NCEA has always had literacy and numeracy requirements to gain the final qualification. The difference now is that the assessment of these requirements have changed whereas before if you did okay in one of the liberal arts and Maths or Science you probably had the requirements without really trying. I personally like the fact that it is a little more rigorous now.
Aside from the fact that he hasn’t met his obligations to his tenant, by the sounds of it, what sort of processes were followed in the failed development of the section? Sounds bizarre.