Building and Construction Minister Chris Penk announced legislation is on the way to make building more affordable and provide access to a wider variety of building products in New Zealand.

Penk said, “Today we have introduced legislation that will improve access to a wider variety of quality building products from overseas, giving Kiwis more choice and injecting some competition into the market.”

He said the New Zealand building system lacks competition, with the building supply chain dominated by a few major companies.

This  made the country vulnerable to price increases, supply chain disruption, and shortages, as seen with the GIB crisis in 2022.

Penk said, “Building costs have increased by more than 40 per cent since 2019, and building productivity has not materially improved since 1985. It is unacceptable that it is around 50 per cent more expensive to build a standalone home in New Zealand than in Australia.”

To address these issues, the government is introducing the Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill.

The new law aims to reduce red tape and make it easier to import high-quality building products.

Existing suppliers will face increased competition, potentially driving down costs and increasing product variety.

The Bill will still require Building Consent Authorities to assess proposed work to ensure compliance with the Building Code.

“This is part of a comprehensive package of reforms designed to make building in New Zealand easier and more affordable,” Penk said. The reforms include streamlining building consent changes and exempting projects under $65,000 from the building levy.

The first reading of the Bill is scheduled for later this month, after which it will be referred to the select committee.