Venue: Wairakei Resort, Taupo
Time: 9anm, Wednesday, 14 March 2007

Dr Wolfgang Scholz, Secretary-General of the Pacific Council of Structural Steel Association; Dr Charles Clifton and Mr Clark Hyland, chairman and secretary, respectively, of the Pacific Structural Steel organising committee; members of the Pacific Councils of Structural Steel Associations from New Zealand and abroad; ladies and gentlemen.

It is a pleasure to be here with you this morning, and to have the honour of opening the Pacific Structural Steel (PSSC) 2007 Conference. I would like to extend a special warm welcome to our overseas guests.

As you know, this conference is a particularly special landmark in the history of the PSSC. It has been nearly 21 years since the inaugural Pacific Structural Steel Conference was held in Auckland, and this conference marks the second time that New Zealand has hosted the event.

That first conference in August 1986 created a forum where structural steel researchers, industry and educators could come together and through their co-operation, forge a stronger path for the sector. 2007 carries on that fine tradition.

Over the next three days you are going to have the chance to consider more than 100 papers from authors from 14 countries, and be addressed by three internationally renowned keynote speakers.

That makes this a very considerable gathering of intellectual firepower, and I have no doubt that your thinking and your discussions will do justice to the strength and durability of the product you work with – structural steel.

In the past 20 years there has been a major shift in the importance of structural steel in New Zealand. It is hard to believe now, but in 1985, structural steel had no market share in multi-storey construction, and was struggling to hold its position in the long-span single-storey market.

I can see from the website of the Heavy Engineering Research Association that structural steel now enjoys some 40 percent of the multi-storey construction market and 90 percent of the long-span single-storey market. That is a remarkable achievement.

Not only has the structural steel industry firmly secured a top place in the New Zealand construction industry, you are now also leaders in the research field. There have been significant gains in research and design systems for fire and earthquake engineering, and work is ongoing to develop composite structures that better suit lighter gauge steel.

It is amazing how much progress the past 20 years have brought. Just imagine, what the next 20 years will bring.

I can tell you now that we are indeed heading into a brave new world. The New Zealand Government believes New Zealand can aim to be the first nation to be truly sustainable and that we can aspire to be carbon neutral in our economy and way of life. Reducing our carbon emissions, being environmentally sustainable and energy efficient clearly poses challenges for us all – your industry included.

We are living in a world where environmental sustainability will increasingly be at the forefront of our decision-making. There is strong public support for better energy efficiency and conservation, increased use of 'green' materials and less carbon emissions from buildings. Make no mistake - the move towards 'green buildings' will be driven by a combination of consumer demand, market competition and Government regulation.

Steel is a strong and ductile material. Many steel-framed buildings are now being produced in New Zealand, often combining with other materials, such as concrete, to maximise and complement the best properties of each.

Steel has other advantages. Much of the work involved in steel structures can be prefabricated off-site, reducing site time and labour costs, and improving quality as off-site work can often be carried out in better conditions.

Steel is literally at the very heart of building and construction around the world, and will continue to be so. But clearly you face some challenges ahead as the world moves more and more into the reality of energy efficiency and sustainability.

Steel is energy-intensive to produce, but its strength makes it a key ingredient in our goal for a sustainable future. As urban populations intensify, buildings that go 'up' rather than 'out' will increasingly become a way of conserving space and resources. Urban sprawl does not necessarily suit the demands our modern lifestyles either. Larger and taller buildings will be required in future, and the fact we can use steel in the efficient designs for such structures means it will increasingly contribute to New Zealand’s sustainable development programme.

And, of course, internationally there are many examples of ‘green’ steel buildings. The world-leading Swiss Re Tower, commonly known as "The Gherkin" in London has a double-skin glazing system that optimises light and space and is very energy efficient. Challenges for steel are fire protection and corrosion although these can be dealt with.

Also from a sustainability perspective, a concept known as the 'embodied energy' of buildings and their components has emerged overseas in the building sector.

I understand the concept holds that because, (as shown by the Stern Report), a good deal of carbon emissions arise directly or indirectly because of the way we build and use energy in buildings, the full carbon emissions impact of buildings should be considered.

Every building component, even the tiniest screw, has a carbon cost - simply the amount of greenhouse gas emissions that were created in making it. In a truly ‘green’ building, that cost might be included in the calculation of the building's overall energy efficiency, as well as the actual cost of running it.

The theory holds that the calculation of the total energy cost of buildings should include the projected lifetime energy consumption, the so-called embodied energy of the materials used in a building's construction, and the relative expected lifetime of the building.

Using that measure, it could be argued that structural steel brings considerable advantages. Structural steel, in particular, is relatively easily salvaged at the end of a building’s life, and can be reprocessed into ‘virgin’ product, meaning that it is not steel that is significantly filling our landfills.

Indeed, it is a full cycle, insofar as a significant proportion of the material used to manufacture reinforcing steel is recycled steel product, such as old car bodies, thereby returning steel from a waste stream into a valuable construction product.

I also note there is significant practical work being undertaken around sustainability and environmental issues in New Zealand, and I encourage that, including the work of Pacific Steel, in running New Zealand’s largest steel recycling operation. I urge you to keep raising the bar even higher.

All of these developments around sustainability are about smart thinking and that is what is also at the heart of the transformation of the New Zealand building and construction sector. The New Zealand delegates here today will be very aware of the suite of reforms that the Government is putting in place.

In fact, the building and construction sector is undergoing perhaps the biggest transformation in New Zealand's history – greater even than the shifts of the post war boom or the late 1970s. This transformation is being led by the Government on the policy and legislation front, but it is really being driven by both industry and consumer demand.

Changes to the sector

People want better buildings. And the building industry wants an environment in which they can supply them. And that really is at the heart of all these changes.

However, to get there involves social, economic and technological development in equal measure, development that must have innovation, smart problem solving, and co-operation across the sector to succeed.

So where are we at this moment? And what do we need going forward? Well 2007 will be a watershed year in the history of building and construction in New Zealand. Many of the systems set up by legislation will come online in the very near future – indeed, come November of this year there will be:

·Registration for the first set of building sector occupational licensing classes. A total of 13 licenses will be rolled out progressively from this November, starting with the design, site lead and carpentry classes. Starting on a voluntary basis to enable testing, the new regime will help ensure that homes and buildings in New Zealand are designed and built right the first time.

·The auditing and accrediting of Building Consent Authorities (BCAs). Local authorities that want to stay in the business of issuing and approving building consents will have to be registered as BCAs by November 30, this year.

·A product certification scheme will be in place

·Along with the core Building Act reforms, there will likely be new legislation on the housing front, including renting, multi-unit complexes, and changes to dispute resolution models

·Speaking of dispute resolution, the reforms rolling out from the Weathertight Homes Resolution Services Act 2006 will be in place by 1 April 2007. The end result will be faster resolution of claims, so affected homeowners can get compensation from the liable parties, get their homes repaired and get on with their lives.

·A pilot financial assistance scheme involving market rate loans and loan guarantees will also be in place, to help claimants get their homes fixed first and argue liability second.

·The Government is also investigating home warranty insurance options as another step in protecting homeowners and future proofing the industry

The demand for good buildings must be driven by the people who live in them and the Government is investing in several consumer education programmes to make sure New Zealanders have the information they need to make informed decisions – this covers everything from what to look for when buying a home to protecting investments made in housing stock.

To build the sector we must look across Government, industry, and consumers, because the quality of our future buildings and lifestyles depend on a unified approach. Indeed, it could well be argued that it was the failure to engage in this kind of unified thinking that has brought many of the issues the sector has faced over the years.

Energy efficiency

The Government also plans to introduce measures to improve the energy efficiency of buildings later this year, ahead of the completion of the Building Code review.

Late last year, we announced proposals around energy efficiency as part of the Government's programme to reduce the amount of energy required to heat new homes, to heat water in new and existing homes, and to light, heat, ventilate and air condition commercial buildings.

The work programme consists of four main initiatives, which are:

·Higher thermal insulation performance requirements for new homes
·Making it easier to install solar water heating systems
·Improving lighting in commercial buildings
·Improving heating, ventilation and air systems in commercial buildings

We have publicly consulted on the first three measures, and the results will be provided to the Government at the end of this month. Consultation on heating, ventilation and air conditioning systems, and domestic hot water systems will begin shortly.

Building Code Review

The broader work behind the Government’s energy efficiency initiatives is, as I mentioned, the full review of the New Zealand Building Code, which is due to be reported back to me in November.

Our Building Code is performance-based, and was world-leading when it came into force in 1992. It stresses objectives rather than requirements. The reason for this is to ensure that buildings meet certain performance standards without sacrificing innovation. I am sure your industry in particular appreciates the flexibility this allows.

Public consultation to date has clearly shown the key issues and expectations as:

·the need for leadership and ‘lifting the game’ for building performance requirements
·a desire for greater sustainability and energy efficiency
·a stronger focus on affordability
·an awareness of the differing needs of groups within the sector
·the need to improve the interface between building legislation and the Resource Management Act, which is our main piece of legislation setting out how we can sustainably manage our environment.

The feedback has been invaluable in ensuring that the review is on the right track.

The review will change what we build and the way we build, because we expect a lot more from our buildings than we did even 15 years ago. There have been significant advances in construction technologies and in our knowledge of building products and performance. A modern Code must reflect that.

In many respects, the performance-based ethos behind the Code is about being innovative and raising the bar in terms of quality. That requires, above all else, top line analysis and new research.

And that is where gatherings such as this one today come in: you are the very professionals and experts who will move building and construction forward. You are key players in ensuring that we have good evidence for the way in which we build safe structures, safe buildings, and safe homes.

In a nutshell, our regulations rely on research such as yours. You are helping lead the way to rebuilding a world-class building and construction industry in this country.

Big Picture – BCA accreditation, licensing

Of course a performance-based Building Code cannot stand alone. It relies on a whole system of many parts that come together as one. In many respects, it is like a jigsaw puzzle.

A Code is only as effective as the people who ensure it is being followed. That is where a good consenting process comes in - hence the Government's introduction of a Building Consent Authority auditing and accreditation process for our local councils and territorial authorities.

The accreditation and registration scheme will strengthen our regulatory building control system at the building consent, inspection and approval stages of the process. It will help ensure those who are responsible for checking our buildings are being built in compliance with the law, have done their job properly.

And further to that, we need good builders, tradesmen, architects and designers. To guarantee that we get them, we are bringing in the Licensed Building Practitioners regime, as I mentioned.

The scheme will help ensure that homes and buildings in New Zealand are designed and built right the first time. It will improve the quality of our home and building stocks, recognise and support skills development, and give consumers more confidence in the houses and buildings they buy.

Earthquake-prone buildings

I note that one of the themes of your conference is ‘Structural Steel and Natural Hazards’. A prime natural hazard that New Zealand’s building and construction sector must deal with is our frequent, and occasionally large, earthquakes.

The Building Act 2004 introduced provisions to improve the likelihood of existing buildings withstanding earthquakes, focusing on those non-residential buildings most likely to be vulnerable. Under the Act, each local authority must develop a policy reflecting the seismic, social and economic considerations in its area.

Our small country has very different levels of seismic risk in different areas – from virtually zero to ‘waiting for the big one’.

In fact, indicative of the differences within New Zealand, just last month Auckland experienced three earthquakes in one evening, with the largest being 4.5 on the Richter scale.

This was an extremely unusual occurrence for Auckland and the largest earthquake to hit our biggest city in 30 years. However, a 4.5 would barely make for water cooler discussion in the capital, Wellington.

Our approach to earthquake-prone buildings is in a sense also ‘performance-based’, with local authorities having to assess their local situation and form policy based on the likelihood of seismic events for them, and the severity of the potential impact on life and property. There is provision for consultation between local councils, and building owners and users in developing these policies.

The Department of Building and Housing is currently reviewing councils' policies for compliance with the Act.

Conclusion

As you can see, there is a strong degree of connectivity at play between the reforms that our building and construction sector is undergoing. And these reforms are dependent on good research and solid analysis.

I applaud you for the tremendous achievements the structural steel industry has made in the past 20 years, and challenge you to keep raising the bar for the betterment of the building industries of New Zealand and the wider Pacific Rim nations.

The challenges in relation to sustainability are considerable, but so are the rewards. I wish you all the best for this conference, and look forward to the building sectors in all our homelands, benefiting from the innovative ideas and solutions that are developed here.

I now declare the Pacific Structural Steel Conference 2007 to be officially open.