The clarification comes after the industry body called for a Parliamentary Inquiry into the decision-making processes of New South Wales Fair Trading in the wake of its "gross negligence" involving trust account audits, following the state's largest fraud case.

REINSW CEO Tim McKibbin says the constant reference to the property industry seeking self-regulation in the Minister’s press releases is not only incorrect, but it also demonstrates a "desperate clawing for relevance and an attempt to divert attention away from Fair Trading, who is facing a barrage of consumer protection failures".

“Let’s once again be crystal clear - the industry does not seek self-regulation, the industry seeks a cooperative and constructive relationship with a regulatory authority who has competencies and experience in the property industry,” Mr McKibbin told WILLIAMS MEDIA.

In an explosive letter to REINSW President Leanne Pilkington, Mr Kean said the basis on which the REINSW had called for a parliamentary inquiry was false, and that "the NSW government will not be supporting an inquiry".

Mr McKibbin says the decision of the Minister to announce publicly that there will be no Parliamentary Inquiry with less than one day’s consideration is alarming. 

“Attempting to assign blame to the industry while a pandemic of incompetence flushes at Fair Trading strongly suggests that Government is not acting like a model citizen,” Mr McKibbin said. 

“The first step to resolving any problem is an acknowledgement of, and a detailed understanding of the issues. Pretending it doesn’t exist and blaming others, only delays implementation of the requisite remedial activities. REINSW respectively suggests that in this case, the sunshine is the best disinfectant.  

“Accordingly, publicly exposing the systemic failure of Fair Trading’s ability to understand and adequately support the property services industry is an important step forward.  Misplaced confidence and ignorance are a dangerous combination and a recipe for harm as in this case," Mr McKibbin said. 

Cutting red tape

Mr McKibbin told WILLIAMS MEDIA there has been a litany of poor decisions associated with agency practice by Fair Trading after they made the decision to remove the obligation for real estate agents to lodge their annual trust account audits in what it claimed removed “red tape”.

“Fair Trading has removed what they believe is “red tape”. Unfortunately, their “red tape” are consumer protection procedures and processes. The cost of these decisions can be counted in the millions of dollars, and continue today to expose consumers to unnecessary risk.

“I implore the NSW Government to urgently commission a Parliamentary Inquiry into Fair Trading’s policy and decision-making processes. Fair Trading continue to make decisions regarding the property market, property services industry and consumer with no subject matter knowledge, competencies or experience," Mr McKibbin said.

In his letter, Mr Kean says people could infer from Mr McKibbin’s statements that the institute does not understand the legal obligations of its members or was trying to deliberately mislead the public.

“A finding of either of these things would raise serious questions over whether the REINSW is a fit and proper person to provide continuing professional development,” Mr Kean said in his letter.

“Accordingly, I ask that you please provide me with an explanation of these inaccuracies within 14 days. Setting aside the obvious error that Fair Trading did not amend the law, the NSW Parliament did, the claim that the amendment referred to ‘removed all the protection of an independent audit’ is incorrect – audits are still required and auditors are required to lodge reports where they identify a financial irregularity.”

Mr McKibbin told WILLIAMS MEDIA he can't understand how Mr Kean can make that allegation.

"Firstly it's unsubstantiated, secondly we're calling for a Parliamentary Inquiry, now it doesn't get much more transparent than a Parliamentary Inquiry. I invite the Minister and Premier to convene a Parliamentary Inquiry and I ask them to shed as much light as possible on the industry and the ability Fair Trading have to regulate the industry.

"We invite all the scrutiny, we invite any and all enquiries into the industry and into the institute's calls for reform, and for the ability to work constructively and cooperatively with the industry, which they won't," Mr McKibbin said.

"I can't see this being resolved any time soon which is disappointing and I have to say, it is not good government. The electorate will no doubt make its decisions in relation to the Minister's ability to lead this department and influence policy."

Related reading:

Rift between REINSW and Fair Trading deepens after call for Parliamentary Inquiry

REINSW CEO blasts Fair Trading, calls for dedicated property minister

REINSW resigns from Real Estate Reference Group