Latest news with #BuildingAct2004
Scoop
17-07-2025
- Business
- Scoop
Ministry Feared Costs Of $60m A Year To Review Laws Under Regulatory Standards Bill
Officials have warned David Seymour's Regulatory Standards Bill could be much more expensive than previous estimates suggested, and could lead to business uncertainty, slowing economic growth. Seymour is playing down the concerns, saying AI will solve some of those problems and the officials have not accounted for some aspects of the bill he expects will speed up government processes. The documents released under the Official Information Act show Ministry of Business, Innovation and Employment (MBIE) officials feared $50 million to $60m a year in costs to government departments would be on the low end of estimates. They also believed the bill would slow the passage of legislation by two to four weeks, and make the business environment more uncertain, slowing economic growth. Like other departments and in line with the Regulatory Impact Statement prepared by the Ministry for Regulation, MBIE also expressed "concerns about the proposals outlined and their ability to support genuine improvement in regulatory quality", and said there were other, better options for achieving the bill's aims. MBIE estimates of costs to review legislation In feedback ahead of last week's select committee hearings, MBIE officials particularly expressed concern over the additional costs the bill would impose, saying up to three full-time staff would be needed for each of the 95 laws the ministry is responsible for, costing the ministry up to $34.2m over multiple years. "This translates to 95 - 285 FTE in total ($11.4 to $34.2 million). The range in estimates reflects the differences in size and complexity between different pieces of legislation - larger Acts such as the Building Act 2004 would take significantly more resources to review than smaller legislation." As an example, the Building Act includes 680 sections and has 34 pieces of secondary legislation. "It is very roughly estimated that a dedicated team of 6-8 FTE (full time employees) with a manager may be required in order to undertake the consistency reviews and provide advice to the Minister on whether departures are justified." This figure does not include new legislation and regulations, which are covered by the RSB. MBIE estimated an additional full-time employee would be needed for each new bill the government asks the ministry to write, with the requirements of the Regulatory Standards Bill adding "an additional 2-4 weeks into the legislative process". "As an indication, MBIE has supported the passage of 6 Acts so far in 2024/25," the advice stated. "It is highly unlikely that we could meet these additional costs within baseline as suggested within the Cabinet paper without significant impacts on MBIE's ability to deliver Ministers' policy priorities." The figures also do not include the estimated 450 to 550 pieces of existing secondary legislation (regulations) the ministry also oversees - which had originally been included in the RSB's scope and could still be added at a later date. Questioned about the figures, MBIE said they were high-level estimates and could yet change. "The advice provided high level estimates with a range of costs and timeframes based on the work that might be required as a result of the Bill. We would need to revise and update these estimates when the Bill is passed." Estimated $50m to $60m annual cost to departments a 'lower bound' MBIE's advice also quoted from the Regulatory Impact Statement prepared by Seymour's Regulations Ministry an estimated annual cost to departments of "$50m-$60m per year", saying this was likely on the lower end. "As per previous MBIE advice, MBIE considers that the assumptions made by the Ministry for Regulation in developing that estimate make it a lower bound. In regulatory-heavy portfolios, MBIE estimates that up to 15 percent of the policy resource will need to be engaged in this work." The documents show MBIE offered to help the Regulations Ministry come up with a more accurate accounting. "We offered to work with the Ministry to better cost the work that would be involved in undertaking consistency reviews. In the 48 hour timeframe for comment, it was not possible to complete robust analysis on agency impact but our assessment is this [is] substantial for agencies with a significant volume of regulatory stock such as MBIE". However, the publicly available Regulatory Impact Statement predicted the bill would cost $18m annually across the whole of government. RNZ has sought clarification from MBIE about where the $50m to $60m figure came from, and whether it was still current. Seymour expects AI will bring department costs down Questioned about the costs, Seymour said the officials did not seem to be accounting for the fact the range of considerations in the RSB were narrower than already required under the Cabinet Manual, nor that it would replace most of the work done to produce Regulatory Impact Statements. "It's disappointing that MBIE officials think it's too hard to consider the impacts of their regulations on Kiwis," he said. "It says more about their productivity and attitude towards Kiwis than the Bill. Businesses who have to comply with their rules and regulations are constantly innovating and improving their processes, why can't these officials? "This isn't a zero-sum game. Kiwis all over the country are faced with endless costs caused by overzealous bureaucrats who aren't accountable. By preventing more bad regulations, and getting rid of pointless old ones, we'll save the country far more money than these bureaucrats could ever spend." He suggested AI could also help. "Look at the pace of development of AI, the cost estimates were based on a human reading through every piece of legislation, I suspect that actually we'll be able to do it much faster than we expected because of AI," he said. "Could it change the way that a government department scans the legislation it's responsible for to pick out things that might be consistent or inconsistent with a peer to principles? That's already here." He pushed back when asked if AI could be trusted to do that work. "I don't think the issue is that you're going to trust it. I think the issue is that you're going to use it to speed up the work that humans are ultimately trusted for." Victoria University senior lecturer in Artificial Intelligence Andrew Lensen warned artificial intelligence is not the silver bullet David Seymour has suggested it will be for reducing the cost of the Regulatory Standards Bill. "There are some benefits we've seen in the public sector with the use of AI to help public servants do some stuff, but I think what the minister is proposing is very optimistic and not at all what I'd suggest as a reasonable solution," Lensen told Midday Report. He said human oversight would be needed if AI was used to make sure there were no mistakes or inaccuracies. "If you need someone to baby-sit a model, or baby-sit that system, then it's sort of limited how much efficiency you can gain from that process," Lensen said. He added the return investment in AI is not clear because there is a big risk of legal costs if AI makes a mistake. Concerns over opposition to RSB affecting business confidence The advice shows MBIE was also concerned about the effect of the RSB on business confidence, because the principles in it were likely to change under a future government. "Because some of the principles in the Bill are viewed as novel or contentious, as opposed to widely accepted, there is a risk to the durability of the principles, and potentially the Bill as a whole. "Future legislation, designed to be consistent with novel principles, may also take on characteristics that are seen as unorthodox, and eventually be subject to regulatory churn." Emails between officials show the ministry raised with Immigration Minister Erica Stanford that the bill would make the regulatory environment less predictable, "which can constrain business' commitment to investment and growth". RNZ has sought comment from Seymour about the effect on business confidence. Cost estimates 'highly concerning' - Greens The Green Party's regulations spokesperson Francisco Hernandez said the ministry's cost estimates were highly concerning, saying officials would be focused on "doing make-work jobs just to comply with the extremist provisions of the Regulatory Standards Bill". He was also concerned the bill would have a chilling effect on regulations "that protect people and planet". "Instead of the money going to frontline public services, it's just going to be wasted on the cost of basically pursuing one person's ideological vanity project." He said Seymour's explanations sounded like "total BS", saying it was "desperation". He pointed to a study from the United Kingdom which suggested AI could save public servants two weeks in a 52-week year, less than 5 percent. "AI is quite good for doing the sort of low-level administrative tasks and simplifying those things, but the level of nuanced work of interpreting secondary legislation and how it applies to a principles framework that, again, is like created by human beings - it's not really the sort of thing that could easily be automated," Hernandez said. "Seymour is spinning." He said he agreed with the analysis on the bill impacting business confidence, and pushed back on suggestions the current opposition repealing the bill could be partly to blame for it - saying it was not just the opposition showing signs of not supporting it. "The coalition itself is showing cracks around the seams around that, so if Seymour can't even get the full unequivocal support of his colleagues in cabinet, then that goes to show how extreme this bill is." Cabinet removed requirement to review every 10 years after every ministry complained The documents also showed significant concern from MBIE about an earlier version of the RSB the ministries were asked to provide feedback on, which would have required all legislation and regulations to be reviewed at least once every decade. This requirement was removed by Cabinet before the bill was introduced to Parliament. An email in the documents showed concerns about the 10-yearly reviews was widespread. "David will address the resourcing issue in the meeting, as it has been raised by every agency and several ministers," the email said. Questioned about the prospect of changes to the bill following the select committee process, Seymour used the matter as an example of changes already made. "People said 'oh, that'll be too much work for the department', we said 'well, if it's too much work for the government to read all of its laws in 10 years, imagine the poor buggers who have to follow these laws out there anyway'. We said 'okay, we'll take the 10 year thing out, take pressure off that'. That's the kind of change they've already made."
NZ Herald
16-07-2025
- Business
- NZ Herald
Officials warn David Seymour's Regulatory Standards Bill could cost $60m
Like other departments and in line with the Regulatory Impact Statement prepared by the Ministry for Regulation, MBIE also expressed 'concerns about the proposals outlined and their ability to support genuine improvement in regulatory quality', and said there were other, better options for achieving the bill's aims. MBIE estimates of costs In feedback before last week's select committee hearings, MBIE officials particularly expressed concern over the additional costs the bill would impose, saying up to three fulltime staff would be needed for each of the 95 laws the ministry is responsible for, costing the ministry up to $34.2m over multiple years. 'This translates to 95-285 FTE in total ($11.4m to $34.2m). The range in estimates reflects the differences in size and complexity between different pieces of legislation – larger acts such as the Building Act 2004 would take significantly more resources to review than smaller legislation.' As an example, the Building Act includes 680 sections and has 34 pieces of secondary legislation. 'It is very roughly estimated that a dedicated team of 6-8 FTE (fulltime employees) with a manager may be required in order to undertake the consistency reviews and provide advice to the minister on whether departures are justified.' This figure does not include new legislation and regulations, which are covered by the RSB. MBIE estimated an additional fulltime employee would be needed for each new bill the Government asks the ministry to write, with the requirements of the Regulatory Standards Bill adding 'an additional 2-4 weeks into the legislative process'. 'As an indication, MBIE has supported the passage of 6 Acts so far in 2024/25,' the advice stated. 'It is highly unlikely that we could meet these additional costs within baseline as suggested within the Cabinet paper without significant impacts on MBIE's ability to deliver ministers' policy priorities.' The figures also do not include the estimated 450 to 550 pieces of existing secondary legislation (regulations) the ministry also oversees – which had originally been included in the RSB's scope and could still be added at a later date. Questioned about the figures, MBIE said they were high-level estimates and could yet change. 'The advice provided high-level estimates with a range of costs and timeframes based on the work that might be required as a result of the bill. We would need to revise and update these estimates when the bill is passed.' Estimated cost a 'lower bound' MBIE's advice also quoted from the Regulatory Impact Statement prepared by Seymour's Regulations Ministry an estimated annual cost to departments of '$50m-$60m per year', saying this was likely on the lower end. 'As per previous MBIE advice, MBIE considers that the assumptions made by the Ministry for Regulation in developing that estimate make it a lower bound. In regulatory-heavy portfolios, MBIE estimates that up to 15 percent of the policy resource will need to be engaged in this work.' The documents show MBIE offered to help the Regulations Ministry come up with a more accurate accounting. 'We offered to work with the ministry to better cost the work that would be involved in undertaking consistency reviews. In the 48-hour timeframe for comment, it was not possible to complete robust analysis on agency impact but our assessment is this [is] substantial for agencies with a significant volume of regulatory stock such as MBIE'. However, the publicly available Regulatory Impact Statement predicted the bill would cost $18m annually across the whole of government. RNZ has sought clarification from MBIE about where the $50m to $60m figure came from, and whether it was still current. Seymour says AI will bring costs down Questioned about the costs, Seymour said the officials did not seem to be accounting for the fact the range of considerations in the RSB were narrower than already required under the Cabinet Manual, nor that it would replace most of the work done to produce Regulatory Impact Statements. 'It's disappointing that MBIE officials think it's too hard to consider the impacts of their regulations on Kiwis,' he said. 'It says more about their productivity and attitude towards Kiwis than the bill. Businesses who have to comply with their rules and regulations are constantly innovating and improving their processes, why can't these officials? 'This isn't a zero-sum game. Kiwis all over the country are faced with endless costs caused by overzealous bureaucrats who aren't accountable. By preventing more bad regulations, and getting rid of pointless old ones, we'll save the country far more money than these bureaucrats could ever spend.' He suggested AI could also help. 'Look at the pace of development of AI, the cost estimates were based on a human reading through every piece of legislation, I suspect that actually we'll be able to do it much faster than we expected because of AI,' he said. 'Could it change the way that a government department scans the legislation it's responsible for to pick out things that might be consistent or inconsistent with a peer to principles? That's already here.' He pushed back when asked if AI could be trusted to do that work. 'I don't think the issue is that you're going to trust it. I think the issue is that you're going to use it to speed up the work that humans are ultimately trusted for.' Concerns over business confidence The advice shows MBIE was also concerned about the effect of the RSB on business confidence, because the principles in it were likely to change under a future government. 'Because some of the principles in the bill are viewed as novel or contentious, as opposed to widely accepted, there is a risk to the durability of the principles, and potentially the bill as a whole. 'Future legislation, designed to be consistent with novel principles, may also take on characteristics that are seen as unorthodox, and eventually be subject to regulatory churn.' Emails between officials show the ministry raised with Immigration Minister Erica Stanford that the bill would make the regulatory environment less predictable, 'which can constrain business' commitment to investment and growth'. RNZ has sought comment from Seymour about the effect on business confidence. Cost 'highly concerning' - Greens The Green Party's regulations spokesperson Francisco Hernandez said the ministry's cost estimates were highly concerning, saying officials would be focused on 'doing make-work jobs just to comply with the extremist provisions of the Regulatory Standards Bill'. He was also concerned the bill would have a chilling effect on regulations 'that protect people and planet'. 'Instead of the money going to frontline public services, it's just going to be wasted on the cost of basically pursuing one person's ideological vanity project.' He said Seymour's explanations sounded like 'total BS', saying it was 'desperation'. He pointed to a study from the United Kingdom which suggested AI could save public servants two weeks in a 52-week year, less than 5%. 'AI is quite good for doing the sort of low-level administrative tasks and simplifying those things, but the level of nuanced work of interpreting secondary legislation and how it applies to a principles framework that, again, is like created by human beings – it's not really the sort of thing that could easily be automated,' Hernandez said. 'Seymour is spinning.' He said he agreed with the analysis on the bill impacting business confidence, and pushed back on suggestions the current opposition repealing the bill could be partly to blame for it – saying it was not just the opposition showing signs of not supporting it. 'The coalition itself is showing cracks around the seams around that, so if Seymour can't even get the full unequivocal support of his colleagues in cabinet, then that goes to show how extreme this bill is.' Requirement to review removed The documents also showed significant concern from MBIE about an earlier version of the RSB the ministries were asked to provide feedback on, which would have required all legislation and regulations to be reviewed at least once every decade. This requirement was removed by Cabinet before the bill was introduced to Parliament. An email in the documents showed concern about the 10-yearly reviews was widespread. 'David will address the resourcing issue in the meeting, as it has been raised by every agency and several ministers,' the email said. Questioned about the prospect of changes to the bill following the select committee process, Seymour used the matter as an example of changes already made. 'People said 'oh, that'll be too much work for the department', we said 'well, if it's too much work for the government to read all of its laws in 10 years, imagine the poor buggers who have to follow these laws out there anyway'. We said 'okay, we'll take the 10-year thing out, take pressure off that'. That's the kind of change they've already made.' – RNZ
1News
02-07-2025
- 1News
Auckland church trust, rep convicted and fined for illegal construction
An Auckland church and its representative have been convicted and fined for numerous charges related to illegal building work. The Samoan Congregational Christian Church of New Zealand Māngere Trust and its representative, Sean Palala, were found guilty of 15 breaches of the Building Act 2004 and Resource Management Act at the Auckland District Court. The conviction, which followed two separate prosecutions, was described as "decisive" by Auckland Council. The case against the church trust and Palala revolved around unauthorised construction at their church and community centre on 59 McKenzie Rd — carried out without the necessary building and resource consents. Despite enforcement actions imposed by the council, the trust and Palala failed to comply with statutory notices, court orders, and legal requirements. ADVERTISEMENT The community centre and church on MacKenzie Road in Mangere. (Source: Supplied) The first prosecution found the trust guilty of failing to comply with a notice to fix, and failing to comply with an abatement notice. Palala was found guilty of failing to comply with a notice to fix. The notice required the unauthorised building work to be removed, or for alternative measures to be taken to ensure the project was legal. An additional 12 charges were laid during the second prosecution, which included violations of an enforcement order, and it was found that the church was still being used despite the enforcement order prohibiting its use from May 2, 2023, onwards. Gatherings continued on multiple occasions, despite a dangerous building notice which restricted access to the building. These violations were committed while the defendants awaited sentencing for the earlier offences. ADVERTISEMENT The community centre and church on MacKenzie Road in Mangere. (Source: Supplied) Auckland Council's head of prosecutions, John Kang, said the breaches were "highly deliberate". "Despite being personally warned by the Chief Environment Court Judge and served with the enforcement order on two separate occasions, Mr Palala went on to breach the interim enforcement order on at least four occasions," Kang said. "Furthermore, a copy of the dangerous building notice remained affixed to the front window by the main entrance to the church building throughout the entire duration of the offending.' In his decision, Judge David Kirkpatrick said: 'Having heard the evidence presented by the council and in the absence of any challenge to that evidence, I accept the submission of the prosecutor that the charges are proved beyond reasonable doubt. The morning's headlines in 90 seconds, including Australia's weather bomb, the surprising costs of getting one more dog, and BTS are back. (Source: 1News) "I find the Samoan Congregational Christian Church of New Zealand Māngere Trust and Sean Palala both guilty of the charges they face." ADVERTISEMENT The trust was fined $20,000 for the initial offence, $36,700 for the subsequent offending, and was ordered to pay $25,300 to the council for hoarding costs. Palala was sentenced to 400 hours of community work and fined $7000. The property on which the church and community centre were being built has since been sold. Auckland Council said, in a statement, the case highlighted the importance of compliance with building laws. "The repeated breaches and continued use of an unsafe structure posed significant risks, reinforcing the need for enforcement actions against non-compliance." David Pawson, field operations manager for licensing and compliance at the council, said the verdict sent a "strong message" that ignoring enforcement orders and continuing to use unsafe buildings would not be tolerated. 'Compliance with building and resource consent laws is essential for the safety of our communities.'
Scoop
01-07-2025
- Scoop
Unsafe Church Building Results In Conviction
The Auckland District Court recently delivered a decisive ruling, finding the Samoan Congregational Christian Church of New Zealand Māngere Trust and its representative, Sean Palala, guilty on all charges in a long-running prosecution concerning the unlawful construction and use of a church and community centre at 59 McKenzie Road, Māngere. This verdict follows two separate prosecutions over recent years, culminating in 15 guilty verdicts across multiple breaches of the Building Act 2004 and Resource Management Act 1991. The court imposed a fine on the Samoan Congregational Christian Church of New Zealand Māngere Trust: • $20,000 for the initial offending (1 x breach of abatement and 1 x breach of notice to fix) • $36,700 for the further offending (4 x breach of enforcement order and 2 x breach of dangerous building notice) • Ordered to pay $25,300 reparation to Auckland Council for hoarding costs. Palala was convicted on all charges and sentenced to 400 hours community work and fined $7,000 for his offending. The case revolved around the unauthorised construction of the church and community centre without the necessary building and resource consents. Despite clear enforcement actions by Auckland Council, the Trust and Mr Palala repeatedly failed to comply with statutory notices, court orders and legal requirements. Guilty verdicts in two prosecutions In the initial prosecution, the Trust was found guilty of failing to comply with a Notice to Fix issued under the Building Act 2004 and failing to comply with an Abatement Notice issued under the Resource Management Act 1991. Mr Palala was also found guilty of failing to comply with a Notice to Fix. The notice required the removal of unauthorised building work or alternative measures to be taken to ensure compliance with the law. In the second prosecution, 12 additional charges were laid, including violations of an enforcement order issued by the Auckland District Court. The Court found the Trust had continued using the church building in direct contravention of the interim enforcement order prohibiting its use from 2 May 2023 onward. The Court determined that gatherings had continued on multiple occasions, despite a dangerous building notice also restricting access to the building. The Council's submissions At sentencing, Council's Head of Prosecutions, John Kang, told the Court the breaches of the Court's enforcement order were 'highly deliberate', having been committed while the defendants were awaiting sentence for the earlier offending. Kang further stated that, 'despite being personally warned by the Chief Environment Court Judge and served with the enforcement order on two separate occasions, Mr Palala went on to breach the interim enforcement order on at least four occasions. Furthermore, a copy of the dangerous building notice remained affixed to the front window by the main entrance to the church building throughout the entire duration of the offending.' The Judge's findings In delivering his decision, Judge Kirkpatrick found the prosecution's case had been proven beyond reasonable doubt. He stated: 'Having heard the evidence presented by the council and in the absence of any challenge to that evidence, I accept the submission of the prosecutor that the charges are proved beyond reasonable doubt. 'I find the Samoan Congregational Christian Church of New Zealand Māngere Trust and Sean Palala both guilty of the charges they face.' The Judge emphasised the repetition of offending by the defendants was a 'seriously aggravating factor' with no evidence that any steps had been taken either to fix or demolish the building. Significance of the case The case highlights the importance of compliance with the Building and Resource Management Acts to ensure public safety. The repeated breaches and continued use of an unsafe structure posed significant risks, reinforcing the need for enforcement actions against non-compliance. Auckland Council repeated its commitment to uphold the law and ensure all structures meet necessary safety and planning regulations. David Pawson, Field Operations Manager for Licensing and Compliance at Auckland Council said this verdict sends a strong message that ignoring enforcement orders and continuing to use unsafe buildings will not be tolerated. 'Compliance with building and resource consent laws is essential for the safety of our communities.' The council will continue monitoring compliance with legal requirements across Auckland to prevent similar breaches in the future.
Scoop
04-06-2025
- Scoop
Manslaughter Charges For Three People Related To The Loafers Lodge Fatal Fire
Today, Police have charged three people with manslaughter in relation to the fatal fire at Loafers Lodge on 16 May 2023. Two men aged 75 and 58, and a 70-year-old woman will appear in the Wellington District Court later today, each facing charges of manslaughter. Police have spoken to a third man and expect to also charge him with manslaughter in the coming days. A dedicated team at Police has been working since the tragedy to establish if the state of the building and the management and compliance of its fire safety systems contributed to the fatal outcome. The people we have charged today were involved with the management and operation of the building, and Police allege they were responsible for aspects of the building's fire safety system. Police previously charged a 50-year-old man with murder in relation to deliberately lighting the fatal fire. This matter is before the High Court, with a trial scheduled to start on 25 August 2025. Police, Fire and Emergency and the Ministry of Business, Innovation & Employment would like to take this opportunity to remind all those who own or manage a building, particularly buildings with sleeping accommodation, of their responsibility to ensure those who occupy their premises are protected from fire. • Ensure your obligations are met under the Fire and Emergency New Zealand Act 2017 by having the necessary evacuation procedures in place, and an approved evacuation scheme if you have a 'relevant building'. • Ensure the means of escape from fire for your building are maintained as outlined in the Fire and Emergency New Zealand Regulations 2018. • Where applicable, ensure you understand the maintenance requirements for the specified systems outlined in your building's compliance schedule as required under the Building Act 2004, particularly those relating to the building emergency warning system or fire alarm. • If you are the owner of a tenanted residential property, ensure your fire safety obligations are met under the Residential Tenancies Act 1986. The loss of life and injuries experienced during this fire were preventable, and Police would like to acknowledge the long-term impact, on those who lost loved ones, the residents who lost their friends, their home and treasured personal property, as well as the many others that have been affected by the far reaching and devastating event. As this matter is now before the courts, police will not be commenting further.
