On 22 November 2021, the Government asked us to carry out a year-long study into whether competition for residential building supplies in New Zealand is working well and, if not, what can be done to improve it.
We will be considering any factors that may affect competition for the supply or acquisition of key building supplies used to build the major components of residential buildings.
For the purposes of this study, major components of residential buildings are the foundation, flooring, roof, walls (structural and non-structural interior and exterior) and insulation.
As part of the study, we will look at a range of things, including:
the industry structure for key building supplies covered by this study
the nature of competition for these key building supplies, including any industry pricing practices or acquisition requirements that impact on competition
barriers to the entry or expansion of new or innovative building supplies, such as 'green' buildings supplies or novel prefabricated products.
Full terms of reference for the study can be found here.
As part of this study, the Commission will engage with, and send general information requests to, a range of stakeholders.
We have started reaching out to key stakeholders and in December 2021 we released a Preliminary Issues paper that seeks your feedback.
We will undertake further information gathering and engagement with industry early next year.
Publication of reports
Around July 2022, we will publish a draft report that sets out our preliminary findings about competition for residential building supplies. If we make preliminary findings that competition is not working well, we may develop some proposed options to improve competition. We will seek feedback on the preliminary findings and any proposed options.
We are required to publish our final report by 6 December 2022. The final report may include recommendations that identify ways to improve competition in the sector for the long-term benefit of consumers.
We understand that some of the information stakeholders may want to share with us could be commercially sensitive and highly confidential. Anyone who has information relevant to the study can ask us to keep their identity and/or the information provided confidential and we can discuss any available protections with them.
If confidentiality is a concern, it should be raised when you first contact us so we can discuss your concerns as early as possible.
We will be seeking feedback from interested stakeholders throughout the study.