11. LYNNE PILLAY (Labour—Waitakere) Link to this
to the Associate Minister of Justice
Is he satisfied that the current regulatory regime for the real estate industry offers sufficient protection to consumers?
Hon CLAYTON COSGROVE (Associate Minister of Justice) Link to this
No, I am not. The regime for the real estate industry needs a major overhaul. The latest example is that of a Hamilton real estate agent who was warned by the Commerce Commission, and also fined the paltry sum of $750 by the industry for breaching its code of ethics, who cost John and Caitlin Ottaway at least $35,000. This individual was yesterday named by Harcourts as the top sales consultant for the central region. Harcourts describes the individual as “one of the most highly principled, ethical individuals that we work with.” This level of praise for this individual shows that the senior leadership in the real estate industry is completely out of touch with reality, and that the industry is overdue for major reform.
Hon CLAYTON COSGROVE Link to this
The industry currently has the privilege of self-regulation. I gave the industry two chances to clean up its act under its own steam and at its own expense. Both times the industry’s proposals fell well short. At the end of this month I will be releasing the Government’s preferred options to clean up the industry and drive the so-called land sharks, who are ripping off good, decent people, out of it. Those real estate agents give the majority of hard-working, honest real estate agents a bad name. The reforms will deliver open, transparent, accessible, fair, and effective discipline and complaints processes. They will revamp licensing, training, enforcement, and industry standards, and, above all, will deliver robust, reliable, and inexpensive consumer protection.
Simon PowerHon CLAYTON COSGROVE Link to this
I will continue to announce the reform. That member had 9 years to do something about it and did nothing. I will continue to highlight to this House when so-called land sharks, like the person I mentioned, rip off good, honest, individual Kiwis, and also give every other real estate agent a bad name. If that member does not like it, tough! [ Interruption]
Madam SPEAKER