wouldn’t support others in the system. However, this assessment relies on other proposals in the package being successful to make sure risks in the building process are well managed. Building levy The building levy is payable by building owners or developers on successful building consent applications for projects that are worth more than a specified amount. The revenue from the levy is used to fund a range of Ministry of Business, Innovation and Employment (MBIE) functions and activities under the Building Act. The current levy is higher than it needs to be, so it’s proposed to: - reduce it from $2.01 to $1.50, to bring it in line with Treasury’s best practice guidelines - standardise the threshold to which the levy applies, to $20,444 including GST - allow MBIE to spend the funds raised by the building levy on broader stewardship of the building sector. Offences, penalties and public notification It’s important that enforcement agencies have enough time to investigate possible offences, the consequences are fair in proportion to the offence, and the penalties are different for individuals and organisations. Proposals include: - increasing the maximum financial penalties. - setting different maximum penalties for individuals and organisations. - extending the time enforcement agencies can lay a charge from six months to 12 months. - modifying the definition of ‘publicly notify’ in section 7 of the Building Act to reflect the changes in the way people access information. Next steps The consultation process for the Reform Programme closed on 16 June. There’s still a lot of work that needs to be done. MBIE officials will be analysing the submissions received and using that information to refine the proposals to ensure the best outcomes for all New Zealanders. I will then decide what changes to recommend to Cabinet. At some point, a summary of the submissions will be available on the MBIE website. To keep up to date with what’s happening in the Reform Programme, you can join the mailing list on the Building.govt website.
ABOUT THE AUTHOR hon Jenny Salesa is New Zealand's first Tongan speaking Member of Parliament and the first Tongon born Cabinet Minister of the Crown.
Salesa was sworn into Cabinet as a Minister of the Crown for Building and Construction and Ethnic Communities, and with Associate responsibilities for Education, Health, Housing and Urban Development.
She graduated from the University of Auckland with a Bachelor of Arts, and Bachelor of Laws.
Jenny Salesa Minister for Building and Construction