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.”