Land agents’ new fees withdrawn

Press, 24 August 1977, Page 1

Land agents’ new fees withdrawn

PA Wellington The Real Estate Institute has agreed to withdraw its new scale of fees paid to land agents pending an investigation by the Department of Trade ant industry. The withdrawal of the new scale, which raised the charges by up to 33 per cent, was agreed at a meeting yesterday between institute representatives and the Minister of Trade and Industry (Mr AdamsSchneider).

The president of the institute, (Mr T. Molesworth), said after the meeting that it was obvious there had been certain “misconceptions.” The institute, with full legal opinion, and in the absence of any regulations, had revised the scale and considered it was fully justified in doing so.

“However, with the discussions, it is obvious there have been some mistakes on both sides. We have agreed to withdraw the new scale pending an investigation,” he said.

Mr Molesworth said the institute was fully prepared to co-operate in the investigation and “fully confident that the situation we have presented will oe ratified.” He was critical of the attitude adopted by the Prime Minister, (Mr Muldoon), who said the institute’s action in raising the scale was contrary to

the spirit in which the freeze covering professional charges was lifted on August 14. "I am dismayed at the Prime Minister’s comments,” Mr Molesworth said. “I can assure him there is no need whatsoever to bring in sledgehammer democracy to deal with the Real Estate Institute."

Mr Adams-Schneider said the investigation would be done by the Secretary of Trade and Industry, who would have the power to set the new scale.

Neither the Minister nor Mr Molesworth could say whether any people charged the new fees would be entitled to a refund.

The Minister said the Government intended to monitor carefully any increases in professional charges.

The Stabilisation of Prices Regulations, 1974, would be amended to provide a comprehensive system of surveillance of professional charges. Mr Adams-Schneider said professional charges had been subject to a freeze for 15 months and some increases could be expected now that the Professional Charges (Price Freeze) Regulations. 1976, had ended.

For those professions using a scale of charges there was an obligation to supply details of the scale

that was in effect immediately before the end of the freeze.

In addition, all scale changes would have to be reported to Trade and Industry.

“For those professions that do not work on a scale, but determine charges individually, an additional obligation is imposed to keep records of fee increases and the basis for arriving at the increases and to supply these on request to the department,” the Minister said.

His department would be instructed, under the new powers conferred on it, to make regular surveys of increases tri professional charges, to report to him on trends and to recommend any necessary steps that should be taken.

Mr Adams-Schneider said the Stabilisation of Prices Regulations, 1974, would be amended to cover basically the same groups as had been covered by the Professional Charges (Price Freeze) Regulations.

However another one or two groups would be added to the list. The Minister said that charges for groups not mentioned in the amendment to the regulations would remain subject to the full controls of the Stabilisation of Prices Regulations, 1974.