Parliament

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

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election