mbie chc residents 21 06 13
DESCRIPTION
Meeting with MBIE and Christchurch residents 21 06 13TRANSCRIPT
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Christchurch 20 June 2013. Meeting with MBIE and Christchurch Residents groups.
Attendees
Hugo Kristinsson MBIE representatives
Adrian Cowie Malcolm MacMillan, Earthquake Recovery Operations Manager
Sarah Miles Peter Sparrow, Manager Building System Performance
Sarah O'Brien Steve Garner, Senior Advisor Earthquake Response
Emma Magnusdottir
John Sullivan on behalf of Community Law.
Suggested changes to the Building Act 2004 27/07/10. The ministry expresses concerns over consumer vulnerability. We refer to Building Act review 2: Delivering accountability in the residential construction sector Office of the Minister of Building and Construction
by Hon Maurice Williamson 27/07/2010 In these recommendations for changes of the Building Act the following is identified. "Residential consumers are vulnerable -‐they rarely commission building work, and they have limited knowledge of the associated risks and the options for managing these." Many consumers are unaware of legal warranties required under the Act.
"Improvement required for Consumers to hold contractors Accountable" Research carried out for the Department of Building and Housing in 2010 found that among a large, representative sample of consumers who had purchased significant building work in 2005 (valued at over $50,000 and for which a building consent was needed):
• 31% had a disagreement with their building contractor • 19% had a major dispute Major disputes often had more than one cause, and causes included: • timelines not being met (37% of those with a major dispute) • non-‐completion of the project (33% of those with a major dispute) • non-‐compliant or defective work (56% of those with a major dispute)
• poor workmanship (55% of those with a major dispute)
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Consultation on the Building Act review proposals indicated that there are three significant gaps in the services currently available to assist consumers to resolve a
building dispute: • a central source of advice on dispute resolution options • an 'early intervention' service to help parties to resolve any disagreement as early as possible through negotiation or mediation • a fast and cost-‐effective adjudication service which people are aware of and which is clearly available for general residential building disputes.
The post earthquake modifications of the Building Act contradict all these recommendations above and make the problems identified colossally worse.
No consideration is given to the Consumer Guarantees Act and the Fair Trading Act that are the cornerstones of our society. What legislation gives MBIE the right to ignore the requirements of The Consumer Guarantees Act and the Fair Trading Act and change building requirements after the residents have suffered earthquake damage to their homes?
EQC and insurance companies have claimed for the residents’ losses and by lowering the standards set in the Building Act, thousands of vulnerable residents are at a grave risk of receiving substandard repairs resulting in substantial transfer of equity. Another part of this equation is the proposed Consumer Law Reform Bill 287-‐2 The changes proposed in this bill appear to be for the purpose of protecting insurance companies from the consumers. That contradicts the purpose of the Act and appears to be against good conscience. We request an immediate amendment of this proposed bill to correct this or a cancellation of the bill.
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In Conclusion
1. Which of the post earthquake changes of the Building act address the problems identified in the proposed improvements by Maurice Williamson 27/07/2010
2. Which of the post earthquake changes make the identified problems worse? 3. How do the post earthquake changes address the vulnerability of residents? 4. What legislation gives MBIE the right to ignore the requirements of The
Consumer Guarantees Act and the Fair Trading Act and lower the standard of
building requirements after the residents have suffered earthquake damage to their homes?
5. Whose interest is being protected by the following proposed change of the Consumer Guarantees Act?
Clause 26A: new section 46L
In clause 26A, after new section 46L(3) (after line 22 on page 68), insert:
“(4) However, in relation to insurance contracts only, for the purposes of subsection (1)(b), a term in an insurance contract may be treated as being reasonably necessary in order to protect the legitimate interests of the insurer if the term relates to the underwriting risk accepted by the insurer.
We request a response in writing before the 28th of June 2013
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Fair Trading ActThe Fair Trading Act makes it illegal for traders to mislead consumers, give them false information, or use unfair tradingpractices. Information on the Act and what it means for you as a consumer.
The Fair trading Act: the basicsThe Fair Trading Act makes it illegal for traders to mislead consumers, give them false information, or use unfair tradingpractices.
The Act applies to advertising and selling of goods and services by traders.
The Act applies to services, new and second-hand goods, auctions and commercial sales. But it doesn’t cover private sales, forexample, buying something off your neighbour, or at a garage sale.
Your rights under the Fair Trading Act
Misleading behaviourA trader is misleading you if they lead you to think something is true when it isn’t. Examples of misleading behaviour:
An advertisement says a jumper is made from angora wool, when it is only 10% angora, 90% synthetic.
A shop which sells new TVs sells you a TV without telling you it is second-hand.
A job advertisement turns out to be an employment agency looking for new clients.
You tell a mobile phone salesperson that you are looking forward to using wireless internet on the mobile phone, but he doesn’ttell you that the mobile phone doesn’t have that function.
False informationA trader is giving you false information if they give you the wrong information about goods or services, or about your legalrights. Examples of false information:
The price is different than was advertised or on the sticker price.
A product labelled “Made in New Zealand” was actually made somewhere else.
A trader tells you that the store doesn’t give refunds under any circumstances.
You are offered a free gift for buying a certain item but the cost of the item being sold is inflated to cover part or all of the costof the ‘gift’.
Unfair trading practicesA trader is using an unfair trading practice if they use one of these methods:
Offering prizes without any intention of giving out a prize, or the prize is different to what was advertised.
Advertising an item really cheaply to get people into the store, but only having a very small number to sell.
Selling you a business or franchise with false claims about how much you can earn.
Pyramid selling schemes – a selling scheme where most of the money comes from joining more people up to the scheme, ratherthan from sales.
Demanding or accepting money when the trader has no intention of supplying the goods or services, or doesn’t intend to supplythem on time, or doesn’t intend to supply the same goods or services that were order
Solving a problem under the Fair Trading Act
What can I do if I have been misled, or received false information?If you have been mislead you can go back to the trader to try and resolve the problem. If you can show a trader has breached theFair Trading Act and this breach has caused you loss, you can go to the Disputes Tribunal to make a claim.
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For example, you buy a product which claims to cure baldness, after using it for some time, you remain bald as a snooker ball.You talk to your doctor and she tells you that this type of product cannot “cure” baldness. You could claim back the money youpaid in the Disputes Tribunal.
What are my rights if a shop advertises something at the wrong price?Although the shop has probably breached the Fair Trading Act, the only loss or damage you have suffered is a wasted trip to theshop. You can ask them to compensate you for this, but you cannot force the shop to sell you the goods at the advertised price.
What if I want to make a complaint?If you believe a trader has breached the Fair Trading Act you can let the Commerce Commission know. The CommerceCommission does not act on behalf of individuals but is does investigate fair trading issues. The Commerce Commissionenforces the Fair Trading Act and investigates issues according to set criteria. The Commerce Commission can apply for a courtorder to stop the offending and it can prosecute the trader.
Call 0800 94 3600
Product safety under the Fair Trading ActThe Minister of Consumer Affairs can recall an unsafe product under the Fair Trading Act. The Act also covers product safetystandards. It is illegal for traders to sell products that don’t meet theses standards.
Last updated 16 June 2010Related content
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Guarantees for services
Services must be provided with reasonable care and skillThis generally means that any work done for you must be at least as good as the work of a competent person with average skillsand experience in the type of work required.
Services must fit for the purposeAfter you have told the service provider what service you want from them, and they accept the job, they must make sure you getwhat you want.
Example: if you let the hairdresser know that you want your hair dyed a particular colour and they agree to do it, theymust give you hair of that colour.
However, there may be situations where it would not be appropriate to rely on discussions with a supplier.
Example: it may not be reasonable to expect a receptionist in a large service company to know enough about theservices to be able to say the service will do what you want.
You may not be able to rely on this guarantee or the guarantee of reasonable care and skill if you insist on a service which theservice provider informs you will not be fit for your purpose.
Example: you ask the drycleaner to try to remove an old stain from a jacket. The cleaner tells you that the stain can notcome out without taking colour out of the jacket. You insist on the work being carried out.
The dry-cleaner must take reasonable care and skill but may not be responsible if the jacket colour is changed, as youhad been told this could happen. If the dry-cleaner causes another problem such as the buttons melting, the cleaner maybe held responsible for that problem.
Services must be provided within a reasonable timeWhere you and the service provider have not agreed on a time when the job must be finished, the service provider mustcomplete the job within a reasonable time. "Reasonable" time will be judged on the time it takes a competent person who worksin that type of job to complete the task.
Reasonable priceIf a price for the work has not been discussed with the service provider, you do not have to pay a price which is unreasonable inthe circumstances.
Example: you hire a plumber to repair a leaking tap. The price was not discussed because you were in a hurry. You havehad plumbing work done before so you were expecting the bill to be approximately $45. You are very surprised when abill arrives for $120. You find out that plumbers normally charge $55 for this type of job so you only have to pay $55.
See the Publications section for a PDF version of this information in leaflet form, or order a copy online.
Last updated 8 June 2010Close