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Construction Strategy Group (CSG) Welcomes Sector Accord

Auckland, 14 April 2019 – The Construction Strategy Group (CSG) which represents a broad spectrum of New Zealand’s major construction industry participants today welcomed the Construction Sector Accord (Accord) as it marks a significant opportunity in partnership with the Government to address the complex, systemic challenges facing the sector.

The CSG looks to the Government, as one of New Zealand’s largest procurers of major projects, to lead the way in demonstrating its commitment to the Accord.

Geoff Hunt, Chairman of the CSG and a member of the Accord Development Group, says the key outcome that the Accord is intended to achieve is the enabling of a resilient construction sector ecosystem that delivers lower cost, higher quality more durable buildings and infrastructure. For this to happen the industry needs the certainty of work continuity and margins to invest in training and technology to grow productivity. A 5% lift in productivity would fund one new Waterview Project per year.

“The Accord represents the Government’s willingness to collaborate with industry to transform the sector so it can continue to deliver benefits which all New Zealanders can share and trust such as safe, durable homes, buildings and infrastructure built by a productive, capable and commercially viable sector.

Hunt says in the CSG’s view the Accord is a very positive step that recognises that the industry cannot fix itself and that the procurers are a critical part of the problem and therefore the solution.

“Whether the Accord becomes a ‘game changer’ will be determined by the achievement of shared goals and outcomes in the transformational plan to be agreed with Government together with improving the commercial viability of industry participants as part of a high performing New Zealand construction sector.”

Hunt adds that it is certainly in the interests of both Government and industry to grow capability and capacity as part of fostering a workforce of qualified, competent and skilled people that will also help create more resilient businesses.

“We know that there is a growing bottleneck in the sector because of the short-fall of tens of thousands of workers needed over the next five years. If this is not to be addressed through a considerable increase in immigration, the development of training of those entering the workforce will have to be accelerated at an unprecedented pace. This can only be done through partnership between the construction industry and Government.”

Hunt concludes that from an industry perspective the CSG, comprising individuals with considerable skin in the game, will continue to focus on the levers which will deliver the largest future improvements in industry performance.

“CSG will continue to collaborate with Government to address the important issues facing the sector, fulfilling the important role that industry originally set it up to do in 2012.”

ENDS

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