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


Import tariffs on building materials lifted from 1 July

Hon Dr Nick Smith
Minister of Housing

Hon Craig Foss
Minister of Commerce

30 June 2014
Media Statement

Import tariffs on building materials lifted from 1 July

Import tariffs on a range of building products will be temporarily suspended from tomorrow – a measure which is expected to reduce housing costs and increase competition in the residential construction sector, Housing Minister Dr Nick Smith and Commerce Minister Craig Foss announced this afternoon.

“The building materials covered by the tariff suspension comprise about 90 per cent of the cost of the material in an average new house. Currently, these materials attract tariffs and duties that add an estimated $3500 to the cost of a new home. These will be cut to zero per cent tomorrow for at least the next five years,” Dr Nick Smith says.

“The scheme includes a comprehensive list of materials such as roofing, cladding, framing, windows, doors, insulation, plumbing and electrical components, fixed cabinetry, paint and builders’ hardware and fixings,” Dr Smith says.

“New Zealand is a small market for building materials. While we would prefer as much content as possible is locally manufactured, we need the competitive pressure of imported products to ensure we are getting best value for money,” Mr Foss says.

“It is through competition and choice for consumers that we keep costs down.”

The tariff suspension comes off the back of the Budget 2014 initiative to temporarily remove anti-dumping duties for building materials, for which legislation was passed under Budget urgency in May. The temporary suspension of tariffs on building materials will reduce Crown revenue by $5.5 million each year, which was provided for in Budget 2014.

“Suspending import tariffs on building materials is consistent with this Government’s strong public commitment to address housing affordability, particularly given the need for building materials for the Canterbury rebuild and increased construction activity across the country,” Dr Smith says.

“There is no single magical solution to improving housing affordability. We are freeing up land supply, reining in development contributions, cutting compliance costs and investing in skills and productivity in the construction sector. It is about making a whole lot of changes like removing tariffs and duties that aggregate together to make homes more affordable.”

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news