Taskforce wants the Gib crisis sorted
Construction stalls due to lack of supply
Minister for Building and Construction Megan Woods has set up a ministerial taskforce to address plasterboard shortages. The taskforce includes key construction, building consent and supply chain experts.
“The Government is committed to supporting the building sector to deliver the homes and buildings that New Zealand needs,” Woods said.
“That’s why my top priority is to ensure builders, from big companies to single tradies have the materials they need to do their job with confidence”.
Woods said she was concerned the trademarks Fletcher Building had placed on certain colours of plasterboard might be impeding the importation of alternative plasterboards.
“That’s why I have written to Fletcher Building to seek confirmation that they will work with the sector and not take action with regard to their trademark protections, to further free up supply.”
The taskforce will look at whether regulation of alternative plasterboard products is needed, ways to streamline the use of products untested in the market, new distribution models, advise on consent approaches and act as a forum for related supply chain concerns.
“The taskforce has a very clear aim, to increase sector productivity as quickly as possible, and to remove any unnecessary barriers, including around certification, to facilitate the use of different types of plasterboard. I will convene our first meeting next week,” Woods said.
It is made up of Naylor Love chief executive Rick Heard, Registered
Master Builders Association of New Zealand chief executive Dave Kelly, Simplicity Living managing director Shane Brealey, The Warehouse founder and chair of the Tindall Foundation Sir Stephen Tindall, an LGNZ representative and 2degrees founder Tex Edwards.
The Commerce Commission’s initial report on the factors affecting competition for key building materials and how that affects housing costs will be out next month, just as pressure on the sector mounts due to the Gib supply crisis.
One construction sector chief wants the Government to axe Fletcher Building’s 94 per cent hold on
the plasterboard market, saying it was wrong that it ever got to that.
Brealey said Winstone Wallboards should never have become so dominant.
“There was a playing down of the crisis and how long it might last,” he said after Friday’s meeting between critics and Fletcher chiefs.
“I would love to think that they are right and that this will all blow over in two to three months’ time but I just can’t see it.”
Winstone had under-estimated the amount of damage the crisis had caused, he said.
What New Zealand needed was a long-term solution where the country was not so beholden to Winstone, with 94 per cent of its plasterboard market, Brealey said.
Gib’s pricing had come under less attack than its shortage.
“Gib will lose a hell of a lot of loyalty,” predicted Herd.
“Smaller companies who aren’t as resourceful as Naylor Love will go under because of it. Absolutely they will. They won’t be able to get Gib. Jobs will run late,” he said.
The commission said that in July it will publish a draft report that sets out its preliminary findings about competition for residential building supplies.
Anna Rawlings, commission chairwoman, said house building was an important part of our building and construction industry and vital to ensuring housing supply can meet demand.
“Various reports on the industry have raised concerns at rising building costs and this study allows us to consider the industry’s approach to key building supplies and how effectively competition is working within the industry, and where it may be able to be improved,” Rawlings said. — NZ Herald, RNZ