Govt action to stop building sector collapse urged

Industry leader urges Government to take immediate action to prevent building sector collapse

Comment from Richard Carver, Director, Jennian Homes

“Today’s building consent figures are the lowest since January 1992 with a 26 per cent decrease compared to the previous year to November, yet this continued plummet is no surprise to the industry.

“While interest rate cuts offer temporary relief to homeowners, alone they are not enough to prevent the collapse of New Zealand’s building and construction industry.

“February’s Parliamentary Bill to amend the Resource Management Act will be a good start towards making the building process easier, but a multi-pronged rescue plan needs to be put in place immediately to reverse the deepening crisis in the industry and restore consumer confidence in new home building.

“This should include urgent steps to address access to finance for building companies, potential home buyers and investors, and continued work to free up land for future residential development as quickly as possible.

“The building sector represents approximately $12 billion annual turnover to the New Zealand economy and this number is falling daily as we face this unprecedented downturn. While Jennian’s business is strong, some companies have already folded and as consent numbers continue to fall, others will follow. The impact on the economy, related industries and unemployment figures will be severe and we cannot afford to let this happen.

“Last week in America builders descended on Washington to urge a housing stimulus package as part of America’s economic rebuilding plan. This is a global issue for our sector and we need similar action and leadership in New Zealand.

“Jennian Homes strongly supports the Department of Building and Housing’s proposal to the Minister to increase government infrastructure investment to maintain economic activity and employment and prevent future housing price volatility from labour market shortages. In our view, this investment and other measures to prevent the collapse of the building sector, cannot be approved and implemented soon enough.”

ENDS

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