Relief for ‘crippling’ housing material drought
Govt rule change eases fears of ‘profitless boom’ for Bay builders
Relief from a drought of building materials that has “crippled” the Bay construction sector’s post-lockdown recovery may be in sight after a Government rule change.
But builders say they will still be playing “catch-up” and delays may continue as some supply chains remain backlogged with manufacturing hub Auckland in lockdown as the rest of New Zealand moves to Covid-19 alert level 2.
Bay of Plenty builders spoken to by NZME in recent days said some building sites were at a standstill and homebuyers may bear the brunt of delays and material costs.
One builder said a lack of materials left the Bay of Plenty with a “profitless boom” that could be fatal for some businesses.
GIB, steel framing, roofing, timber, wall linings and fixings are in short supply and by Friday those products were expected to run out completely.
The Government has previously said only essential products could be manufactured at level 4, and having too many businesses operating increased the risk of Covid-19 spread.
The industry had been lobbying the Ministry of Business Innovation and Employment for exemptions to Auckland manufacturers who supply 90 per cent of the building products needed in the regions.
Yesterday, Minister of Finance Grant Robertson said the Government
would allow some building product manufacturing to take place in Auckland in level 4 to support continued residential construction in New Zealand.
Robertson said the “constrained availability” of building products was an issue for regions in level 2.
Changes to the Health Order would be made to allow the manufacturer of plasterboard, gypsum plaster, coating roofing steel and insulation in Auckland under level 4, he said.
Minister for Building and Construction Poto Williams said there was the “greatest concern” about supply for these products.
“The products must be a critical component of residential construction, there is limited supply and manufacturers must have health and safety measures in place to minimise the risk of Covid-19 transmission.”
Williams said the change would help ease some of the building supplies constraints and support the ongoing building of much-needed houses.
Registered Master Builders vicepresident Johnny Calley, of Calley Homes in Tauranga, said earlier this week “large quantities of materials had already run out and if they haven’t run out yet they will by the end of the week”.
“We have projects directly affected by the shortages at a standstill.”
He said consumers would be impacted as financially pressed builders passed on material costs through their contracts.
The scenario could be “fatal” to businesses that could not absorb the costs and other issues like the skilled labour shortage, which meant the industry was in a “profitless boom”, he said.
Calley told the Bay of Plenty Times