New Zealand Listener

Boom or bust

The eight-storey Parkwood apartment building in Newmarket, Auckland, underwent expensive remedial work in 2009 after it started leaking.

It’s 2024 and the government is listening to the building industry: it plans to cut red tape. Building and Construction Minister Chris Penk has announced the government’s intention to cut red tape, increase competition and lower building costs. And that’s quite separate from its parliamentary cousin, the Fast-track Approvals Bill, which also intends to cut that confounding red tape, with the aim of enabling faster growth in sectors such as mining and agriculture.

First, however, the Building Act 2004 will be amended to allow the use of building products that have been through a certification process overseas or are from so-called “trusted overseas jurisdictions”. The aim is to reduce time and money otherwise involved in verifying the suitability of the products or having them consented. Some of these changes respond to recommendations made by the Commerce Commission about removing impediments to product substitution and variations.

“Cutting red tape and building infrastructure are part of the government’s wider plan to rebuild the economy,” said Penk in April when he announced the Building Act changes. More changes have since been publicised, focused on making some building possible without a new consent, considering remote building inspections and rolling back insulation standards.

“All these measures have the aim of “making it easier and cheaper to build homes”.

All these measures are aimed at “making it easier and cheaper to build homes in order to rebuild the economy and get Kiwis into their homes quicker”. Similar words were said by similar ministers decades ago – words that resulted in financial disaster for hundreds of thousands of New Zealanders.

LESSONS FROM THE PAST

The building industry first found its voice as a lobby in 1980, resulting in the Robert Muldoon government agreeing to an industry review. There was a groundswell against perceived red tape or over-regulation which, according to a 1990 Buildingwas having serious cost impacts in the construction industry.

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