KiwiBuild questioned after construction sector issues

National’s Building and Construction spokesman claims the Government’s KiwiBuild plan could be threatened by construction sector problems.

But a spokesperson for Housing Minister Phil Twyford says the issues were affecting high-rise or commercial building rather than residential construction.

Andrew Bayly said he had concerns about KiwiBuild’s chances after problems in the sector including Ebert Construction’s receivership.

“I hope Mr Twyford actually achieves what he’s going to do with his 100,000 [new home] target because I think that’s good for New Zealand but my view is he’s going to really struggle to achieve that because I doubt he’s put in place the building blocks to make sure you can get to the stage where you are building an additional 10,000 houses a year,” Bayly said.

Twyford, Infrastructure Minister Shane Jones and Building and Construction Minister Jenny Salesa spoke at the Beehive after a meeting with construction industry representatives. Salesa said Government agencies would be reminded of procurement guidelines on projects to ensure they set a good example.

A spokesperson at Twyford’s office pointed out that issues in the sector were predominantly in the “vertical” or high-rise space, not the lower-rise residential sector.

But Bayly believes such a big housing programme could exacerbate existing construction issues.

“Everyone says we have constraints around builders and people so to overlay that with another 10,000 principally in Auckland, you actually need to change the dynamics . . . I don’t see changes to the consenting arrangements, I don’t hear a whole raft of industry changes to actually make sure we get that real change that does need to occur.”