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Too many older people entering some retirement villages lacked knowledge and information about what exactly they were buying. In some cases, this created financial hardship, and increased vulnerability. Government took action to:

• protect residents' rights
• create an industry based on upfront disclosure providing information to residents and intending residents
• set out a legal framework for operators to run villages
• provide a disputes resolution process.

Since passing the Retirement Villages Act in 2003, we know more than 30,000 people are living in around 375 retirement villages. Currently there are 8 residential units here, with a further 152 units planned to be built by 2015. I wish you well for your future plans.

This is the first time that I have visited a retirement village in development. Next year, the first phase of the community facilities are to be built and I think the list of what Vision aims to do is impressive: swimming and spa pools, a gymnasium, café, library/cinema, permanent lounge, petanque court and health centre.

As well as your operator being busy, I too have been busy working to develop a Retirement Villages Code of Practice. On 2 July 2008 I announced that the formal consultation on the proposed Retirement Villages Code of Practice 2008 had begun.

The Code of Practice 2008 sets out the minimum standards that operators must meet and provides valuable consumer protection for residents and intending residents.

The Code of Practice 2008 covers the staffing requirements of retirement villages, safety and personal security of residents, fire protection and emergency management, how residents can transfer between different styles and serviced residential units, meetings of residents and their operator, the complaints process, accounting procedures, maintenance and upgrading of village facilities, termination of contracts, and communication between operators and residents.

I am informed that officials in the Department of Building and Housing sent three copies of the proposed Code of Practice 2008 to Vision Bay of Islands, as well as a poster, advertising the consultation. I do hope you have received the information. If not, I can arrange for more to be sent to you.

The consultation provides all of you - the operator, staff and residents to have your say on what should be included in the Code of Practice.

For residents, it is important that government provides documentation that is easily understandable and, more importantly, of practical use to you!

For operators of retirement villages I hope what we are proposing enhances your business model. If it doesn't, this is the time to tell us so that any issues can be put right.

The consultation ends on 15 August 2008 and you can make written submissions to either the Department of Building and Housing, or the Retirement Commissioner, or both.

It may be useful for me to explain what happens once your submissions have been received by either the Department of Building and Housing or the Retirement Commissioner.

Officials in both agencies will independently assess the submissions and make recommendations to me on the Code of Practice. Their recommendations may include ‘broadly everyone is happy', ‘broadly everyone is happy but some want to see minor changes to clauses x, y and z' or even ‘unfortunately no-one likes anything in the Code of Practice!' It is then down to me, to make decisions that I will discuss with my Cabinet colleagues. With their agreement, I will then announce my decision on the Code of Practice.

As required by the Act, a full calendar year must pass before the Code of Practice comes into force. Operators have the option of adopting the Code of Practice earlier if they are able to or wish.

My announcement later this year is not the end of the story, as there is provision within the Act for operators to apply for exemptions to a clause or clauses within the Code of Practice. There are questions about this in the current consultation document. Officials will use the information about exemptions from this consultation to prepare exemption regulations for me to present to Cabinet. It is hoped that the exemption criteria will be in place by April/May 2009.

So, I hope that you will see that there is still work to be done in building this retirement village and for me in building the regulatory framework in which you can enjoy your retirement, living in appropriate homes, with facilities close by, in what is to me, a most beautiful part of New Zealand!

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