REAL ESTATE LICENSING

The Hon. S.G. WADE (14:32): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question relating to real estate agent standards.

Leave granted.

The Hon. S.G. WADE: Last sitting week, on 4 May I asked the minister a series of questions related to changes in educational standards for real estate sales representatives as a result of national licensing. The minister's response did not mention the national reforms, as she took the opportunity to outline the state's registration requirements for land real estate agent representatives, which have operated since July 2008. The minister outlined how the government considers that those reforms have 'lifted the bar'. To quote her specifically, she said:

So I think that this government has certainly shown that it has a commitment to improving standards within the industry, whilst at the same time being very mindful not to put in place too much of an onerous system in terms of delivering too much red tape to the system that then is a disincentive to thriving business. I think that this government has got the balance right.

Yet, under the proposed regulatory scheme within the national occupational licensing scheme, real estate agents will no longer be required to undertake training to a diploma level. Similarly, sales representatives will be required to undertake only approximately one-third of the existing requirements. My questions are:

1. What is the government's position on the proposed national registration?

2. If, with the benefit of three years' experience, the minister can tell this council that the government got the balance right in its 2008 reforms, will the minister now oppose the reduction of nearly 60 per cent in educational requirements proposed under national registration?

3. If not, does she now consider that her 2008 changes were too onerous in terms of educational standards?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (14:34): I thank the honourable member for his important questions. Indeed, a great deal of work has been completed at a national level in relation to the National Occupational Licensing System (NOLS).

In July, right back in 2008, COAG agreed to establish a national licensing system for selected occupations, and that move to the national occupational licensing system was intended to try to remove inconsistencies across state/territory borders and to allow for a greater mobility of workforce, particularly in terms of trades and organisations that work across borders, which is an increasing trend.

The NOLS is due to commence in July 2012 and will involve electricians, plumbers, gasfitters, air conditioning and refrigeration mechanics and property agencies, excluding conveyancers and valuers, and from July 2013 for the building industry, conveyancers and valuers. The benefits of the national licensing system for these selected occupations are about helping to reduce costs for business, ensuring consistent behaviour, simplifying arrangements for licence holders and obviously maintaining public protection for consumers.

Following the establishment of the intergovernmental agreement in 2009, work has been progressing on the development of this system. Regulators, the industry and obviously key stakeholders are playing a key role in designing this new system. This ensures that the regulatory and industry expertise harnessed during the current process of improvements to mutual recognition and the views of stakeholders are used in the design of the NOLS system. It is about trying to reduce costs, streamline arrangements across borders and reduce burdens to businesses.

The National Occupational Licensing Authority will be established to set licensing policy, and it is planned to commence operation later this year, is my understanding. The national licensing legislation passed by the Victorian parliament was the host jurisdiction in September 2010, with select provisions coming into operation on 1 January. Western Australia, Northern Territory, South Australia and all other states and territories will pass legislation which then makes the Victorian legislation become law.

Members will obviously recall the Occupational Licensing National Law (South Australia) Bill, which sought to apply that national law in South Australia and which was passed here in November 2010 with, as members will recall, a couple of amendments. Although that system is in place, we work together with the industry and other key stakeholders. We work across jurisdictions to try to work out the best common standard to apply. I believe it is beneficial to go down this path of a national occupational licensing system.

There are some significant benefits in terms of cost, streamlining processes and making it easier for businesses that are positive steps forward. There are a wide range of different operational matters that occur in different jurisdictions, so each jurisdiction has had to sit down and work through its current arrangements and try to work out the best common system in terms of moving forward and in terms of attempting to ensure that we have the best standards in place—best consumer protections as well as quality standards—for these operators.