RMA review great but structure of drainage duopoly also needs investigation

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Resource management fix: The Government’s proposed mega overhaul of RMA revealed

The Government’s promising long-awaited new legislation will fix a “broken” resource management system and save the economy billions over the coming decades.

More than 100 plans influencing consenting across different centres will be reduced to just 15 regional plans developed by local committees and guided by long-term strategies. A national framework will also be devised to ensure central government has a say in overall direction.

Environmental protection will also now be focused on outcomes, “setting limits to maintain current environmental limits and targets where degradation needs to be restored”. 

But full implementation is a long way away. The new system will be introduced in tranches, but it will take 10 years. The Government will experiment on three regions initially, with a “model project” to be announced to test the new system.

Look, we all want less bureaucracy while ensuring sustainable growth to the many infrastructure upgrades this country desperately needs, so I salute the desire to reform the RMA, however I just think that an immediate issue is still glaring us in the face in the form of the way the  drainage industry is economically structured that is adding enormous cost to everything before we even attempt reform.

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.

Justice for Drainage is a new push from those in the independent drainage community to highlight the manner in which the industry is dictated to by a duopoly which in turn is pushing up the housing costs to first time home buyers, councils and state housing…

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Justice for Drains has put out a Poll to the private drainage contractor community and 99% claim costs are too high, 100% want an investigation into the duopoly practices that keep prices high and 99% want the Government to step in.

We never consider the costs of drainage and how a duopoly within the industry keeps these costs high and are ultimately inflating costs for Councils, home buyers and State housing!
Here were anonymous quotes from those in the industry who wish to remain anonymous because they fear reprisals from the duopoly players.

“We can only finish jobs with the support of the Independent Companies. The Big player charges double”
“Increasing costs we have to pass on to our clients”
“Getting uneasy handing our prices to customers.. Really feel for our customers as this is another cost of living increase that they dont need.”
“Investigate the other companies Hynds own to block competition.”
“Competitive pricing wont exist until the company Split up.”
“No competition / Not Fair for people who live in NZ”
“Pricing controlled by the Big Guys”
“Tax payers foot the bill for everything!”
“Bloody Horrible”
“I have to pass these costs on to the NZ Public who is bearing the excess pricing again!”
“Just like the Supermarket Rip OFF”
“PRICE GOUGING FOR YEARS”
“Hynds and Humes have been over pricing products for 20+ years.”

…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!

Pricing distortions in the Drainage Wholesale market are being caused by an effective duopoly which is curing enormous costs for everyone building.

Comrades, I’m not looking for socialism, just basic regulated capitalism!

The Government could help by insisting 15-20% of Drainage Supplies to Kāinaga Ora be independent drainage suppliers.

This industry structure requires urgent investigation.

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1 COMMENT

  1. once again an NZ cartel, we need to realise NZ is too small for effective competition in many fields….I think it was churchill who said ‘the only thing worse than a state monopoly is a private one’ and winnie weren’t no commie.
    and for the low tax brigade these cartels only function is to take money from your pocket and put it in theirs….that’s what middle men do….the solution to your tax gripes is a state operated dept of works.

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