Turia Tariana: Real Estate Agents Bill — Second Reading In Committee Third Reading 
Turia Tariana: Real Estate Agents Bill — Second Reading In Committee Third Reading 
[Volume:649;Page:18369] 
Hon TARIANA TURIA (Co-Leader—Maori Party) 
: 
 Tena koe Mr Assistant Speaker. Tena tatou katoa. It could not be a better time to be introducing a new regulatory framework for the real estate industry to help it shape up to the expectations of the consumer client base that it services. Statistics from the Real Estate Institute of New Zealand revealed a dramatic reduction in residential sale volume over the year end. Sales registered in July 2008 were down by a massive 33 percent. It would be simplistic to suggest that the Real Estate Agents Bill will single-handedly reverse a perilous economic downturn but then again one never knows what may turn the tide in encouraging homeowners to take a gamble on the current market. What we do know is that concerns with issues such as misleading representation poor contractual advice and mishandled funds have been making more and more New Zealanders risk-averse to the real-life monopoly board. 
Such was the level of concern in fact that some 1328 submissions were received from the public. This in itself should warrant this bill being accorded particular attention to facilitate the smooth passage of law in the most efficient time possible. However when we think about the foreshore and seabed legislation which received 3946 written submissions and 234 oral presentations we find that that process was not given serious and responsible attention so let us hope that the net is cast differently for this Real Estate Agents Bill. 
The impact of any legislative changes to promote public confidence in the performance of real estate agency work must not be underestimated. An analysis of the number of New Zealand computers visiting real estate websites found an average of 325000 sessions per week. As of July 2008 there were 60150 residential properties for sale on the market being put up for offer by approximately 1500 real estate agents and over 20000 sales people so it is a huge industry and it requires that we take seriously the importance of consumer protection in real estate transactions. This bill is about protecting and promoting the interests of consumers in these transactions. That is a worthy ideal and one that we hope will be taken up as a priority by all parties in this House and it is beginning to look that way. 
There has been much said about the need to regulate agents managers and salespeople to ensure that consumers receive a quality service from an agency that adheres to industry standards. There is no denial that an upgrade has been sorely needed. The 1976 Act for instance included as a maximum penalty that the institute could impose a fine no greater than $750. But more significantly there had already been moves afoot within the industry to upskill and improve. The Real Estate Institute had itself realised the urgent need for consumer protection and had contracted none other than consumer affairs advocate David Russell to carry out its own review of its internal code of ethics and rules of practice. 
This bill then emphasises moves already in place to enhance industry standards and to provide accountability through a disciplinary process. The changes that will be made to an operational code of conduct will ensure that any progress is independent transparent and effective. Those are all values that we as the independent voice of Maori in this Parliament are adamant must be upheld in all spheres of Government including this House. Consumer New Zealand outlined this case clearly to the Justice and Electoral Committee. It told the committee that a significant number of complaints fielded by its advisory service came from people who have had problems with real estate agents. For too long people have had to accept quite a poor service from real estate agents and operators even though I would say also that there are some very good real estate people. The legislation will level the playing field and allow consumers to take action if they have been poorly treated. 
It was pleasing to see the Real Estate Institute of New Zealand giving support to the reforms and its agreement that professionalism will be enhanced and consumers protected through lifting industry standards. It particularly supported the creation of an independent and transparent complaints and disciplinary process. A key initiative put forward by this bill is the recommendation to amend the functions of the Real Estate Agents Authority particularly ensuring that there is consultation with the sector. So we are pleased to see the call from so many of the submissions from real estate agents has been taken up and that the membership of the authority and of the Real Estate Agents Disciplinary Tribunal will be broadened to ensure that industry expertise is represented. We support also the move to ensure that agents who employ independent contractors are liable for their actions as if a contractor were an employee. That will give better protection to consumers. 
However there are a couple of areas that we believe require further work as the bill proceeds through the House. The first of these was presented by the Whitireia Community Law Centre. Its view was that consumers faced with detailed agency contracts and complex statutory rights need far more than “educational information” as provided for in the bill to assist them in understanding their rights to make a complaint. Consumer advocacy should be recognised as an important way of maintaining industry standards and setting in place processes to achieve client care. As a corollary to this the Whitireia Community Law Centre also recommended that the functions of the authority should be expanded to include funding negotiation and conciliation or mediation of consumer complaints. 
The second issue is the contentious one of property management. This is an area of special relevance to Maori. The Maori Party is of course aware that the relatively low Maori homeownership rate would suggest a relatively high Maori renting rate. We know that 56 percent of the Maori population are not in owner-occupied dwellings as opposed to 31 percent of non-Maori. In real numbers two-thirds of our population do not own their residence. The importance of having an effective oversight of the entire industry is crucial. In effect whether one is renting or owning is irrelevant. The key thing is that the process is transparent and of course that all steps have been taken to ensure that people are not exploited by unscrupulous traders or misleading representation. To this effect we will be looking with interest at any Supplementary Order Papers that may come into the House at the Committee stage which may address the issue of property management. 
We are happy to support the bill at this stage in that we support any developments that can lift standards and achieve better protection for New Zealanders in dealing with real estate agents. We join with the Green Party in commending the officials for the way in which this bill has been managed at select committee. Kia ora.