're one of the best departments.
On 19 March 2012 at 10:59 am Bert and Julie said:
Sorry Martin and NZPIF. DBH is an awful Government body! Recently they took forever (>2 months) to get my South Auckland tenants out. Last year on another tenancy they lost the forms and started the time count again - 5 weeks for a "SWIFT phone mediation". Give me a break.

The DBH need a rocket and if this new ministry gives them the reason for change and slashes the under-performing staff and brings in people that actually know how to resolve tenancy disputes quickly then we are all in favour.
Commenting is closed

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
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Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

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