Tuesday, 6 November 2007
Dunne: Real estate now government controlled
UnitedFuture leader Peter Dunne says the government's planned changes to the real estate industry effectively place the
industry under government control and go too far.
He says that while changes to the regulation of the real estate industry are overdue, they should have been made through
strengthening the existing disciplinary structures and holding the Real Estate Institute more accountable for the
conduct of real estate agents.
"Instead, the government has opted to impose its own regulatory structure on the sector, making a mockery of its
previous commitment to industry self regulation.
"Since the industry is required to bear the cost of this new imposition, the net immediate effect will be that that cost
will be borne by homebuyers, the very group the government says it wants to protect," he says.
Mr Dunne says the changes are more about the government being seen to do something, rather than establishing a system
that will work.
"I hold no particular candle for the real estate industry, which does need a shake-up, but I think the Minister has got
carried away on an emotional tide on this issue, which has become more focused on being seen to do something bold, than
making the system work.
"The most worrying aspect of this is the warning it implies to all other industry sectors that the government will step
in and take over their regulation if they do not behave the way the government wants, thus increasing compliance costs
and making it more difficult to do business in New Zealand.
"I am surprised business groups who normally rail against these issue are standing by and letting it happen," he says.