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Commerce Commission Draft on Building Supplies

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  • Commerce Commission Draft on Building Supplies

    Hi All,

    So today is the day the CC release the draft on their review of building supplies etc. Are we going to learn anything we don't already know? Unlikely as it's a monopoly and has been for decades. Unless this changes, then nothing does, and it's all just lip service.

    There is talk of more compliance -
    The watchdog has just released its draft report on competition in the residential building supplies market.

    It says it is too slow, costly, and uncertain to get new products accepted, and that must be improved.

    The Commission also raised concerns about rebates paid by established suppliers to merchants.

    It recommended introducing more compliance pathways and making it easier for new supplies to be introduced.
    RNZ

    This is interesting, though will there be transparency on the findings?

    The Commission also raised concerns about rebates paid by established suppliers to merchants.
    Those rebates rewarded merchants for purchasing greater volumes through a single supplier and could deter merchants from stocking competing products in their stores, she said.
    STUFF - see link below.

    In the meantime small time builders are struggling and many have called time - probably for greener pastures offshore.

    cheers,

    Jenny

    Competition watchdog's recommendations focus on making it easier to get competing products into the market.

  • #2
    This whole affair annoys me.

    While the building supply companies have been slow to react...and they will pay dearly for that..

    The people responsible for increasing population without first increasing houses are the real rats.

    Employers who say they can't find local staff, really couldn't find local slaves.

    Good old arrogance, greed and entitlement.

    Without this sloth/greed created bubble, usual production increases would have been just fine .

    Seriously.. can you see the boardroom meeting.

    " Ok then, lets let lots of new people in, they can do kiwi's jobs for less, and the employers like making more money"

    " Excuse me sir, where will they all live and go to school and get medical treatment"?

    " What's that Jones?.. I can't hear you, next order of business!"





    Last edited by McDuck; 05-08-2022, 07:28 AM.

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    • #3
      The latest update from the Commerce Commission.....

      “The best options for improving competition over the longer-term involve enabling suppliers of key building supplies to enter and expand more easily,” Ms Rawlings says.
      And the recommendations to get it happening are......

      Enhance the regulatory system:
      • The Commission’s draft recommendations include introducing competition as an objective to be promoted in the building regulatory system, creating more compliance pathways for a broader range of key building supplies, and making it easier for designers and market participants to use and adopt new or competing building supplies.
      • It also considers that better engagement with Māori is key to achieving their aspirations and ensuring that Māori perspectives are better reflected in the building regulatory system.

      Support sound decision-making:
      • In addition, the Commission makes draft recommendations directed at the decision-making behaviours of designers, builders, and building consent authorities involved in implementing and applying the regulatory system. This includes identifying and developing methods to centralise information sharing about key building supplies.
      • The current MBIE-led review of the building consent system may provide a pathway for further policy development in relation to draft recommendations relating to the regulatory system.

      Address strategic business conduct:
      • Other recommendations are directed at the strategic business conduct that the Commission has identified as affecting competition in markets for key building supplies. This includes recommendations relating to quantity-forcing supplier-to-merchant rebates and use of restrictive land covenants and exclusive lease arrangements.
      • These initiatives aim to discourage conduct that may harm competition and ensure the rules about the misuse of market power and other conduct are understood, and are appropriately addressed.

      What's in bold is 'woke' - shame the CC didn't think it necessary to include the need for better communication with ALL citizens and residents.

      Will the recommendations turn into actions?

      Cheers,

      Donna




      SEARCH PropertyTalk, About PropertyTalk

      BusinessBlogs - the best business articles are found here

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      • #4
        Yawn. I suspect this will end up being yet another report which the Government of the day will "cherry pick" a couple of recommendations for action and that will be that.

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