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

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news