Hon Chris Penk
Minister for Building and Construction

A major shake-up of building products which will make it easier and more affordable to build is on the way, Building and Construction Minister Chris Penk says.

“Today we have introduced legislation that will improve access to a wider variety of quality building products from overseas, giving Kiwis more choice and injecting some competition into the market.

“We know that our building system lacks competition and that it is too expensive to build in New Zealand. The building supply chain is dominated by a few big companies which makes us vulnerable to price increases, supply chain disruption and shortages – as witnessed with the GIB crisis in 2022.

“This lack of competition, even when it’s business-as-usual, means more expensive building products and less innovative and efficient building processes. This means that Kiwis pay an exorbitant cost for construction and wait a long time for building work. Building costs have increased by more than 40 per cent since 2019 and building productivity has not materially improved since 1985.

“It is unacceptable that it is around 50 per cent more expensive to build a standalone home in New Zealand than Australia.

“That’s why we are removing red tape and making it easier to import high quality building products. Existing producers and suppliers will find themselves in a more competitive marketplace, which, in time should make a greater range of products available and drive down costs.

“Today, the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill was introduced to Parliament. The Bill introduces changes to the Building Act which will reduce barriers for using quality overseas building products in New Zealand.

“Building Consent Authorities will still need to assess proposed building work to ensure products are being used for their stated purpose and that the finished product of the building work complies with the Building Code to ensure our homes and buildings are healthy, safe and durable.

“These changes are part of a comprehensive package of reforms designed to make building in New Zealand easier and more affordable. Other changes include streamlining building consent changes by making it easier for minor variations and customisation to be made without the need for a new consent and exempting projects under $65,000 from paying the building levy.

“Once the changes come into effect, Kiwis will be able to tap into the global building product market to use the products they want and pay a fair price for them.

“The first reading of the Bill has been set down for later this month, after which it will be referred to the select committee.”

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