KEY POINTS:
Plans to strip regulatory powers from the Real Estate Institute has provoked a war of words between its senior officials and the Government.
Letters released to the Herald on Sunday under the Official Information Act include exchanges between institute chief executive Christine Le Cren, its national president Murray Cleland and Associate Minister of Justice Clayton Cosgrove.
The associate minister heads efforts to introduce the Real Estate Agents Bill, which the Government wants to replace the 1976 Real Estate Agents Act before the election.
The bill would remove the institute's regulatory powers and create a Real Estate Agents Authority to handle licensing, complaints, disciplinary and enforcement processes and to set industry standards and give consumer advice.
It would create a disciplinary process administered by the Ministry of Justice and end compulsory membership of the institute for agents.
Tensions between the institute and Cosgrove appear to have escalated following a meeting of the institute's Canterbury and Westland branch.
In a letter to Cosgrove, a branch member wrote how Le Cren said: "We have met the Associate Minister of Justice Clayton Cosgrove, or should I say the Hon Clayton Cosgrove... well that's what they call him." The whistleblower felt Le Cren and Cleland "obviously felt very threatened by possible changes".
In a letter to Cosgrove, Le Cren said the comment was "not exactly as I recall it and has been taken badly out of context".
She told the minister the comment was "an attempt at light humour and was never intended to imply any criticism of you. I unreservedly apologise for any hurt it may have caused you".
In another letter, 10 days later, Le Cren accused Cosgrove of telling the media the institute had a "double agenda" and said "we remain willing to engage with you constructively, even as you continue to attack us".
Cosgrove replied, saying the institute hadn't met community expectations for independence, transparency, openness or accountability.
On the same day Cleland wrote to Cosgrove, claiming the minister was making "inaccurate or misleading comments about the reforms" and also accused him of using inaccurate figures.
Cosgrove, who said the figures came from the institute's website, told the Herald on Sunday he was initially surprised by his treatment. "I was being pilloried because I got stuck in."
The institute took "some time to come around" to the reforms, but now supported the bill, he said.
Cleland said the institute's aim was to ensure the new act was workable for the industry and consumers.
"We have always wanted the change and are pleased it appears to be pro- gressing," he said.
