Last week the Government responded to the Commerce Commission’s market study into residential building supplies, agreeing (or agreeing in principle) to eight of the nine recommendations made by the Commission.
Read the Commerce Commission’s Residential building supplies market study.
Read the Government’s response on Beehive.govt.nz.
These range from introducing competition as an objective to be promoted in the building regulatory system – recommendation one – though to looking into land covenants, exclusive leases, and contractual provisions that have similar effects – recommendation nine.
The Government press release stated that it would “go further than some of the Commission’s recommendations and expand on its existing review of the building consent system. It will also widen its work to ensure alternative building products are more easily used, following last year’s plasterboard shortage”. The exact actions the Government will take are not clear, but there are implications for councils given the nature of the original recommendations – clearer compliance pathways, increasing flexibility in product substitution and variations, a national system to share information about building products and consenting, education and mentoring including more collaboration between BCAs and the promotion of systems.
Based on information in the Government’s press release, we can expect announcement on the next steps for a new or revised building consent system “in the coming months”.
Taituarā representatives are on the Ministry of Business, Innovation and Employment advisory group and the Taituarā Regulations and Bylaws Reference Group maintains oversight of developments in this area.
