July 26, 2025 • 11 mins
Until now, one company's plasterboard has had a near-duopoly in New Zealand, leading to some of the highest prices in the world - 67% more expensive than the U.S. according to the Minister of Building and Construction.
From tomorrow, thousands of overseas building products including plasterboard and cladding systems will be given the green light for use in construction in New Zealand.
The Government's introduction of a Building Product Specifications document will allow for greater competition in the market, and hopefully less costly building.
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Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News talks
'b hands up.
Speaker 2 (00:12):
Not if you're driving, of course, if you thought that
JIB was the actual name of the material and not
just the brand, because for years we've used it in
the same way we used glad Rap or Hoover, which
is part of the problem. Until now, one company's plasterboard
has had a near monopoly in New Zealand, leading to
some of the highest prices in the world, sixty seven
percent more expensive than plasterboard in the United States, according
(00:34):
to the Minister. And from tomorrow, thousands of overseas building products,
including plasterboard and plotting systems, will be given the green
light for use in construction in New Zealand. The government's
introduction of Building Products Specifications Document will allow for greater competition,
competition in the market and hopefully, at the end of
the day, less costly building. And Chris Penke's a Minister
(00:56):
for Building Construction and he's with us now.
Speaker 3 (00:58):
Chris, good afternoon, Good afternoon to you, sir.
Speaker 2 (01:01):
What process did you have to go through before announcing
these changes? Because've been a long time come, haven't they.
Speaker 3 (01:07):
Yeah, there's been a long time in the sense that
this idea has been around four years and it's been
well established that we've got a lack of competition and
ensuredain areas of our building work, and most famously or
infamously in twenty twenty two a big short of plaster board,
which was a particular supply chain shock, but actually, more
(01:27):
generally than that, it's been the idea that we don't
tend to use the full range available to us, and
bearing in mind a lot of our products that are
perfectly respectable countries already use, we're not talking about lowering standards.
So it's an idea whose time has come. So we're
really pleased to be able to bring that to our
shelves from tomorrow on. Onds.
Speaker 2 (01:45):
So, how much of the cost of building can realistically
be addressed by today's changes. What are you expecting the
impact to be.
Speaker 3 (01:53):
Yeah, it's hard to put an exact dollar figure on it,
but if you think about the cost of a build,
which might say, you know, modestly and you build half
a million dollars easily, and then twenty five percent of
add is the cost of the materials as opposed to
the labor, you know, and we don't want to short
change out our great key we workers and then the
other processes, and there's probably some cost savings so we
can make there too, But that's another story for another day.
(02:14):
But think about the product's being twenty five percent and
then you break that down in terms of the different
types of products, and you know, a few percentage points here,
a few percentage points here, that's you know, tens or
even hundreds of thousands of dollars that we could look
to save. So you know, there's a lot at stake here.
In frankly, it's going to make a big difference we expect.
Speaker 2 (02:34):
How long do you expect this to filter through from
your announcement to quotes that will be provided to builders
to do work involving these products.
Speaker 3 (02:43):
Yeah. Interestingly, actually a number of people have told me
so it don't inductrial, but but I get it that
that people have been waiting for this change and looking
forward to it, and that actually ordered some material in anticipation.
So it could be as soon as tomorrow, but realistic
it'll take a while for people to get their head
around it, and there'll be existing contents that have specified
you know, are branded products, whatever it might be. By
(03:04):
the way, it's not plaster board. But that's that's one
example that people tend to know is you quite rightly introduced.
So we think over time it will increase and you'll
be an awareness that you've actually got the ability to
look around and think about what products might be yes,
a bit more affordable, but also maybe you know, innovative
and more sustainable or otherwise, you know, using the full
range of out there and available to us. So we
(03:26):
think that will increase over time.
Speaker 2 (03:28):
What you've described the dominance of one plaster board manufacturers
frankly outrageous. Do you think previous the previous government In fact,
I should probably say previous governments have dropped the ball
on addressing monopolies in the sector.
Speaker 3 (03:40):
Well, I mean and acdosally there have been instances of
market dominance and you know, and it's able to be
demonstrated in a couple of particular cases. But you know,
for me, it's not a which aren't about any specific
products or lett alone company. And in fact, I mean
that the frankly outrageous sound bite was around the cost
of building in general. So you know, there's many different
(04:01):
parts of that from my point of view, you know,
it's not really a politically partisan issue, and I will say, actually,
to give credit where it's due, not only has the
current opposition come on board with these changes as we've
been making them this term, but actually they would argue
in with somethingness that the moves, you know, we're starting
to be made in the last room because there was
the market study or the task for I think that
(04:23):
they set up to respond. So you've got to do it,
and you've got to get it done. So we're really
pleased to do that. And you know, if it enjoys
wide supporters we've had so far, then so much to be.
Speaker 2 (04:33):
Nice to get a bit of a spirit of bipartisanship.
Speaker 1 (04:35):
Isn't it.
Speaker 2 (04:37):
What about what about the moves and the pressure that
will be put on by various manufacturers to get you know,
architects to specify I'm just going to elephant in the room,
specify JIB and specify this brand, which will be that
one of their ways of resisting flexibility and supply.
Speaker 3 (04:54):
Yeah, I mean, very strict question. I will say though
that a couple of the other changes that we've made
alongside this, actually before today's announcement, but but you know,
it takes time for for it to work its way
into the consciousness. But one of the changes we've made
is that in a building content application, you can now
specify two different brands. So it might be, for example,
(05:15):
we're going to write down plaster board A and task
the board B, and you can use either of them.
And then the one that's a bit similar to that
is that if you have a design and then you
want to make a small change, you want it again
one plaster board for another, or you know, planning or
whatever the case may be, as long as it's still
meeting the same relevant standards so that we're not going
(05:38):
backwards in terms of quality, sustainability, safety, et cetera. Then
you can actually do that as of right and it
will only be a minor variation. And in case that
all sounds to be technocratic and ho hum, the reality
is save a huge amount of time and costs by
not having to have a formal variation to your building
content or even we're in case scenario, getting a whole
(05:58):
new one because when people have to jump through those
SUPs they go above it. We'll just go with the
same thing that we already had intended to do, regardless
of ability. Casts are a bit of extra time, so
it's hopefully and exercise and opening up things. But from
that perspective as well, what about I mean.
Speaker 2 (06:12):
What about those quality reassurances. Do we just rely on
building codes and specs that cover it all or what?
Speaker 3 (06:18):
Yeah, we've got a building code already and we've got
a set of New Zealand standards. So the thing that
we're doing today well come into effect tomorrow. But we're
talking now is a list of standards that are used
overseas in certain places, and I'll talk about those if
you're interested. But basically the determination is these are states
(06:39):
in countries that are credible and are comparable to New
Zealand conditions, and then the standards are the same or
higher in terms of all the physical qualities that we
need in terms of structure, integrity, via retardants, features and
so on. So if we're equal or higher than our
current standards, that we're not losing out in tuns of
the quality, safety, et cetera. So that's the assurance that
(07:00):
we're not just opening up to a flat of quality stuff.
We actually want to do at least as well as
we currently are. So get your mechanisms.
Speaker 2 (07:08):
What about retailers retailers. How ready are they and willing
to provide a range of products.
Speaker 3 (07:15):
Yeah, I mean the proof of the putting, of course,
will be in the eating, so we'll see. But certainly
again and it goes to the and without naming any names,
I've had a number of the big retailers say to
me that they're perfectly happy with the idea that they'll
be able to have a broader range of stock. I mean, thankfully,
it will be good for them to be able to
offer more cost effective, competitive products, and their competitors will
(07:37):
be doing the same by the way, and their consumers
will be happy, so it's a win win all round.
And maybe if I can just add in there that
for New Zealand suppliers of products and materials, they won't
be any worse off because to the extent that they're
providing a great product and it's already here so it
doesn't need to be imported with the cost associated with that,
and they'll be able to continue to do well. So
(07:57):
I don't think anyone should feel afraid of the effective competition.
It can only better outcomes across the border.
Speaker 2 (08:03):
Well competition generally look after it, for instance, and I
don't want to beat up on Fletcher Building. Okay, but
they're probably the elephant in the room with jib. But
for instance, Fletcher Building owned Placemakers, Fletcher Building owned jib
is Placemakers is going to be stocking other brands of
GiB or are they simply going to if you forced
kicking and screaming on the price front, because might attendant
Bunnings and the other supplies are going to be offering
a wider range.
Speaker 3 (08:25):
Yeah, I mean that they would have to ask for
that for themselves. But my instinct is that you know,
any any retail brands that are associated with product brands
in the bigger name, you know behind all that, you know,
they could do whatever they like. But I suppose that's
the shop down the road. Be it one of the
other big competitors is offering something more affordably in no
(08:46):
less quality than I think. You know, nature will take
its course in terms of the competitor, because the consumer
will go to you know, the one, not the other.
Speaker 2 (08:53):
Yeah, you've said this is just the beginning. What's what's
next for the other levers you're planning to pull to
reduce the building costs or supply Yeah.
Speaker 3 (09:02):
I mean in terms, it's even just a start in
terms of the product. So what I mean by that
is we've gone with the standards that are really basically
quite obvious in the areas that are really available to
get some big cost reduction. So we've talked about past
the board or linings, but there's also insulation, doors, windows
and so on. But there are other aspects that we
(09:24):
haven't yet got to. Number One, we wanted to make
some changes as quickly as possible to get the ball
rolling and provide relief as soon as possible, but also
by carefully working through other ones. Now we'll also be
able to open up, you know, to other areas that
we can safely you know, improve competition without redusing quality,
et cetera. And in terms of other areas within the
(09:45):
building system more generally, one of the things I've talked
publicly about aready. So it won't be a shock or surprise,
but I'm interested to know if we've got the right
set up. In terms of the sixty six different councils
at the moment that are building consent authorities, you know,
it's a tough gig for them to have to resource
a whole department to be able to provide every kind
(10:05):
of building consent and inspection, so maybe some rationalization on
those lines, and to work closely alongside then to work
out what's going to be good for them and also
the builders in the area as another place we can
go to to get on gain.
Speaker 2 (10:20):
Is there anyone who doesn't like these changes, because I
find it hard to argue with any of it. I mean,
you're freeing up supply, given more choice, good news.
Speaker 3 (10:27):
Yeah, obviously, I've been really pleased with the response that
has been so positive and including on a bipartisan political
basis again, and there's no need for us to not
be that way. And the reason I think that's important,
by the way, is because the construction sector has had
so many ups and downs. It's historically how it goes.
You know, we could analyze that to the cows come home,
but the reality is they need to help and also
(10:47):
they need the certainty as businesses to be able to
invest in large amounts of stock without fearing that it's
you know, not you know that the tat will be
turned off by the other guys. So no one's idea
against it. Very fair questions always, of course, are raised,
you know, are we going to have any kind of
loss of quality. But that's why we designed system specifically
to ensure that because I don't want that doesn't collect
(11:09):
any more than anyone else across the aisle or withst
wants to either.
Speaker 2 (11:12):
Good stuff. Chris, Hey, thanks so much for your time.
Really appreciate the stand.
Speaker 1 (11:17):
For more from the Weekend Collective, listen live to news
talks it'd be weekends from three pm, or follow the
podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News talks
'b hands up.
Speaker 2 (00:12):
Not if you're driving, of course, if you thought that
JIB was the actual name of the material and not
just the brand, because for years we've used it in
the same way we used glad Rap or Hoover, which
is part of the problem. Until now, one company's plasterboard
has had a near monopoly in New Zealand, leading to
some of the highest prices in the world, sixty seven
percent more expensive than plasterboard in the United States, according
(00:34):
to the Minister. And from tomorrow, thousands of overseas building products,
including plasterboard and plotting systems, will be given the green
light for use in construction in New Zealand. The government's
introduction of Building Products Specifications Document will allow for greater competition,
competition in the market and hopefully, at the end of
the day, less costly building. And Chris Penke's a Minister
(00:56):
for Building Construction and he's with us now.
Speaker 3 (00:58):
Chris, good afternoon, Good afternoon to you, sir.
Speaker 2 (01:01):
What process did you have to go through before announcing
these changes? Because've been a long time come, haven't they.
Speaker 3 (01:07):
Yeah, there's been a long time in the sense that
this idea has been around four years and it's been
well established that we've got a lack of competition and
ensuredain areas of our building work, and most famously or
infamously in twenty twenty two a big short of plaster board,
which was a particular supply chain shock, but actually, more
(01:27):
generally than that, it's been the idea that we don't
tend to use the full range available to us, and
bearing in mind a lot of our products that are
perfectly respectable countries already use, we're not talking about lowering standards.
So it's an idea whose time has come. So we're
really pleased to be able to bring that to our
shelves from tomorrow on. Onds.
Speaker 2 (01:45):
So, how much of the cost of building can realistically
be addressed by today's changes. What are you expecting the
impact to be.
Speaker 3 (01:53):
Yeah, it's hard to put an exact dollar figure on it,
but if you think about the cost of a build,
which might say, you know, modestly and you build half
a million dollars easily, and then twenty five percent of
add is the cost of the materials as opposed to
the labor, you know, and we don't want to short
change out our great key we workers and then the
other processes, and there's probably some cost savings so we
can make there too, But that's another story for another day.
(02:14):
But think about the product's being twenty five percent and
then you break that down in terms of the different
types of products, and you know, a few percentage points here,
a few percentage points here, that's you know, tens or
even hundreds of thousands of dollars that we could look
to save. So you know, there's a lot at stake here.
In frankly, it's going to make a big difference we expect.
Speaker 2 (02:34):
How long do you expect this to filter through from
your announcement to quotes that will be provided to builders
to do work involving these products.
Speaker 3 (02:43):
Yeah. Interestingly, actually a number of people have told me
so it don't inductrial, but but I get it that
that people have been waiting for this change and looking
forward to it, and that actually ordered some material in anticipation.
So it could be as soon as tomorrow, but realistic
it'll take a while for people to get their head
around it, and there'll be existing contents that have specified
you know, are branded products, whatever it might be. By
(03:04):
the way, it's not plaster board. But that's that's one
example that people tend to know is you quite rightly introduced.
So we think over time it will increase and you'll
be an awareness that you've actually got the ability to
look around and think about what products might be yes,
a bit more affordable, but also maybe you know, innovative
and more sustainable or otherwise, you know, using the full
range of out there and available to us. So we
(03:26):
think that will increase over time.
Speaker 2 (03:28):
What you've described the dominance of one plaster board manufacturers
frankly outrageous. Do you think previous the previous government In fact,
I should probably say previous governments have dropped the ball
on addressing monopolies in the sector.
Speaker 3 (03:40):
Well, I mean and acdosally there have been instances of
market dominance and you know, and it's able to be
demonstrated in a couple of particular cases. But you know,
for me, it's not a which aren't about any specific
products or lett alone company. And in fact, I mean
that the frankly outrageous sound bite was around the cost
of building in general. So you know, there's many different
(04:01):
parts of that from my point of view, you know,
it's not really a politically partisan issue, and I will say, actually,
to give credit where it's due, not only has the
current opposition come on board with these changes as we've
been making them this term, but actually they would argue
in with somethingness that the moves, you know, we're starting
to be made in the last room because there was
the market study or the task for I think that
(04:23):
they set up to respond. So you've got to do it,
and you've got to get it done. So we're really
pleased to do that. And you know, if it enjoys
wide supporters we've had so far, then so much to be.
Speaker 2 (04:33):
Nice to get a bit of a spirit of bipartisanship.
Speaker 1 (04:35):
Isn't it.
Speaker 2 (04:37):
What about what about the moves and the pressure that
will be put on by various manufacturers to get you know,
architects to specify I'm just going to elephant in the room,
specify JIB and specify this brand, which will be that
one of their ways of resisting flexibility and supply.
Speaker 3 (04:54):
Yeah, I mean, very strict question. I will say though
that a couple of the other changes that we've made
alongside this, actually before today's announcement, but but you know,
it takes time for for it to work its way
into the consciousness. But one of the changes we've made
is that in a building content application, you can now
specify two different brands. So it might be, for example,
(05:15):
we're going to write down plaster board A and task
the board B, and you can use either of them.
And then the one that's a bit similar to that
is that if you have a design and then you
want to make a small change, you want it again
one plaster board for another, or you know, planning or
whatever the case may be, as long as it's still
meeting the same relevant standards so that we're not going
(05:38):
backwards in terms of quality, sustainability, safety, et cetera. Then
you can actually do that as of right and it
will only be a minor variation. And in case that
all sounds to be technocratic and ho hum, the reality
is save a huge amount of time and costs by
not having to have a formal variation to your building
content or even we're in case scenario, getting a whole
(05:58):
new one because when people have to jump through those
SUPs they go above it. We'll just go with the
same thing that we already had intended to do, regardless
of ability. Casts are a bit of extra time, so
it's hopefully and exercise and opening up things. But from
that perspective as well, what about I mean.
Speaker 2 (06:12):
What about those quality reassurances. Do we just rely on
building codes and specs that cover it all or what?
Speaker 3 (06:18):
Yeah, we've got a building code already and we've got
a set of New Zealand standards. So the thing that
we're doing today well come into effect tomorrow. But we're
talking now is a list of standards that are used
overseas in certain places, and I'll talk about those if
you're interested. But basically the determination is these are states
(06:39):
in countries that are credible and are comparable to New
Zealand conditions, and then the standards are the same or
higher in terms of all the physical qualities that we
need in terms of structure, integrity, via retardants, features and
so on. So if we're equal or higher than our
current standards, that we're not losing out in tuns of
the quality, safety, et cetera. So that's the assurance that
(07:00):
we're not just opening up to a flat of quality stuff.
We actually want to do at least as well as
we currently are. So get your mechanisms.
Speaker 2 (07:08):
What about retailers retailers. How ready are they and willing
to provide a range of products.
Speaker 3 (07:15):
Yeah, I mean the proof of the putting, of course,
will be in the eating, so we'll see. But certainly
again and it goes to the and without naming any names,
I've had a number of the big retailers say to
me that they're perfectly happy with the idea that they'll
be able to have a broader range of stock. I mean, thankfully,
it will be good for them to be able to
offer more cost effective, competitive products, and their competitors will
(07:37):
be doing the same by the way, and their consumers
will be happy, so it's a win win all round.
And maybe if I can just add in there that
for New Zealand suppliers of products and materials, they won't
be any worse off because to the extent that they're
providing a great product and it's already here so it
doesn't need to be imported with the cost associated with that,
and they'll be able to continue to do well. So
(07:57):
I don't think anyone should feel afraid of the effective competition.
It can only better outcomes across the border.
Speaker 2 (08:03):
Well competition generally look after it, for instance, and I
don't want to beat up on Fletcher Building. Okay, but
they're probably the elephant in the room with jib. But
for instance, Fletcher Building owned Placemakers, Fletcher Building owned jib
is Placemakers is going to be stocking other brands of
GiB or are they simply going to if you forced
kicking and screaming on the price front, because might attendant
Bunnings and the other supplies are going to be offering
a wider range.
Speaker 3 (08:25):
Yeah, I mean that they would have to ask for
that for themselves. But my instinct is that you know,
any any retail brands that are associated with product brands
in the bigger name, you know behind all that, you know,
they could do whatever they like. But I suppose that's
the shop down the road. Be it one of the
other big competitors is offering something more affordably in no
(08:46):
less quality than I think. You know, nature will take
its course in terms of the competitor, because the consumer
will go to you know, the one, not the other.
Speaker 2 (08:53):
Yeah, you've said this is just the beginning. What's what's
next for the other levers you're planning to pull to
reduce the building costs or supply Yeah.
Speaker 3 (09:02):
I mean in terms, it's even just a start in
terms of the product. So what I mean by that
is we've gone with the standards that are really basically
quite obvious in the areas that are really available to
get some big cost reduction. So we've talked about past
the board or linings, but there's also insulation, doors, windows
and so on. But there are other aspects that we
(09:24):
haven't yet got to. Number One, we wanted to make
some changes as quickly as possible to get the ball
rolling and provide relief as soon as possible, but also
by carefully working through other ones. Now we'll also be
able to open up, you know, to other areas that
we can safely you know, improve competition without redusing quality,
et cetera. And in terms of other areas within the
(09:45):
building system more generally, one of the things I've talked
publicly about aready. So it won't be a shock or surprise,
but I'm interested to know if we've got the right
set up. In terms of the sixty six different councils
at the moment that are building consent authorities, you know,
it's a tough gig for them to have to resource
a whole department to be able to provide every kind
(10:05):
of building consent and inspection, so maybe some rationalization on
those lines, and to work closely alongside then to work
out what's going to be good for them and also
the builders in the area as another place we can
go to to get on gain.
Speaker 2 (10:20):
Is there anyone who doesn't like these changes, because I
find it hard to argue with any of it. I mean,
you're freeing up supply, given more choice, good news.
Speaker 3 (10:27):
Yeah, obviously, I've been really pleased with the response that
has been so positive and including on a bipartisan political
basis again, and there's no need for us to not
be that way. And the reason I think that's important,
by the way, is because the construction sector has had
so many ups and downs. It's historically how it goes.
You know, we could analyze that to the cows come home,
but the reality is they need to help and also
(10:47):
they need the certainty as businesses to be able to
invest in large amounts of stock without fearing that it's
you know, not you know that the tat will be
turned off by the other guys. So no one's idea
against it. Very fair questions always, of course, are raised,
you know, are we going to have any kind of
loss of quality. But that's why we designed system specifically
to ensure that because I don't want that doesn't collect
(11:09):
any more than anyone else across the aisle or withst
wants to either.
Speaker 2 (11:12):
Good stuff. Chris, Hey, thanks so much for your time.
Really appreciate the stand.
Speaker 1 (11:17):
For more from the Weekend Collective, listen live to news
talks it'd be weekends from three pm, or follow the
podcast on iHeartRadio
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