National licensing abandoned, real estate bodies applaud
The recent decision by the Council of Australian Governments (COAG) to abandon the National Occupation Licensing Authority (NOLA) from early next year is in property consumers' best interests, according to a number of industry bodies.
The Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin, said that the reduction of standards under NOLA's plans has been resisted for some time.
“We need national licensing, and the decision by COAG members to work together via the CAF and disestablish the NOLA from early 2014 is welcomed," said McKibbin.
“COAG members are acting in the best interest of consumers, industry and the real estate profession."
McKibbin said that the property market has "dodged a bullet" with this decision.
This comes after more than five years of discussion, with COAG initially looking into introducing a national system since 2009.
In April this year, at the 35th COAG meeting, there was little suggestion this end to NOLA may transpire, noting progress on the scheme, noting the expectation that national licensing would commence in 2014. In November 2012, however, debate flared around the proposed changes with the Real Estate Institute of Australia (REIA) regularly weighing in on the debate.
Amanda Lynch, CEO of the REIA previously noted concerns around the reforms.
"Many of the submissions, including that of the Real Estate Institute of Australia, are worried that in pursuit of a national system NOLA will adopt the lowest educational and training standard applicable in the states and territories now, and apply that nationally," she wrote, explaining that submissions about the national system spanned up to 3,500 responses, with more than 800 from property occupations.
This was the 36th meeting, with Prime Minister Tony Abbott included for the first time, with meeting minutes noting that, after extensive state-based consultation, the proposed reforms will not be pursued.
"To this end, States agreed to work together via the Council for the Australian Federation (CAF) to develop alternative options for minimising licensing impediments to improving labour mobility and to manage the orderly disestablishment of the National Occupation Licensing Authority from early 2014," the minutes state.
Meanwhile, on the COAG website, it notes that "The Commonwealth respects the States and Territories (the States) are sovereign in their own sphere. They should be able to get on with delivering on their responsibilities, with appropriate accountability and without unnecessary interference from the Commonwealth."
It then goes on to say that in future COAG will focus on a few important national priorities and on outcomes rather than process.
COAG members noted that most jurisdictions identified concerns with the proposed National Occupational Licensing Scheme model and costs. Alternatives will be looked at in 2014.
President of the Real Estate Institute of Australia (REIA), Peter Bushby, was similarly congratulatory of the decision.
“From the outset, we supported national licensing but objected to a flawed model that dumbed down educational and operational standards for our industry," said Bushby.
“We are pleased that the States have agreed to investigate approaches that would increase labour mobility and deliver net benefits for businesses and governments."
The aims of national licensing were to reduce red tape, increasing productivity, enchancing consumer confidence and protection, improve labour mobility.
More on the debate surrounding NOLA here.