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

 


BUDGET: Imported building products get leg-up with duty cuts

BUDGET: Imported building products get leg-up with duty cuts

By Pattrick Smellie

May 15 (BusinessDesk) – Concerns over the high cost of building materials see the government temporarily cutting tariffs and anti-dumping duties on imported building products to zero, as part of efforts to improve housing affordability.

The duty cuts will include products such as plasterboard, reinforcing steel bar and wire nails, and tariffs will fall to zero for products such as roofing, cladding, insulation, paints, electrical and plumbing and fittings. Headline tariff and anti-dumping duty rates sit at around 5 percent for most of the products involved.

The changes appear likely to have their most marked effect on the country’s largest listed company, Fletcher Building, and on Carter Holt Harvey’s building supplies arm. Others likely to be affected are the Pacific Steel roofing business, recently acquired by Australian steelmaker Bluescope from Fletcher Building.

The cuts come as the Commerce Commission continues a long-running investigation into allegations of anti-competitive behaviour in the building supplies market, and the failure to date by multi-national plasterboard manufacturer Knauf to make inroads into the plasterboard market.

Knauf was chosen as a supplier to the Christchurch rebuild to provide competition in the plasterboard market, which is dominated by the Fletcher Building-owned Tasman brand.

Housing and Commerce Ministers Nick Smith and Craig Foss announced the changes in today’s Budget, saying they should reduce the cost of building an average house by about $3,500 at a cost to the government in lost duties and tariffs of around $27.8 million over five years.

Housing affordability is a pressing economic and political issue, especially in Auckland, where demand is outstripping available housing stock and in Christchurch, where the rebuild from the earthquakes of 2010 and 2011 is taking longer than expected.

The three year suspension of anti-dumping duties on plasterboard, reinforcing steel bar and wire nails will be passed under urgency as part of the Budget, effective from June 1.

“A bounded public interest test will be introduced into the Dumping and Countervailing Duties Act 1988 following a public discussion document and consultation on the detail of the amendments,” the Ministers said in a statement.

A zero concessionary tariff will apply to residential construction materials from July 1, to be reviewed in five years’ time and will cover around 90 percent of the materials used in standard house construction, including roofing, cladding, framing, partitioning, windows, doors, insulation, plumbing and electrical fittings, kitchen cabinets and paint.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news