NIKKI KAYE (National—Auckland Central) : I rise to speak to the Building Amendment Bill (No 2). I will raise a couple of points. I know a number of speakers have gone through the substantive parts of the bill, but one of the reasons why I think this bill is so important for New Zealand at the moment is that housing affordability is now a major issue, particularly for young people. We have all heard the figure of $20,000 as the average cost of compliance per house.
That is a massive cost for young people who are trying to get into homeownership. I support this bill because I think it puts us on the road to ensuring that younger people are able to get into their own homes.
The other point I will make concerns the select committee process. I know that we received a number of submissions from industry bodies, private companies, Crown entities, and community advocate groups. Although we had those submitters, the changes to the bill were actually very minor. I acknowledge the work that the Minister for Building and Construction, Maurice Williamson, has put into the bill, and also Chris Auchinvole, the chairperson of the Local Government and Environment Committee. I also acknowledge Shane Jones for the work that he did to bring this bill to the House.
The other thing I will mention in terms of the benefit of this bill is that the changes should also provide greater certainty to councils when they process building consent applications that rely on national multiple-use approvals. That is very important in an electorate like Auckland Central.
It is also important in the city of Auckland, where a number of multiple-use approvals could potentially be made. We have much more on-mass housing than elsewhere, and we see that in the city of Auckland, and particularly in my electorate of Auckland Central.
I would also like to comment on some of the substantive parts of the bill. Regarding time frames for processing applications, I know the select committee recommended that a time frame of 40 working days be imposed by regulation on the Department of Building and Housing for the processing of applications for national multiple-use approvals. This acknowledges that the processing of these approvals will be a new service. The committee recommended that the regulatory time frame be reviewed within 2 years. The other purpose of this bill is to differentiate between major and minor variations to consented building work, so that minor changes can be made without going through a full process, and I believe that this will reduce costs and save time. The bill is also about project information memoranda, and about making them voluntary. I think that is a very good aspect of this bill.
From a wider perspective, this is part of a package of legislation that is aimed at reducing compliance and regulatory costs in New Zealand. We are working hard on the reform of the Resource Management Act. At a time when businesses are really struggling, that reform will enable a reduction in basic compliance and regulation costs for those businesses. A lot of businesses out there are struggling, and the message I have received is very clear, not only from the building industry in Auckland but also from small businesses, of which there are thousands in Auckland and particularly in Auckland Central, and which are really looking to be cut some slack.
That is one of the great things about this bill. Here we see a bill that will enable a reduction in compliance costs and regulation. I believe that we will see the impact quite directly, particularly on younger people who are trying to get into housing. Hopefully this will result in a reduction in compliance, a reduction in the costs of housing, and more affordable housing for young people. Another aspect of the bill that I will touch on includes the reduction in the statutory time frame for the processing of a building consent application from 20 working days to 10 working days where the application includes a national multiple-use approval. I know we received a number of submissions on that, and I am very supportive of that aspect of the bill.
Again, from a wider perspective, this bill is part of our first 100 days in Government. We have simplified and streamlined the Resource Management Act, we are reducing consent processing, and we are cutting compliance costs. The reform of the Building Act has the same intention as our work on the Resource Management Act, and it is part of this Government’s ongoing commitment to cut red tape. At this point, I also acknowledge that a number of submitters mentioned that a wider review of the Building Act is needed. That should be part of our second phase of reform, which aims to reduce compliance and regulation costs to the industry. Our second phase of reform of the Resource Management Act will focus more on the meaty policy aspects around the environment.
It is also really important to acknowledge the people who are struggling in the construction and building industry at the moment. The global recession is hurting them, and it is not an easy time for them. I think it is important for this House to take the time not only to put through legislation that may, in the long run, lead to reduced costs in terms of housing, but also to think of those people who may be struggling in terms of work. That is why I am very proud of this Government. We are doing everything we can to support small businesses, both through reduction of compliance costs and ensuring that those businesses can get access to things like credit. We want to make sure that those workers and businesses stay afloat during times that are tough.
I reiterate again my support for this legislation. I know a lot of people have worked hard on it, not only from this side of the House—and I commend the Minister—but also the chair of the Local Government and Environment Committee, Chris Auchinvole, and Shane Jones, who probably was the person who first introduced this legislation. I acknowledge the work on both sides of the House. I acknowledge what this legislation will do for young New Zealanders who may be looking to get into a home in the future, and for those small businesses, in terms of reducing compliance and regulation. I finish by saying that I commend the Building Amendment Bill (No 2), which amends the Building Act 2004, to the House.
