Wellington, April 14, 2019
The Government and Construction industry leaders have today signalled a shared commitment to transform New Zealand’s Construction Sector.
Prime Minister Jacinda Ardern said that the Construction Sector Accord is a new way for Government and industry to work together to create lasting, positive change in the Sector.
“The wellbeing of New Zealanders is intrinsically linked to safe, durable and affordable homes, buildings and infrastructure. To meet the future needs of New Zealand, both Government and industry recognise that we need to work differently,” she said.
Building and Construction Minister Jenny Salesa said, “The Construction Sector Accord sets out an agreed vision, the outcomes we want to achieve and the priority work areas we will be focusing on to address many of the challenges the Sector is facing.”
Jointly developed by Ministers, Government agencies and industry leaders from across the Construction Sector, the Accord offers a unique opportunity for industry and Government to partner on a range of commitments and initiatives to transform the Sector.
It also includes a pledge to hold each other accountable to the Construction Sector Accord.
Ms Ardern said that the government and the Construction Sector jointly identified priority areas.
“The Government will lead where it can have maximum impact such as better procurement practices, improved Government Construction pipeline management, and stronger building regulations. Government agencies already have a significant programme of work underway to support these aims,” she said.
Ms Salesa said that industry representatives have identified the need for enhanced leadership and collaboration within the Sector.
“Better alignment will support the other industry-led priority work areas of improving businesses performance and promoting a culture of trust between all parties in the Construction eco-system. Industry and Government will work together on a further four priorities which are to expand workforce capability and capacity, rebalance risk, improve health and safety and boost the supply of affordable and durable housing,” she said.
Ms Salesa said that strengthening the partnership between industry and Government will help in changing to a more productive, innovative and resilient Construction Sector.
In the next stage of the Accord process, industry will work with Government to develop a more detailed plan for commitments to transformation, she said.
Read more about the Construction Sector Accord here: www.Construction accord.nz
Auckland Mayor welcomes Accord
Auckland Mayor Phil Goff welcomed the Accord, saying that it will help to increase the performance of the Construction Sector and lift the pace and scale of housebuilding in Auckland and New Zealand.
“Agreeing a set of principles between central government and the Construction industry to work together and find solutions to critical issues in the Sector will help create a more productive and resilient Construction industry, and lift the pace and scale of housebuilding in Auckland and New Zealand.
“I am pleased the government has picked up recommendations from Auckland’s Mayoral Housing Taskforce including addressing skills and labour shortages, sharing risk and ensuring a pipeline of work to help the Sector flatten out the peaks and troughs of building activity that constrain employment opportunities in the Sector,” he said.
Mr Goff said that a high performing Construction Sector will benefit all, as it would deliver more new houses, which Auckland and other high growth cities desperately need.
“The Construction Sector employs over a quarter of a million workers and accounts for 7% of New Zealand’s GDP. Just as my Mayoral Housing Taskforce got industry and local and central government around a table to develop solutions to supply-side constraints holding back house-building in Auckland, I expect the government’s Construction Sector accord will build on that work and help deliver more houses in Auckland and New Zealand,” Mr Goff said.
Better procurement practices and improved pipeline management
Improved building regulatory systems and consenting processes
Enhanced industry leadership, collaboration and organisation
Better business performance
Improved culture and reputation
Shared by Government and Industry
Grow workforce capability and capacity
Better risk management and fairer risk allocation
Improved health and safety at work
More houses and better durability