Govt supports residential house building by allowing manufacture of building supplies

Building and Construction Finance

The Government has agreed to allow some building product manufacturing to take place in Auckland during Covid lockdown to support continued residential construction activity across New Zealand.

“There are supply chain issues that arise from Alert Level 4 as building products that are manufactured domestically are mostly manufactured in Auckland. This is particularly the case for many items critical to residential housing construction, such as insulation, roofing and plasterboard,” Grant Robertson said.

“Tonight’s move to Alert Level 2 outside Auckland means residential construction activity can largely resume in New Zealand. However, the constrained availability of building products will be an issue and that is why the Government has acted.

“On the basis of advice from MBIE and after consultation with the sector, Ministers have decided to make changes to the Health Order to allow the manufacturer of some building products to resume In Auckland under Alert Level 4; plasterboard, gypsum plaster, coated roofing steel and insulation,” Grant Robertson said.

“These are the products where there is the greatest concern about supply. We have set out criteria to assess whether manufacturing activity for certain building products can take place at Alert Level 4,” Poto Williams said.

“The products must be a critical component of residential construction, there is limited supply and manufacturers must have health and safety measures in place to minimise the risk of COVID-19 transmission. Plasterboard, gypsum plaster, coated roofing steel and insulation meet this criteria.

“With housing consents at all-time record highs, this change will help ease some of the building supplies constraints and support the ongoing building of much-needed houses in New Zealand in the biggest housing build programme since the 1970s,” Poto Williams said.

“The work will be undertaken with the minimum number of staff safely required. This work will be undertaken under Alert Level 4 rules.”

The change to the Health Order to enable this to happen will be made over the next 48 hours.  MBIE will manage the process of companies who are eligible to undertake this work.