Bradford Sue: Real Estate Agents Bill — Second Reading In Committee Third Reading 
Bradford Sue: Real Estate Agents Bill — Second Reading In Committee Third Reading 
[Volume:649;Page:18367] 
SUE BRADFORD (Green) 
: 
 The Green Party will be supporting the Real Estate Agents Bill and associated Government amendments through all final stages in the House today. We were aware from the start of the contentious nature of aspects of this new law. How could we avoid it given the powerful and effective voices of real estate agents and auctioneers and the somewhat combative statements of Minister Clayton Cosgrove in the earlier stages of the process? 
The consideration of the bill by the Justice and Electoral Committee was intense but informative and I would like to acknowledge all of the more than 1300 submitters for the effort they put into participating in this particular democratic process. I would like especially to thank Barfoot and Thompson in Auckland for showing several of us on the committee around its operations so that we could get a better feel for aspects of the sales human resources accounting and auctioning side of the business. The complexities of those backroom functions are not normally visible to a vendor or a purchaser—my only contact with the industry in the past being in that role albeit on a number of occasions. 
One of the key achievements of this bill will be the establishment of a new Real Estate Agents Authority which will have the power among other things to investigate complaints from people about things like real or perceived conflicts of interest on the part of agents commissions and fees and generally shoddy or inadequate practices. The new authority will investigate complaints on behalf of the consumer for free and is an independent body with the ability to set penalties and award compensation. It will also be responsible for administering the licensing system for real estate agents setting standards establishing fees and levies and providing information for consumers. The Greens believe that having all those functions carried out by a statutory organisation independent of the Real Estate Institute unlike the existing situation will inspire confidence in all those for whom buying or selling a house is often the biggest financial decision of their lives. 
This bill also incorporates the establishment of a separate Real Estate Agents Disciplinary Tribunal whose functions will be to deal with matters referred to it by the complaints assessment committee—a committee appointed in turn by the new Real Estate Agents Authority. During the course of the Justice and Electoral Committee consideration we heard many concerns from industry submitters about their fears that the representation on those new bodies would not include people with a long track record of working in the sector—people who would hold the confidence of agents and their professional association. This concern was shared by the Greens and by other parties and we have been pleased to see improvements to the bill in this regard. During the select committee process we supported changes that mean that firstly the Minister will be required to appoint at least two members of the Real Estate Agents Authority who are licensees or former licensees and secondly in relation to the disciplinary tribunal at least one member must be a licensee. In addition there is a Government Supplementary Order Paper before the House that will further amend the bill so that the Minister now is required to consult the Real Estate Institute when making the first appointment of licensees and former licensees to the authority and the disciplinary tribunal. The Green Party has backed all these changes because we think it critical that the expertise of real estate agents and their own professional body should be brought to bear if these reforms are to have credibility with the industry and so that the reforms will find support among those whose standards and quality of work we are expecting to improve as a result of these measures. 
Another area of much contention during consideration of this bill was the proposal to review the employment status of sales people after 5 years. The Greens had supported this proposal because we have ongoing concerns about the exploitation and low pay of some vulnerable workers and contractors within the industry. However a Government amendment will remove the relevant 5-year review clause. Although we will be supporting the change we also hope that anyone working in the industry who has concerns over his or her employment or contracting conditions or lack of them will not hesitate to avail himself or herself of the remedies available now through existing employment law. At a time when the industry is seeing a major shake-out as a result of the downturn in the housing market it is more important than ever that the employees and contractors who remain are treated well and are able to stand up for themselves with my concern here being especially for some back-office people as well as some agents who run the risk of carrying the can financially for a sector that is going through difficult times. 
The whole area of auctioneering was another difficult issue for the select committee. As the auctioneers who made submissions to us quickly found out this is not an aspect of the housing market with which I and I think some other MPs on the committee had any familiarity whatsoever. I was struggling to grasp what the purpose of the original changes to the auction system were in relation to the rest of the bill especially after receiving repeated assurances that after some admittedly shonky episodes in the past there are now enough safeguards in place in the auction process to protect the ethics and the interests of all involved. Although I think perhaps it might have been a good idea to find a way to enshrine or append an auctioneer’s code of ethics to the legislation in the meanwhile the Greens support the proposed amendment which will leave things with the status quo in regard to auctions. 
One other matter of major dispute during our dealing with this bill was the question of whether property managers could or should be included in the legislation. I was convinced by numerous submitters that it would have been better if we could incorporate property managers within the legislation—for example through regulation of activities such as leasing letting collection of rentals and so on—as this area of work is also a key part of the real estate sector and in fact often forms part of the operation of real estate firms themselves as well as other firms. However in the end there was clear advice to the committee that to try to amend the bill to include property managers was outside its scope. The Green Party therefore welcomes the commitment the Government has made to review with some urgency the regulation of property management in a way that will be coordinated to be simultaneous with the commencement of this bill. The fact that the commencement of most of the provisions of the bill will be extended out from 1 year to 14 months should also mean that this review and resulting legislation will have time to happen effectively and well in full consultation with all concerned. I trust that whatever form our next Government takes that commitment about property managers will be actioned. 
The Real Estate Agents Bill got off to a really rocky start and I think it was unfortunate that such important legislation for consumers and for all stakeholders in the real estate area became more of a political battlefield than was really necessary. I believe that the reforms contained in this legislation are necessary and well worked through and that all the MPs on the committee listened hard to the many concerns expressed to us including issues beyond those I have had time to deal with today. I was particularly pleased after earlier episodes to see a media release from the Real Estate Institute on 30 July this year that welcomed the new bill with amendments and stated: “We are committed to working with the legislators to ensure that the final result is the best consumer legislation possible.” I think that is a commendable attitude on the part of the institute and hope it is one that will be shared by all parties in this House and by all involved in the industry. 
We have seen and will undoubtedly continue to see examples of rip-offs cons shabby treatment of customers and exploitation of workers in the industry. However it will be in the best interests of everyone if the reforms enacted here are carried out with goodwill and commitment on all sides so that we see a steady improvement in quality accountability and protection for all concerned. As I said on an earlier occasion this bill is about justice not only being done but being seen to be done. 
I thank everyone who has had some role in getting the bill to this stage including our committee chair Lynne Pillay; Minister Clayton Cosgrove; and all the submitters. But I would also like to say a special thankyou to the hard-working Government officials and select committee staff for all their work because they really had quite a hard time of it I have to say during the select committee process. I believe they did a fantastic job on very difficult and complex legislation and I thank them. 
I commend the bill to the House.