Annex 1: Questions and Answers
Licensing and Competency
1. What will be the nature of the occupational regulation regime for electrical work, plumbing, gasfitting and drainlaying?
Broadly, the Bill continues the existing requirements that a person must not do prescribed electrical work, gasfitting, sanitary plumbing or drainlaying unless licensed or covered by a specific exemption. Particular changes are:
- The existing registration plus licence regime will be replaced by a competency-based licence regime;
- The Boards will be able to determine appropriate categories of licence;
- Some exemptions will be replaced by the requirement to be licensed, but the licence can be in a category limited to just the particular skills required (e.g. to ensure gasfitters are competent to do the plumbing associated with fixing a gas water heater).
2. Why "competency-based licensing"?
Competency-based licensing enhances consumer confidence in employing electrical workers, gasfitters, plumbers and drainlayers.
Competency-based licensing involves making sure that before a worker is issued a new licence they have updated their competence in areas such as new equipment and changes in Standards and regulations. It is no longer sufficient to assume that qualifications gained as an apprentice are adequate for a life-time of work in the trade.
Many people do already regularly update their skills; competency-based licensing is to ensure that every licensed worker does that.
The style and structure of the regime is broadly consistent with that being introduced for licensed building practitioners under the Building Act 2004. This consistency will considerably aid clarity for consumers.
3. What are the different licence categories?
With the stronger emphasis on workers being competent in the areas in which they are licensed, it is necessary to provide more flexibility in matching competencies and work authorised under a particular licence category. It will save workers from having to update competencies that they don't require in their work. An example of how this works is the "special exemption" provision under section 57(1) of the Plumbers, Gasfitters, and Drainlayers Act 1976, in which the Plumbers, Gasfitters, and Drainlayers Board can authorise a person to do a particular range of gasfitting if the Board is satisfied that the person has the relevant competence for that work. The Bill proposes widening this approach to other licensing situations.
Licence categories will be determined by the Boards in consultation with those who will be substantially affected.
4. Will workers still require registration?
No. Holding a licence will be the required qualification and there will be a register of licence holders. The primary objective of occupational regulation is to ensure the competence of workers, to protect the safety of consumers and the public. Registration has previously been the focus for consumers to gauge worker capability. In fact being registered did not always provide this assurance. Competency-based licensing is a tool for providing the public with clarity and assurance of the current competence of workers.
5. Will workers have to start all over again if their licence lapses?
No. The fact that a person has been licensed in the past must also be retained on the Boards' registers. When workers want to obtain a licence after a period out of the trade they will only need to update their competencies since they last held (or were entitled to hold) a licence. The details of how much this will involve have yet to be determined. This work will be done by the Boards in consultation with interested parties.
6. Isn't Registration a qualification that cannot be taken away?
The Bill does not "take away" any person's registration. Indeed, it requires the Boards' registers to retain records of all persons who are currently registered, although the inclusion of this information does not confer any rights or privileges. The situation is much the same as that for School Certificate, which is no longer issued but still gives a record of attainment by those who have the Certificate.
The Bill does also provide for the issue of a Certificate to those who meet the applicable minimum standards for licensing. This certificate has the same broad function as Registration, but does not carry the same potential for consumer confusion.
7. Will there be any costs to licensed workers as a result of competency-based licensing?
Yes, there will be additional costs for some competency development courses.
The Boards will determine what requirements will have to be met to establish ongoing competence and workers will be free to choose amongst options. Some courses will be free, others not. On balance, after including an allowance for time and the inclusion of free courses, the extra cost to a person currently undertaking no professional development is estimated to be in the order of $600, but much less for those already doing some such courses.
Complaints
8. How will the electricity complaints process be improved?
Based on experience with the existing regime that provides for consumer complaints to the Chief Executive of the Department in charge of electrical worker licensing, proposed changes are that:
- Frivolous or vexatious complaints need not be progressed;
- Role clarity is improved by replacing the complaints assessment committee by an investigator who must investigate the complaint and prosecute it before the Board; and
- Others may be appointed to assist the investigator (this will be particularly helpful in ensuring the appropriate skills and experience are available for the investigation).
9. How will the plumber, gasfitter, and drainlayer complaints process be improved?
Based on experience with the existing regime that provides for consumer complaints to the Plumbers, Gasfitters, and Drainlaying Board, proposed changes are that:
- Frivolous or vexatious complaints need not be progressed;
- Others may be appointed to assist the investigator (this will be particularly helpful in ensuring the appropriate skills and experience are available for the investigation);
- The Board be given the power to issue an interim suspension while a complaint is being addressed, if considered necessary to protect the safety of members of the public.
The Licensing Boards (Electrical Workers Registration Board and the Plumbers, Gasfitters, and Drainlayers Board)
10. Will the existing Boards continue?
Yes. The Bill proposed that the Plumbers, Gasfitters, and Drainlayers Board will continue, although the Electrical Workers Registration Board will be re-named the Electrical Workers Licensing Board to reflect the move to licensing only regimes.
There are also some proposed changes to functions and membership of both Boards, but these are essentially consequential on other amendments - e.g. the Boards' roles in determining licensing categories.
The Bill preserves the roles and structures of the Boards. The Boards are to have sole responsibility for:
- Determining competence requirements for the issue of licences,
- Determining applications for licensing,
- Monitoring competence,
- Taking disciplinary action when necessary, and
- (Plumbers, Gasfitters, and Drainlayers Board only) setting fees associated with the Board's functions.
11. Does the Bill allow for greater co-operation between the Boards?
The Bill gives the Plumbers, Gasfitters, and Drainlayers Board the power to delegate to the Electrical Workers Licensing Board the authority to issue licences to do electrical work. The Electrical Workers Licensing Board will be given an equivalent power. The power encompasses the issue of new licences and renewals, competence review, and cancellation and suspension of licence and will be subject to conditions set by the delegating Board.
This will allow, for example, a gasfitter to gain both a licence to do gasfitting and also a licence to do specified electrical work (e.g.: test electrical controls on gas appliances) from the Plumbers, Gasfitters, and Drainlayers Board. It will be much easier to multi-skill, and considerably improve the service to consumers.
Safety Management Systems and Employer Licences
12. What are safety management systems and employer licences?
Employer licences are an alternative to licences for individual workers, and apply wherever prescribed electrical work or gasfitting is done. The Bill proposes that employer licences be issued by the Boards, and generally include conditions such as the type of work they permit and where that work may be done (e.g. they may limit the work to premises owned by the licence holder). Therefore only large employers, such as a steel works or a power generation company, are likely to apply for employer licences.
Safety management systems are to be required for all electricity and gas supply systems. They will require owners of such systems to have in place and follow procedures that ensure that the supply system does not present a significant risk of serious harm to any member of the public; or significant damage to any property. (Details of what they are required to cover will be spelled out in regulations.) Safety management systems cover not just work done, but all aspects of the design, construction, operation, maintenance and decommissioning. There is no licence requirement, but the systems are to be subject to audit.
Legislative Duplication with the Health and Safety in Employment Act
13. What are some areas of legislative duplication that are being removed?
Accident notifications are the main area of duplication that will change. Under present legislation, if an accident comes under both the Health and Safety in Employment Act and also the Electricity Act or Gas Act, it has to be notified to two separate agencies. The Bill proposes simplifying this, so that such accidents will have to be notified to only one agency.
Of the decisions this Bill is based on, one was to remove the requirement for workers in the electricity generation, transmission, and distribution sectors to be licensed once suitable competency controls under the Health and Safety in Employment Act are in place. This decision is not however being implemented at this stage, since it has been accepted that the pre-condition of suitable competency controls under the Health and Safety in Employment Act has not yet been achieved.
Process and timing
14. Why is a new Plumbers, Gasfitters, and Drainlayers Act proposed?
The amendments to the Act are so substantial that a new Act is considered the best approach.
15. When will the changes under the Bill come into effect?
The Bill provides for different matters to come into force at different times after the Bill receives the Royal Assent, and all licences at the changeover will become deemed licences for the remainder of their term. This will allow preparation time for the establishment of the new licensing provisions, safety management systems, etc.
Actual timing will be determined in consultation with stakeholders.
Transfer of responsibility for the Plumbers, Gasfitters, and Drainlayers Act
16. Why is the administration of the Plumbers, Gasfitters, and Drainlayers Act to be transferred to the Department of Building and Housing?
The decision has been taken as transfer is consistent with the overall objective of the Department of Building and Housing having oversight of various occupational licensing regimes related to building and housing.
Plumbing, gasfitting and drainlaying services are clearly associated with buildings and housing and therefore are an appropriate fit with the Department's objectives.
17. Does the transfer from the Ministry of Health mean that health is no longer important?
No. The Building Act clearly states health and safety amongst its purposes, and is the legislation that controls plumbing and drainlaying outcomes (i.e. the technical specifications of plumbing and drainage systems to achieve the health objectives).
The Ministry of Health has administrative responsibility for the regulation of health practitioners, who have little in common with plumbers, gasfitters or drainlayers.
Prior to the 1991 Building Act the regulation of plumbing and drainlaying was covered by the Health Act 1956. That covered such things as drains, septic tanks and other matters relating to plumbing and drainlaying requirements.
Historically the main focus of public health activity was through the direct control of the workforce. The Ministry no longer has the technical expertise or capacity to continue to be involved at that level.
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