The Commerce Commission is finally open to investigating the Drainage industry in NZ.
Commerce Commission Investigators are now following up on how market dynamics are being manipulated by suppliers to ensure they dominate the price and keep competitors out.
Market leaders are using their Market/Channel Power to block smaller independent companies from being able to compete in the market by restricting their ability to purchase certain products like PVC Pipe so that the smaller companies can’t put in a comprehensive quote for larger jobs as they cant include the PVC Pipe which is an important part of the Drainage material required to prepare subdivisions!
There are political solutions that could see independent companies being given preference when applying for State work contracts, but the Commerce Commission needs to investigate so we understand the additional costs that are plaguing
We now know from the data that we are seeing inflation generated not from wage rises but price gouging!
Housing costs are a nightmare, if we are being price gouged by plumbing, we need that rectified and regulated!
I’m not looking for Socialism from Labour anymore, just basic regulated Capitalism.
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I think they may well be disappointed. I will be surprised to see any fines.
We need more competition in the market but we “feel” that we cannot afford to loose more local manufacturing or they have been convinced that the quality of materials manufactured overseas is not suitable for use in NZ.
If we need more local manufacturing we need incentives because we cannot compete with low cost manufacturing in other jurisdictions.
Incentives are funded through taxes that could be used to support those on low incomes……… at the cost of local job losses. An electric furnace comes to mind.
the CC looks into a sewer but won’t ever clean it up.
Martyn…interesting
Higher costs bring more tax revenue without need to do anything.
The simple calculation showing that one can buy less with that revenue seems to be too complex for decisionmakers and their advisors.
Evidently raw timber prices are tanking this will be good for timber prices and building material costs coming down to realistic levels.
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