Residential building materials permitted in trusted overseas markets will be automatically approved in New Zealand under a legislative “shake up” of the Building Act.
Building and Construction Minister Chris Penk announced the regulatory reform with Prime Minister Christopher Luxon in Upper Hutt on Thursday morning.
He said the cost of building a home had climbed significantly in the past few years, partly because it was difficult to access alternative building products when supplies ran short.
The approval process for a new material could take up to two years and was blocking competitors from entering the market.
“This red tape entrenches the use of well-known products, which lowers competition, increases the risk of supply chain disruptions like in the recent GIB shortage, and ultimately makes it more expensive to build anything,” Penk said.
The Government will amend the Building Act to recognise product standards used in some overseas jurisdictions and require consent authorities to accept these alternatives.
One example of an overseas certification scheme is Australia’s WaterMark which assures plumbing products are safe and reliable. It alone could add 200,000 products to NZ.
Penk said this was a “major shakeup” that would drive down costs without compromising on standards. The amendments are hoped to be passed before the end of the year.
These changes are partly in response to a Commerce Commission market study into residential building supplies which the previous Government asked for. It recommended making it easier to get building supplies approved in New Zealand and allow for more product substitutions on construction sites.
Penk said the new regulatory scheme may also make it easier for NZ made products to get international approval as they will be benchmarked against approved overseas alternatives.
Some overseas jurisdictions have similar standards but different seismic or climate conditions which may mean some specific products are not suitable in the local market.
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