Dear Megan Woods – I’m not looking for socialism from Labour, just basic regulated capitalism – drainage needs the same investigation as GIB!

Building sector needs major shake up – Commerce Commission

The Commerce Commission says rebates paid by major suppliers to merchants is making it difficult for new or competing products to grow in the building sector.

In its final report into the residential building supplies industry, the commission said familiar products had become embedded in building homes in New Zealand.

It highlighted quantity-forcing rebates as one of two key concerns, saying they could provide some benefits but appeared in some situations to reward merchants for purchasing large volumes through a single supplier.

This was making it harder for new and competing suppliers, it said, but suggested more research would be needed.

The second main concern was the regulatory system was making the uptake of new and innovative products too slow, costly and uncertain.

 

The exact same dynamics of duopoly power with rebates are occurring in the Drainage Industry as well!

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! In each example, poorly regulated capitalism continues to screw us over 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.

The Government could help by insisting 15-20% of Drainage Supplies to Kāinaga Ora be independent drainage suppliers. There is a recession coming, ensuring small local operators have a chance to survive using State and Council procurement decisions is more important now than ever before!

This industry structure requires urgent investigation.

 

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