Episode Transcript
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Speaker 1 (00:00):
New figures from the Building Research Association show construction companies
making up a third of all businesses in liquidation. That's
up from twenty five percent and twenty twenty two. Chris
Penk they building a construction minister with me this morning.
Good morning minister, Good morning to you Jee. Not a
great number to have on your watches, as the minister.
Not a great stat to have liquidations up thirty seven
(00:21):
percent in the year of February.
Speaker 2 (00:23):
Yeah, I mean, not a great stat but I mean
more importantly than for me is minister or the government.
He has a lot of real world paine out here.
It's been really hard for the last few years. So
we're obviously focused on the things within our control, which
is turning it around in terms of the rules and
regulations that actually make it easier, not hardner. So when
people can climb out of that hole, it's a bit
easier to do so. But the more important big picture,
(00:45):
Staff is all the macroeconomic conditions around inflation, ocr coming
down and so on, and part of taking our medicine,
to use your metaphor of a minute ago.
Speaker 1 (00:55):
Yeah, and we'll come to that in a second. How
many tradees have left the country do we know.
Speaker 2 (01:00):
I mean, we don't know to the precise number, but
it's a combination of people having gone to Australia or
or decided to do other things. So obviously that's a
real problem in an issue. And you know, we say
when a Kiwi family set shopping.
Speaker 1 (01:16):
Do they not give you numbers on that? The officials
they don't give you numbers on how many traders have
left New Zealand.
Speaker 2 (01:23):
No they don't. I mean, we don't make people say
when they leave the country. But I mean anecdotally, at
least we can say it's a massive problem. And the
point I was just going to make is it's a
problem for them, But obviously it's also a problem for
the sector because when we start to pick up the
levels of activity again, people to do the work.
Speaker 1 (01:40):
Which leads me to my next question. Are we in
a perfect storm? The OCRs coming down, prices are stabilizing
or increases, builders have gone to the wall, and traders
are going to Australia. Is this the perfect storm when
it does crank up for a repeat of the housing crisis?
Speaker 2 (01:58):
Well, I mean I don't. I don't think so in
terms of the capacity to bounce back, but it will
be slower than it otherwise needed to have been. And
unfortunately this is the long run passion of the construction sector.
We have a deeper sort of boom and bus cycle
than we need because you know, there is a lag
effect basically. So I mean one of the things we
can do is just to try and be clear headed
(02:19):
about that and to say, well, we know that times
will be better and to avoid them being tougher for
longer until we climb out of that hole. We need
to do everything in our power to make it quicker
and easier so that people can crank up the work
more quickly and not shed people along the way.
Speaker 1 (02:33):
Monster appreciate your time. Did you see the poll last night?
What can you sum up your vision in one word
for us Minister?
Speaker 2 (02:41):
I think tougher is not bad actually or no best
and it might not be sexy, but actually it's we're
at the country, you know, the post COVID spending spurges
has finished and we've got to you know, get out
of that hole. So I think that's what we're doing.
And it's slow bit sure, but a lot of people
are really had to do it, and I think.
Speaker 1 (03:01):
We'll give you Chris Pink Building and Construction Minister. For
more from Early Edition with Ryan Bridge, Listen live to
news talks.
Speaker 2 (03:08):
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