Cheap, faulty building imports compromising local jobs

E t says cheap, faulty building imports compromising local jobs and building safety

The union, E t says local building product manufacturers are losing out to cheaper imports which are failing safety tests.

A Commerce Commission report reveals new testing shows some steel mesh used to reinforce concrete floors continues to fail certification standards.

E t’ organiser Joe Gallagher says the union understands these products included imported steel mesh.

He says imported materials hurt local companies like NZ Steel which are pushed out of the market – despite its better quality and guarantees.

“Members have been taking pay cuts to keep firms viable”, he says.

“There are about 1,000 members of the combined unions at NZ Steel paying $55 million in tax to the government every year; the wider economic benefit is $138 million.

“Recent times have been tough. Workers and the company have been working together to save $21 million over the past year. Why isn’t the company drowning in work from the rebuild?”

He says NZ Steel, which accounts for 1% of GDP, is under added pressure from pending ETS compliance costs and rising electricity lines charges which will gouge tens of millions of dollars from its bottom line.
Joe also cites problems with imported plumbing components, toughened glass and rebar – the steel bars used to reinforce concrete columns: “This needs to be flexible enough to bend: the fear is it isn’t”

He says the government removed tariffs in 2014 to lower prices for the Christchurch rebuild.

But he says: “This only results in savings of $2,600 per dwelling, and that money is being absorbed by developers and distributors, not passed on to consumers.”
He says New Zealand is the only OECD country without tariffs on steel.

E t’s Industry Co-ordinator, Manufacturing, Anita Rosentreter says the raft of problems raise concern over what might happen if there is another big earthquake: “ Glass balustrades could break, buildings might not be strong enough with faulty steel mesh, plumbing would fail.”