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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news