Greg Smith: Bremworth CEO on Kainga Ora's decision to use synthetic carpets over wool

Wool sector advocates are disappointed with housing agency Kainga Ora for saying no to pricey wool carpets.

A prior directive suggested Kainga Ora should choose wool over synthetic fibres for carpets, but the state landlord has chosen the latter as it's around 34% cheaper.  

Bremworth Chief Executive Greg Smith told Mike Hosking they were not asked to participate in the procurement process. 

He says nylon and wool are often comparable in price, and is unsure where Kainga Ora got their numbers from. 

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Episode Transcript

Speaker 1 (00:00):
The old wool debates is back this time King Aura,
who would be one of your larger carpet customers. I
would have thought has gone nylon over wall, that is
despite a government directive urging agencies to use wool where
practical and appropriate. Another BRM with Chief Executive Greg Smith.

Speaker 2 (00:14):
Is with us.

Speaker 1 (00:14):
Greg, morning to you. Yeah, Monti, Mike, price is the problem.
It's thirty four percent cheaper to go nylon. And if you're
building a lot of houses with a lot of carpets,
why wouldn't.

Speaker 2 (00:22):
You Oh, they never checked that was a thing. I mean,
we would have gone to extraordinary lengths to try and
get a contract, which is about six hundred thousand meters
over the last six years, and we weren't asked to participate.
So you know, those tenants and those homes missed out
on the chance to have you know, New Zealand grown

(00:42):
wool in the one.

Speaker 1 (00:44):
Can you do about that? Because it's one thing to
be out priced, but it's another thing never to have
been able to participate when the government tells them to,
you know, at least have a look at it.

Speaker 2 (00:54):
Well it's a bloody good question and there's no point
us crying in our milk over it. We're trying to
get on with it. But you know, we're doing a
lot of work with the Minister Mark Petterson, who's been
very supportive. But you know, in this case there's been
a directive. It feels to me like it's just a
rollover of the existing contracts. We've previously been asked to

(01:15):
participate in these and so this time we weren't. Next
time we'll have to. We'll have to try harder with
the lobby.

Speaker 1 (01:21):
Hand on heart. If they came to you, could you
match nylon or would you have to sell them on
it's a bit more expensive, but.

Speaker 2 (01:30):
Well solution died. Nylon and woll are often very comparable
in price. We would go after that, no problem. Or
I don't know where they got their numbers from.

Speaker 1 (01:38):
Okay, so you wool is competitive with nylon. If you're
dealing in large met ridge, absolutely what would that be
worth your company? Without giving away too much, I mean,
if someone comes to you for six hundred thousand meters
of carpet, that's quite a bit of carpet. It's more
than a hall runner, isn't it.

Speaker 2 (01:55):
Yeah, it's millions of dollars. It would be great for
for obviously, the will buy the will farms that we
deal with, it's millions of dollars to them, it's millions
of dollars to us. And let's say I say there's
no compromise on the product. There's no compromise in will
when you put it down in your home. It's a
beautiful product that it performs extraordinarily well and naturally without

(02:18):
all the chemical additives that since Otacas.

Speaker 1 (02:20):
Exactly next time I get a minister and ask them
about this, because it doesn't seem right to me. Having
said all that, how are things generally the market, the
vibe the industry.

Speaker 2 (02:27):
Oh, it's getting better. I'm happy to say we're growing good.

Speaker 1 (02:32):
We can't argue with them. You have a very merry Christmas.
Greeg appreciate it very much. Greg Smith, bring with chief Executive. Yeah,
not even participating. For more from the Mic Asking Breakfast,
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