On 31 August 2022, Property Council submitted on the Commerce Commission’s Residential Building Supplies Market Study: Preliminary Findings and Draft Report.
Why this matters to our members
Competition in New Zealand’s residential building supplies market plays an important role in unlocking more affordable homes, and any improvements that can be achieved could have a significant impact on New Zealanders.
We were glad to see that many of the suggestions from our previous submission were adopted as recommendations by the Commerce Commission. However, without changes to the current risk and liability settings, we were concerned that we would continue to see a slow shift in behaviour by the industry and little innovation in the market.
We recommended that:
- Current risk, liability and insurance settings be reviewed in order to ease the burden placed on BCAs;
- Council liability be capped at 20 per cent and introduce a fairer allocation of risk and responsibility across the sector;
- Less emphasis be put on rebate schemes;
- The Commerce Commission consult with Property Council and its members to discuss aspects of the residential building supply market study in more detail.