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Statement of Service Performance

for the Department of Building and Housing for the year ended 30 June 2005

Prior to 1 November 2004, the Department was known as the Ministry of Housing. At this time, the Ministry was renamed the Department of Building and Housing, building policy functions were added from the Ministry of Economic Development and related functions were included from Housing New Zealand Corporation. On 30 November 2004 the functions of the former Building Industry Authority were also added.

Residential Tenancy Services
This output class involves the administration of the Residential Tenancies Act 1986. It includes the provision of information, education, advice and dispute resolution services. It also involves undertaking compliance activity and the administration of residential tenancy bond monies.
Key Business Strategies

The key business strategies in this output class are to:

  • work with other agencies and organisations to provide information about rights and obligations to target groups and to encourage the use of quality property management and business practices by landlords and property managers
  • encourage early intervention to reduce the incidence and level of rent arrears
  • understand the causes of the high rate of short-term tenancies, and develop and implement targeted responses to those groups where tenancies are failing
  • increase the proportion of disputes settled out of court
  • take, or support individuals to take, proceedings on breaches of the law that affect the wider public interest
  • investigate service delivery options that increase service flexibility to meet client needs.

Service Performance
Deliverable Performance to 30 June 2005
Bond Lodgements: All new bonds received will be accurately recorded on the system, based on information supplied by the tenant and/or landlord Performance is measured based on a sample of approximately 20 percent of bonds processed. The sample size is set based on individual staff performance. The error rate in 2004/05 was 0.80 percent, which is below the 1 percent target set for this area. Any errors are corrected and training needs identified and included in individual or group training
Bond Refunds: All bonds will be correctly refunded based on information held at the time of the refund Performance is measured based on a sample of approximately 20 percent of bonds received. The sample size is set based on staff performance. The error rate in 2004/05 was 0.80 percent, which is below the 1 percent target set for this area. Any errors are corrected and training needs identified and included in individual or group training
Bond Fund Investment: All bond investments will be made within the criteria of the investment strategy and within 0.25 percent of prevailing daily rates

All investments were correctly accounted for and made within the terms of the Department's investment strategy, apart from 4 months when the maximum percentage limit for a term of 1 year or less was exceeded by a maximum of 2.2 percent, and 3 months when the counterparty investment exceeded 35 percent of the fund by a maximum of 3.2 percent. This was largely the result of the reduction in the number of trading banks in New Zealand. The investment policy was amended to increase the banks able to be invested in from 1 December 2004

All new investments were within 0.25 percent of the prevailing daily rate

Public Information and Education: Survey awareness of Tenancy Services, rights and obligations and the use of high-quality property management practices

Use focus groups to survey the effectiveness of information for target groups

During 2005, Tenancy Services' primary strategy was to develop a 5-year public information and education strategy. This will provide the basis for research to be completed in 2005/06 and outyears. This has been completed and included a range of focus groups with key stakeholders to ensure the strategy meets the needs of these groups

Statement of Service Performance

for the Department of Building and Housing for the year ended 30 June 2005

Service Performance 2005
Actual
2005
Estimated
Demand/Target
2004
Actual
Bond Lodgements
Bond lodgements 211,105 200,000 213,881
Bond lodgements completed within 5 working days 94% 100% 97.5%
Bond Refunds
Bond refunds 200,520 200,000 203,030
Bond refunds completed within 2 working days 98% 100% 98.5%
Bond Advice
Bond advice calls1 190,391 210,000 206,223
Bond advice meets or exceeds quality standards 87% 75% 88%
Abandonment rate 4% 5% 3.5%
Tenancy Advice
Calls for tenancy advice 207,425 235,000 230,315
Tenancy advice meets or exceeds quality standards2 85% 75% 86%
Abandonment rate 6% 7% 4.4%
Dispute Resolution
Number of Tenancy Tribunal applications 45,362 46,500 43,890
Out of Court Settlement Rate (excluding vacated applications3) 67% 67.5% 62.3%
Number of Tenancy Tribunal hearings scheduled 22,943 24,500 22,000
Applications proceeding to hearing within 20 days (excluding vacated applications) 81% 80% 71.4%
% of voluntary compliance as a result of interventions 100% 80% 97%

Financial Performance (figures exclusive of GST) 2005
Actual
$000
2005
Main
Estimates
$000
2005
Supplementary
Estimates
$000
2004
Actual
$000
Revenue
Crown 6,140 5,542 6,140 5,899
Departmental 74 138 138 14
Other 12,002 9,934 11,691 9,903
Total Revenue 18,216 15,614 17,969 15,816
Total Expenses 16,192 15,614 16,212 15,096
Net surplus/(deficit) 2,024 - 1,757 720

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 1 As most refunds and lodgements are processed within 2 days of receipt, calls to determine if the lodgement form or refund form have been received have noticeably reduced.

 2 The quality assurance framework for the provision of bond and tenancy advice defines what quality advice is, and specifies the expectations for the delivery of advice. A sample of calls is assessed against the quality standards each year.

 3 Applications to the Tenancy Tribunal where the tenant has vacated the tenancy premises.

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