The Government has announced a major "shakeup" to New Zealand's construction rules, aiming to lower the cost of building new homes.
Construction Minister Chris Penk said the shift will eliminate barriers to the use of overseas building products.
"Our Government has a plan to rebuild the economy to help Kiwis get ahead, and part of that plan includes cutting red tape and building more housing and infrastructure," he said in a statement this morning. "Part of what drives up costs is the amount of red tape.
"For example, it is almost impossible to use new building products in New Zealand without facing huge delays, with some approval pathways taking up to two years before a new product is recognised for use.
"This red tape entrenches the use of well-known products, which lowers competition, increases the risk of supply chain disruptions like in the recent GIB shortage, and ultimately makes it more expensive to build anything."
The Government has announced a major "shakeup" to New Zealand's construction rules, aiming to lower the cost of building new homes. (Source: 1News)
In 2022 the Labour government held crisis talks as builders struggled to access plasterboard products.
The shortage of GIB caused major delays in the construction industry, with builders speaking of their inability to source product and major delays on projects.
In response, the coalition Government plans to make three legislative changes.
The first is to recognise building product standards from "trusted overseas jurisdictions", rather than Kiwi designers or builders needing to verify standards themselves.
The second change will require Building Consent Authorities to "accept the use of products that comply with specific overseas standards that are equivalent to or higher than those in New Zealand". The third change will see building products certified through "reputable certification schemes overseas" approved for use in New Zealand.
"[The changes] will increase the availability of high-quality affordable building products and help lower the cost of building in New Zealand," Penk said.
"This is a major shakeup that will drive down the cost of building without compromising on quality, to make it easier and more affordable for people to build or renovate a home.
"It will also help improve the country's resilience to supply chain disruptions and reduce barriers for Kiwi businesses trying to find alternative approval pathways in New Zealand and export their product overseas."
The new rules will be introduced in the Building (Product Certification) Amendment Bill "later this year". Penk said the Government plans to pass the legislation before the end of the year.
"Cutting red tape and building infrastructure are part of the Government's wider plan to rebuild the economy, which also includes stopping wasteful spending, delivering tax relief, growing skills and strengthening international connections.
"It is only through a strong economy that we can lower the cost of living, lift incomes, and invest in the public services New Zealanders rely on," he said.
The Government teased today's announcement in its 36-point "action plan" released the other day.
"Release draft plan to ease restrictions on building materials from overseas for public consultation" was item number eight on the list.
'Take time to get it right' — Labour
Labour's building and construction spokesperson Arena Williams said her party was also working to make building products cheaper and the market more competitive.
"Our work was focused on breaking the monopoly on products like plasterboard, by introducing new products, tracking volumes and ensuring the right product was being used in the right place," she said.
"I would be interested to see what advice the Government received on how products like plasterboard, which are used in a structurally different way in other countries, would be used here.
"What’s vital when doing anything in this space is taking the time to get it right.
Williams said New Zealand didn't want a repeat of the leaky homes saga.
"We also don’t want to cut innovative New Zealand companies out of the market, like Hamilton start-up SaveBoard made from recycled waste that is a recognised plasterboard substitution in our domestic market. So we will be keeping a close eye on those things.”
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