Good evening. Thank you for inviting me.

I had the pleasure of attending your stakeholder function last month where I got up to speed on some of the key issues facing members of your federation.

I hope to meet more of you this evening while taking the opportunity to outline what the Government is doing to help lift the building and construction sector out of recession.

• Boosting the economy

The Government is committed to supporting the civil construction and general contracting industry.

The recent Budget demonstrates that commitment. The millions of dollars earmarked for infrastructure investment represents a much-needed funding injection.

• $523m will be spend on building and upgrading schools

• $1bn is to be spent on state highways over the next three years

• $125m will be invested in new and upgraded state houses, and

• $50m has been earmarked to the national cycleway network.

I believe targeted investment in key projects like this will make a real difference.

But the Budget contained other good news for the building sector.

• Insulation and heating fund

My colleague the Minister of Finance announced details of a home insulation and clean heating fund worth $323.3m.

This will be welcome news to thousands of Kiwis who have had to put up with poorly insulated homes.

The renovation of existing homes in this way will boost the building sector at a time when fewer new homes are being constructed.

But this government is combining an economic stimulus package with fiscal caution so that future generations are not saddled with debt repayments. This is the right way to maintain our long-term prosperity.

The Government's focus over the next 12 months will be rebuilding business confidence which will preserve existing jobs and create new ones.

• Small businesses in New Zealand

Small businesses which contract their services are the lifeblood of the New Zealand economy.

Many of your members are small and medium size enterprises.

Your survival depends on you remaining competitive and in a downturn like the one we are currently experiencing tough decisions have to be made.

This government recognises the tough environment in which you operate and is committed to supporting you where ever it can.

New Zealand is a nation of small firms. In fact, they make up 97 per cent of all businesses.

The construction industry in particular relies heavily on small and medium size enterprises, with firms with fewer than 20 employees accounting for more than 98 per cent of all firms in the industry.

• Government assistance

Some of your members may benefit from the Small Business Support Package announced earlier this year which expanded advisory services, including an 0800 helpline.

Firms will also able to get a ‘health check' so their current situation can be assessed along with a subsidised mentoring service which could help guide struggling enterprises through difficult times.

That package also included tax changes aimed at easing cash-flow problems.

In addition the Government's dedicated business website business.govt.nz has been updated to contain tailored information at a time when I may be most needed.

However, it's worth remembering that despite all the difficulties, New Zealand remains one of the best countries in the world to do business.  Last year, the World Bank's Ease of Doing Business Survey once again placed New Zealand second in the world.

I want it to stay that way. To do that we need to remove unnecessary regulatory burdens.

• Building Act review

The Government is determined to cut red tape in your sector and get rid of unnecessary rules and regulations that add cost and little value.

A review of the Building Act is underway and a bill to streamline the Resource Management Act is progressing through Parliament.

The first step streamlining the Building Act is nearing completion.

The Building Amendment Bill will streamline the building consent process for house designs to be replicated on a substantial scale and streamline the process of making minor alterations to work already consented.

It also makes a project information memorandum voluntary, saving time and lower building costs. 

While the Bill is a start, it doesn't go far enough to address the compliance issues facing contractors. 

The Government will therefore be reviewing the Building Act 2004 to drive down the regulatory costs associated with building without compromising building quality. 

The terms of reference for the review are currently being finalised but will cover a number of issues including the risk and liability framework and a reassessment of what needs to be consented based on actual levels of risk and complexity.

In addition, the Government will be looking at a number of non-regulatory ways to improve performance, such as supporting councils to work smarter using technology and putting greater focus on information and education, so people make informed choices rather than having them made for them

And I want to see better outcomes from the increased investment in trade training.

• Resource Management Act

It is important to the Government that legislation impacting on your sector is aligned. 

In this regard, the Resource Management (Simplifying and Streamlining) Amendment Bill is also making progress.

The bill will cut through suffocating red tape for Kiwi homeowners, businesses and farmers while safeguarding the environment.

The first reform phase was about addressing the excessive bureaucracy, costs and delays of the RMA while safeguarding the environment.

That Bill is progressing well through Parliament and expected to be passed into law in July.

Further reforms are needed to improve the economic and environmental outcomes of the Act.

• Urban and productivity taskforces

While this regulatory reform is underway, other more strategic work driven by the industry also continues.

Two taskforces with a membership made up of representatives from the building industry among others were set up last year to look into two key strategic issues facing the sector.

The first has focussed on how to improve the productivity performance of the building and construction sector, the second on improving the performance of our cities by supporting improved urban development.

The Productivity Taskforce, looked at how productivity in the sector could be increased, with an initial focus on skills and on Government purchasing arrangements.

Meanwhile, the Urban Taskforce examined what can be done to remove barriers to successful urban intensification and growth with a focus on Auckland

Sector leaders, together with senior Government Ministers, will be discussing the findings of these taskforces at a construction leaders' forum next month.  I expect these discussions to lay the platform for actions both the industry and Government can take to lift the performance of the sector.

• Closing remarks

This Government is not sitting on the sidelines watching the recession take its toll on kiwi businesses.

It is working hard on your behalf to ensure New Zealand is able to maintain a strong business sector so that operators like you are well-positioned to grow when recovery comes.

Thank you.