Minister Megan Woods investigates GIB crisis – now do drainage!

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

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

After the Gib crisis: Megan Woods forms new critical materials taskforce

Building and Construction Minister Megan Woods has announced that a new critical materials taskforce is being formed, partly in response to the Gib crisis.

The taskforce will include sector leaders from the Government’s plasterboard investigation group, established in June.

But it will also incorporate experts covering smaller operations, design, consenting, products and procurement matters.

Woods said the focus would be on trying to maximise productivity and cushioning businesses from supply chain risks, giving guidance, data and information to help builders, designers and business owners.

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Great work Minister Woods, now do drainage!

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…

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.

Minister, 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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28 COMMENTS

  1. It’ll need to be a broader investigation than just into dry board.

    The cost of building an average family home in NZ cf other comparable nations is a scandal.

    Building codes and local bodies constantly push construction solutions and materials based on product produced by the big cartels. Try to approach your project in any other manner outside the producer approved cookie cutter (including building methods time tested over centuries ) and you are in for grief and unnecessary extra expense. In recent years (probably still) builders have had to regularly maintain building licences by attending courses to keep them up to date with industry methodology. At such they were bombarded by industry promotions and product endorsements.

    I’ve often wondered, is there any solid justification for new home construction costs to track housing market inflation?

  2. Why are ministers having to clean up messes the Commerce Commission are legislatively supposed to prevent and deal to?

    Time and again these monopolies or duopolies turn feral and everyone is surprised, while the Commerce Commission sits dumbly by doing nothing. And these businesses seem to become dominant players with incredible ease without oversight.

    How about a task force to ensure the ComCom is doing its job?

  3. I think you’ll find regulation favours corporations. This seems to be a left wing blind spot. If you increase costs and obligations on business it invariably is felt most by the smaller players

  4. More regulations puts prices up.

    Show me ONE government regulated industry where prices have gone down!!!!

    How about less regulation.
    Like the GIB board problem. Let individuals import what they want, rather than have regulators stop that by imposing self serving regulations.
    So why Cant Kiwis import Gib from Countries that have GIB standards albeit they are not identical to ours.

    Same with Nurses, why all the regulation and restrictions.

    Of course your false but oft trotted out Supermarket duopoly BS.
    Regulate that until prices go UP!!!!

    humph

    • I have worked on a site where it was either Indian or Vietnamese drywall was used. I think that in about 5 – 10 years, the walls will all have to be torn out. The quality was pretty poor. The plasterer really earned his money.

      The idea that foreign companies that are not beholden to NZ laws and regulations can then send any old shit to NZ without repercussions is frankly, well, shit. Think James Hardy and the billions that we as tax payers have forked out.

      Our current regulations are in place because of deregulation.

Comments are closed.