Fletcher Brands Being Targeted by Government Building Costs Inquiry

Top building supplies company Fletcher’s could be in the gun as the Government announces an inquiry into the cost of building materials.

Housing Minister, Nick Smith, speaking on “The Nation” said there was significant concern that items “the likes Batts, likes of Gib and concrete” were more expensive than what they were in Australia.

Batts and Gib are Fletcher’s brands and the company is a major concrete supplier.

But Mr Smith denied the Government was singling Fletcher’s out.

“We need in a very thorough way not on the basis of rumour or speculation, on the basis of really good analysis and information, to have a hard look at how the building materials' market is working and to ensure that there are the competitive pressures that are there,” 

“In terms of tariffs and those things, you know New Zealand has a pretty liberal regime for bringing products in, but are there other barriers? 

For instance, we have a Body Standards New Zealand that sets the standard, and sometimes I'm concerned that the industry groups have too much influence over those standards, that are then effectively adopted by councils and do not allow product from overseas to be able to give Kiwis real choice about those products.”

Mr Smith said his inquiry was going to look what regulatory tools that the government had at its fingertips, that could try and get building materials costs more reasonable for the industry. 

“We want to see a substantial lift in the building pace, “he said.

“We want to get the costs more affordable.” 

But he said it was not going after any particular company.

“ Yes Fletchers are a significant company in New Zealand, but across the board I don’t care whether it's the pipes, the PVC, whether it's the Batts, it's the component parts that I want to be satisfied that New Zealand builders are able to get access to fair price.

“I also think we have to ask questions around some of the businesses that go on in terms of rebates and discounts that go on within the industry.”

ENDS

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