Parliament

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

 

In Principle Agreement In Construction Review

In Principle Agreement In Construction Industry Review

Cabinet has agreed in principle to a set of recommendations aimed at redressing the imbalance of power between contracting parties in the construction industry, Associate Commerce Minister Laila Harré announced today.

Speaking at the Subcontractors Federation Annual General Meeting, Laila Harré said the government broadly agrees with legislative proposals put forward by an industry working party working on the construction industry review.

"The working party has strongly recommended that New Zealand adopt a fast-track adjudication process along the lines of legislation recently enacted in New South Wales and the United Kingdom," she said.

The new legislation will outlaw pay-if-paid and pay-when-paid clauses that have created cashflow blockages, and forced many subcontractors into bankruptcy.

"The problem is now at the point where even longstanding, large companies are being affected," Laila Harré said.

"These features prey on the imbalance of power between contracting parties and are at the heart of the current problems in the construction industry."

The present situation was brought about by the repeal of the Statutory Liens Act in 1986. The then government was not able to find common ground between the different industry sectors, leaving it in a kind of legal vacuum.

"The government also intends to consider the use of security of interests over land and chattels, including in the residential sector." Laila Harré said.

"This could ensure that money is coming in at the top of the contractual chain so that it can filter down to those at a lower level."

The new scheme will allow subcontractors to stop work if they haven not been paid, and it is envisaged that adjudicators will have a high level of flexibility to ensure all parties are treated fairly.

"Further work is being done on the finer details of the proposals I have announced. A limited consultation process will be carried out over the next six weeks, after which a final paper will be put to cabinet."

Laila Harré said if the legislation gains cross-party support in Parliament it could be before the house early next year.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Raising Corporate Taxes Has Become A Hot New Political Cause

Surprisingly, “raising taxes” has become a very fashionable political idea in 2021. That’s right. After decades of being seen (at best) as a necessary evil, higher corporate taxes are now being treated as the Great Good Thing that will revive the US economy, re-distribute wealth productively, help to build neglected and decaying public infrastructure, fund public health, address social inequality, restore a sense of community and generally make everyone feel better about the society in which they live... More>>

 

Government: The Duke Of Edinburgh

9 April 2021 Prime Minister Jacinda Ardern today expressed New Zealand’s sorrow at the death of His Royal Highness The Prince Philip, Duke of Edinburgh. “Our thoughts are with Her Majesty The Queen at this profoundly sad time. On behalf of the New ... More>>

ALSO:

Government: Delivers Next Phase Of Climate Action

The Government is delivering on a key election commitment to tackle climate change, by banning new low and medium temperature coal-fired boilers and partnering with the private sector to help it transition away from fossil fuels. This is the first ... More>>

Government: Independent Experts To Advise On Post-Vaccination Future

The Government is acting to ensure decisions on responding to the next phase of the COVID-19 pandemic are informed by the best available scientific evidence and strategic public health advice. “New Zealand has worked towards an elimination ... More>>

Health: Drug-Testing Law To Be Made Permanent

Interim legislation that is already proving to keep people safer from drugs will be made permanent, Health Minister Andrew Little says. More>>

World Travel: New Zealand Temporarily Suspending Travel From India - PM Jacinda Ardern

Travel into New Zealand from India - including for New Zealand citizens and residents - is being temporarily suspended because of high numbers of Covid-19 cases. More>>

Finance: Crown Accounts Again Better Than Forecast

Hon Grant Robertson Minister of Finance The economic recovery from COVID-19 continues to be reflected in the Government’s books, which are again better than expected. The Crown accounts for the eight months to the end of February 2021 showed both OBEGAL ... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels