Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Duties and tariffs on building products removed

Duties and tariffs on building products removed


Duties on plasterboard, reinforcing steel bar and wire nails and tariffs on building products like roofing, cladding, insulation, paints, electrical and plumbing fittings will be removed temporarily to increase competition and improve housing affordability.

“Reducing the costs of building materials is an important part of the Government’s programme to improve housing affordability,” Housing Minister
Dr Nick Smith says.

“Removing these duties and tariffs will increase competition and reduce costs, with an expected saving of around $3,500 for the construction of a standard New Zealand home.”

Commerce Minister Craig Foss says New Zealand is a small market for construction materials with limited competition for some products.

“Reducing the barriers to competition ensures we have a more competitive market. This reform will reduce costs for residential building construction with positive spillovers for commercial and industrial building,” Mr Foss says.

The three-year suspension of anti-dumping duties on plasterboard, wire nails and reinforcing steel bar will be implemented by an amendment bill to be passed under urgency as part of Budget 2014. It will take effect from 1 June.

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.

From July this year, a zero concessionary tariff will be introduced on residential construction materials. It will be reviewed after five years.

The zero concessionary tariff will cover around 90 per cent of the materials used in a standard house construction. It will include roofing, cladding, framing, partitioning, windows, doors, insulation, plumbing and electrical fittings, kitchen cabinets and paints.

The regulations to implement the concessionary tariff will apply to thousands of specific products and will be finalised in consultation with industry to come into effect in July this year.

“The building materials market is growing rapidly following the Christchurch earthquakes and with the increase in Auckland residential construction,” Mr Foss says.

“Imported building materials will need to meet our building standards. I am also confident our building product manufacturers can adapt and innovate to match up to the international competition.”

The reduction in duties and tariffs from this initiative will reduce Crown revenue by $27.8 million over five years and has been provided for in Budget 2014.

The savings to the residential construction industry are considerably larger at approximately $75 million a year because the major benefits flow from increased competition and lower building material prices.

“The decision to remove these duties and tariffs comes from the work of the Productivity Commission into housing affordability and the residential construction sector market study by the Ministry of Business, Innovation and Employment,” Dr Smith says.

“Further work is also being done on standards and regulations to increase competition and reduce the price of New Zealand building materials.

“Reducing building material costs will complement our wider programme to improve housing affordability which focuses on freeing up new land for development, improving sector productivity and reducing compliance costs.

“The combined effects of these measures will make a lasting difference to affordability and see more New Zealanders realise the dream of owning their own home,” Dr Smith says.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TV3 Videos: Key's Flip-Flop Over Whale Oil Texts | Slater
Reaction: Greens | More
Dim-Post Link: The Very Odd Slightly Left Of Centre

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel.

Ludicrously, the public has been given exactly one day to make submissions on these major infringements of their civil liberties. Despite Finlayson’s misleading signals on RNZ that these are only stopgaps until next year’s full review of our security laws, the measures in question will not, in fact, expire until 2018.

Why the insane rush? Good question. More>>

 

Parliament Today:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news