Hon Chris Penk
Minister for Building and Construction

Just-passed legislation is expected to put up to 250,000 more building products on shelves this year alone - giving Kiwis building and renovating their homes more choice to fit their budgets, Building and Construction Minister Chris Penk says.

“Making it easier and more affordable to build in New Zealand is a central pillar in this Government’s Going for Growth plan to get the economy back on track.

“That’s why we have made changes to the Building Act to reduce barriers for using high-quality building products imported from overseas.

“The status quo is unacceptable. Construction costs have risen a staggering 40 percent since 2019, spurred on by a lack of competition in the building system. Bringing hundreds of thousands of new options into the market will put downward pressure on prices.

“Builders and designers have long called for this change, so they can get the best deals on goods and materials countries like Australia are already benefiting from.

“We expect that from July, more than 12,000 essential products - including plasterboard, cladding, and insulation - will be cleared for use through cited standards in the new Building Product Specifications pathway. Building Consent Authorities must accept them, so long as the products are used as intended.

“Increasing options on the market is critically important for improving supply chain resilience. Giving our tradespeople alternatives to turn to during product shortages will allow projects to continue without delays.

“Local manufacturers will also benefit from being able to test their products against internationally accepted standards, opening the door to valuable export markets.

“Work is already underway to establish robust regulations for recognising new products and standards, ensuring only top-quality materials enter the market. This includes targeted consultation with industry leaders and local government.”

Note:

• Under the new system:
  • The Minister for Building and Construction will be able to issue a notice that recognises groups of overseas product standards and standards certification schemes for use in New Zealand.
• A new building product specifications pathway will be introduced to streamline the process of citing international product standards that can be used with acceptable solutions or verification methods to establish compliance with the building code.
• Building Consent Authorities will be required to accept building products and methods that have been certified by an overseas product certification scheme and recognised by the Ministry of Business, Innovation and Employment.
• The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill responds to recommendations from the Commerce Commission’s 2022 market study into residential building supplies, which highlighted issues with the current lack of competition for the supply and acquisition of building products.

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