Roy Eric: Real Estate Agents Bill — Second Reading In Committee Third Reading 
Roy Eric: Real Estate Agents Bill — Second Reading In Committee Third Reading 
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ERIC ROY (National—Invercargill) 
: 
 I was not going to take a call on this part but I am so intrigued when I look at this bill because I well remember seeing the Minister in the chair the Hon Clayton Cosgrove on TV using some very extravagant language to describe real estate agents: “rip-off merchants” “rascals” “land sharks”—all of those sorts of words— 
Hon David Carter 
: Cowboys. 
ERIC ROY 
: —cowboys—and he was going to protect the consumer. I will talk a wee bit about that in a minute. 
When one looks at this legislation one asks what the purpose of Part 1 actually is. The purpose rather intrigues me because we had this very very strong rhetoric about how consumers were being ripped off and were at risk and when I look at the commentary I see that the purpose of the Act is to “reinforce the message that the bill sends to the industry”. So here we have this great mischief occurring in the transactions of the nation and this bill will reinforce the message. I feel that if there are such evil procedures taking place in the transactions involving real estate around the country there certainly needs to be quite a bit more than a message. 
I think that this bill is spawned out of envy to some degree. Some real estate agents have actually been successful. Therefore if they have been successful they must have been conducting evil business. That is where it comes from. 
Hon Clayton Cosgrove 
: That’s silly. 
ERIC ROY 
: It is not silly. The Minister is now interested. If one looks at the expenditure of an individual in a lifetime and at the size of the investments people make one sees that No. 1 is real estate. There is absolutely no doubt about that. No. 2 is a motor car. Who are the most hated people apart from politicians? Car salesmen! We have this focus on car salesmen so we have to lift our game and hate those successful real estate agents. The third biggest investment that people make in their lives is carpet which is rather fascinating is it not? So the next thing we will see is that carpet salesmen are ripping off the nation. That is no basis to legislate on. 
The consumer is at risk—well the consumer is frequently at risk in a whole range of ways. Looking after the consumer is a high aspiration but to a degree we have to set out a course—a road map—so that people who are making these real estate investments have a course that they can follow. There is a requirement that real estate agents be licensed and are of good character. Then one writes a contract. I have bought land on a handshake without an agent. Would it not be great if we could do that? 
Hon Clayton Cosgrove 
: You did? 
ERIC ROY 
: The member understands that there are no problems with the great majority of transactions that take place. Then one gets a lawyer. The lawyer looks at the land information memorandum report and the memorials to see whether there is any mischief. There is a structured way in which those transactions take place. 
Hon Clayton Cosgrove 
: So there’s no problem at all? 
ERIC ROY 
: Well here is the point you see. The Minister said “So there’s not a problem?”. I want the Minister to stand up and say “This is the mischief that we have uncovered.” I want the Minister to take a call and say “This is what was happening.” Then we might have something to debate other than a bill whose purpose is to reinforce a message. 
I think we have had the select committee beavering away over submissions. I will have some things to say because I became intrigued by an element in Part 5 so I am looking forward to getting the Minister’s response on that. But essentially we really need to have a clearer amplification of what the purpose is in this bill. What is the mischief? What have these evil real estate agents been doing to the nation of New Zealand that this bill will protect us from? If I am to know what it is then I need to have some clear articulation of what the mischief is so that we can measure whether this bill addresses those things. I look forward to the Minister in the chair the Hon Clayton Cosgrove telling us what those evils are. 
Hon Clayton Cosgrove 
: Hold on help is on the way. 
ERIC ROY 
: Right well let us hear about them.