In a recent column, Max Rashbrooke highlighted the horror of NZs under regulated market…
The bad news is that, to investigate 200,000-300,000 terrible rentals, the Ministry of Business, Innovation and Employment (MBIE) has employed a frontline inspectorate numbering … 37. Each inspector will have to check somewhere between 5000 and 8000 rentals.
…there is only 37 inspectors of rental properties for 300 000 terrible rentals?
Similar poorly funded regulation is apparent in the 82 labour inspectorates who are supposed to police hundreds of thousands of migrant worker exploitations!
Time and time and time again in New Zealand we see an old boy matrix of vested interests who occupy market dominance and act like a monopoly, duopoly or oligopoly raking in vast wealth while leaving the local small and medium sized operators outside the cosy relationships!
Up and down NZ, small and medium enterprises are unable to compete because of the lack of basic regulation in the market!
We’ve seen it with the Supermarket duopoly, the medicinal cannabis oligopoly, the Gib Board monopoly – each time under regulated and poorly regulated capitalism continues to screw over us the consumers at a time of a cost of living crisis!
Frustration inside the drainage industry has reached boiling point recently with anti competitive practices and crony capitalism that would make your average South American Drug Cartels blush.
Local drainage industry sources tell of being blocked and unable to open accounts with large suppliers and when they can, they won’t give them anywhere near market rates.
A recent meeting with a Plastics manufacturer to get access to the plastics/PE market by local drainage contractors was a classic example of the problems to access fair markets.
It took months to get the meeting and was then told in no uncertain terms that they were protecting their relationships with Fletchers – Humes and Hynds.
The pricing that was then offered was designed to keep the local contractors uncompetitive – the pricing offered was not even close to market rates.
Local contractors try to buy Pipe off of another local supplier but their biggest customer is Hynds so the pricing they offer local contractors is more expensive – so again anti-competitive pricings designed to side-line small to medium drainage companies.
One industry source said,
“They have clearly done their homework to ensure that it is just too hard to get enough of the right products and compete against the existing system.”
“To be able to compete in the civil market where the serious dollars are, with the volumes required and the back up systems in place to offer the right service levels we must have fair access to NZ Suppliers.”
“However this access is being actively blocked as set out above.The other main problem from this lack of access to Civil Pipe is that it holds small / medium contractors out of the subdivisional market as we are unable to offer a package deal such as that proffered by Hynds and Humes leaving us feeding on the crumbs – while the Cartel potentially overcharges the public and then rakes in a fortune.”
Comrades, I’m not looking for socialism, just basic regulated capitalism!
There needs to be an urgent investigation into the drainage industry to ascertain if market dominance is loading up costs to housing, local council and State Housing!
Have Labour dropped the ball again on properly regulating another market?
In this case we need to drain the swamp to see who is dominating the drainage market!
This could be adding enormous costs to housing and no none seems to have looked into it at all because it’s all under the ground!
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