Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Better long term planning needed for construction sector

Better long term planning needed for construction sector

Media Statement
7 February 2013

"The announcement that Mainzeal has been placed into receivership has taken many in the construction industry by surprise but should not be considered unexpected given New Zealand’s boom-bust construction market, says Stephen Selwood," Chief Executive of New Zealand Council for Infrastructure Development.

"While Mainzeal is facing its own unique set of circumstances as a company there is no doubt that the boom-bust nature of New Zealand's construction market will have been a significant contributing factor to its current situation," Selwood says.

"The sad irony is that the sector is about to enter into a boom cycle, once again, following three years of retrenchment.

"With the Wiri prison now under construction, the ten catalyst projects and the hospital in Christchurch under development and with the slow rebirth of commercial development in Auckland, prospects for the 400 Mainzeal staff and subcontractors look reasonably promising.

"Frustratingly, the emergence of a boom cycle will, once again, create enormous pressure across the industry for human resources and capital equipment. Almost inevitably this will lead to price increases that could have been avoided through better long term planning of New Zealand's major project pipeline.

"The industry has consistently pressed central and local government to work more closely with the sector to develop a long term approach to planning, consenting, and funding public projects.

"We are looking forward to the release by Treasury of the Government's Ten Year Capital Intentions Plan later this year.

"Greater certainty about the project pipeline will incentivise the industry to invest in productive capacity and improve value for money - a potential win win for both the industry, its people, and for the public sector," Selwood says.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news