New Zealand aims to lower building costs by increasing the competition

New Zealand authorities intend to fight the price growth in the construction industry. It is planned to simplify the procedure for introducing goods to the market to reach this goal. Such a step will help new products find consumers and increase competition.

The government declared that it is ready to follow the recommendations of a Commerce Commission report on residential building supplies. The competition authorities said that the country needs to ease the entry process for new products in the construction industry. Competing suppliers should be able to expand the business.

According to Building and Construction Minister Megan Woods, it is harder for products offering the alternative to consumers to make a name for themselves and maintain their positions. Government welcomes this and examines the recommendations to understand how to increase the competition without extra costs from buyers. 

The price growth became a significant factor that affected the growing inflation in New Zealand. At the beginning of this year, it had already reached a high in three decades. Such a situation forced the central bank to tighten its monetary policy. Disruptions in supply chain and staff costs negatively impacted the construction industry. The lack of competition among the suppliers of crucial goods (cement, plasterboard) increased the expenditures.