Northern Territory Second Reading Speeches

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BUILDING AMENDMENT BILL 2003

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill be now read a second time.

At the Council of Australian Governments meeting of April 1995, heads of government signed three agreements establishing the National Competition Policy. They are commonly referred to as the NCP agreements. Under the NCP agreements all states and territories were required to develop timetables for reviewing all existing legislation, conduct reviews in accordance with the timetable and, where appropriate, amend or repeal legislation that restricts competition.

The Building Act was identified as requiring NCP review. The Building Act was reviewed in accordance with National Competition Policy in October 1999. The Building Act was identified as requiring general review at this time, and the National Competition Policy review was not implemented on the understanding that it would be amended to accommodate the amendments of the general review.

The general review has encountered numerous delays and it has been decided to implement recommendations of the National Competition Policy review separately in order to comply with the requirements of National Competition Policy. The National Competition Policy review recommends repealing sections 21, 41 and 46 of the Building Act and retaining 14 other sections that have been identified as anti-competitive, because it is considered to be in the public interest to mandate standards of building practitioners, building products and practices. These recommendations are consistent with the legislative frameworks of other jurisdictions and the national agenda on building regulation.

The purpose of this bill is to amend the Building Act to repeal sections 21, 41 and 46. Section 46 comprises the entire Part 4 Division 3 of the Building Act. Section 21 allows the minister to declare that for projects of Territory or regional significance, the Director of Building Control is to exercise the functions of a building certifier. That provision has not been utilised in the eight-year operation of the act, and the circumstances where this provision would be appropriate are difficult to imagine and cannot be defended on the grounds of public benefit considerations.

Section 41 prevents a building certifier, under the direction of the minister, acting due to potential conflict of interest. This provision has also not been exercised in the life of the legislation. The primary difficulty of the provision is that the minister must become aware of the circumstances which he or she regards as a potential conflict of interest and make the direction. It does not require the certifier to disclose the potential conflict of interest nor oblige a certifier to disqualify himself or herself from the job on the basis of a potential conflict of interest.

Section 46 exempts public authorities from the requirement to engage a building certifier and may instead appoint an employee to perform that function. There is no requirement for that person to hold the qualification of a building certifier. This provision is anti-competitive because it restricts the access of suitably qualified persons from the private sector. There is no benefit to the public in the exercise of this limitation.

Madam Speaker, I commend the bill to honourable members.

Debate adjourned.

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