Building sector needs help - taskforce

The $12 billion construction sector needs Government help to lift productivity and improve skills.

So says the report of the building and construction sector productivity taskforce out yesterday. It also encourages more disclosure from the Government on big infrastructure projects.

The taskforce, chaired by Institute of Architects president Richard Harris of Jasmax, found too many regulations pushing up land prices, limiting activity and stifling innovation.

Many industry leaders who contributed to the report saw this as a critical factor and pointed to layering of regulation across central, regional and local government, saying this results in less efficient worksites and low innovation.

The sector is also worried about the need for staff to be kept working throughout the big downturn where new house starts have fallen from about 30,000 annually to just 13,000.

New Zealand does not have a housing oversupply, the report says, so any big drop in new housing starts would have an immediate impact on supply.

Major housing shortages are predicted in Manukau, Auckland City, Waitakere and the North Shore because population is growing but few new houses are rising, the report says.

It calls for the Government to standardise building components of prisons, schools and hospitals. It refers to "standardised rather than bespoke designs" but says this depends on the geographical environment where the developments are happening.

A single leadership body is needed to bring together all parts of the sector, the report says. Instead, about 40 separate organisations represent the industry but no one industry body works in the whole sector's interests.

The report recommends that the Department of Building and Housing develop fuller analysis of the sector's performance.

Building and Construction Minister Maurice Williamson said reform of the Resource Management Act was under way and would reduce compliance costs for business. He said the Cabinet would consider the report's recommendations and the Government would respond.

BUILDING BLOCKS
* Employs about 178,000 people.
* A large number are Maori
* Builds $4 billion of commercial structures.
* Maintains 10,000km of roads annually.
* Contributes 5 per cent of GDP.