New Zealand experienced a high-profile 'Gib crisis' in 2022 when the country's main provider, Fletcher Building, struggled to keep up with demand. Photo: Bill McKay
DIYers and builders might soon have more products to choose from, but the cost savings for renovators and builders could be small - and there are still questions councils need answered.
This week, the government revealed its building product specifications document, which will list international standards for products like plasterboard, cladding, windows and external doors.
The aim of the change is to allow more overseas building materials into New Zealand's construction sector.
Building and Construction Minister Chris Penk said the products had been given "the green light" to end "costly monopolies".
He cited plasterboard, which he said was among the most expensive plasterboard in the world.
New Zealand experienced a high-profile 'Gib crisis' in 2022 when the country's main provider, Fletcher Building, struggled to keep up with demand.
Julian Leys, chief executive of the Building Industry Federation, said it was not yet clear what criteria would be used to assess how overseas certification of products aligned with New Zealand's building code.
"We know there are not enough skilled people with standards knowledge to do the assessment. Where is MBIE going to find these people?"
Provided the systems worked as they should, he said there should be a wider range of items for architects to choose from and for builders and DIYers when they went to Bunnings or Placemakers.
"I would hope the impact over time would be a reduction in price. If you have ten types of construction glue or ten types of plasterboard that should hopefully have an impact on price."
He said building products would be about 15 to 20 percent of a building project's cost. "It might mean a few thousand dollars saved … probably up to that. But every dollar counts."
But he said it could take a year or two before that impact was seen.
Auckland University of Technology professor John Tookey agreed it should mean new products on shelves.
He said there was also a risk that product could be "dumped" in New Zealand by overseas suppliers, but it was unlikely that they would be picked up by the big-name retailers.
"In terms of cost savings there may be a little bit but I wouldn't necessarily be looking at or expecting there to be a wholesale reduction in unit prices. That's not how these things work.
"There will be opportunities for stockists to make super normal profits. If you know a sheet of Gib board costs, say, $40 a sheet, why would you turn around and charge $15 a sheet [for other plasterboard products]?"
He said prices might drop a bit but stockists would probably still "make good money" out of each transaction.
"You might get some work done a little bit cheaper but the biggest single player at the moment is the cost of labour and that's not going to change."
It could also be hard to get ongoing technical support for products that were brought in from overseas, he said. "If it gets shown to be defective long-term, then what?"
Simplicity chief economist Shamubeel Eaqub said that was the question that would be on councils' minds.
"It's hard not to support this movement because we have a problem with the range of products and cost of products. It's very welcome that we are doing this.
"But we want to be careful to make sure we do it right because we have had bad experiences in the past."
He said other countries had insurance in place so that even if a builder was gone, or the building supplier was no longer in business, the consumer had a back stop.
There would need to be clarity about what liability would lie with councils, he said. "Councils are still on the hook for leaky buildings, which has cost us billions. Local authorities might still be a hindrance to uptake. Just saying this product is ok doesn't mean consenting authorities will approve it unless they are confident they won't be liable for any problems that arise."
Jeff Fahrensohn, field operations manager, building consents, at Auckland Council said he welcomed the release of the new framework.
"Keeping in mind that 90 percent of the products used in New Zealand today are imported, we will still require evidence of compliance as part of the building consent process. Later this year, further regulatory changes are expected, including the publication of approved product lists and recognition of overseas certification schemes that can be relied upon as meeting Building Code requirements.
"Council supports this initiative as a way to enhance competition, streamline approvals and help reduce building costs, while ensuring building safety and performance remain uncompromised."
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