Builders’ supply problem

Press, Volume CXIII, Issue 33251, 14 June 1973, Page 3

Builders’ supply problem

(N.Z. Press Association) WELLINGTON, June 13. Increased building costs indicated the costs of delays caused by the difficult supply position, said the Building Industry Advisory Council yesterday in submissions to the National Development Council. The council, commenting on the N.D.C.’s recent interim report on stability in

the building and construction industry, said the increased costs did not represent increased profit margins for builders. “WORSE NOW” Supplies had deteriorated since the interim report was written, said the Building Council. Apart from shortages caused by high demand, consumption of building supplies had arisen from favourable construction weather throughout the summer. “The smaller builder without established supply lines has been most affected,” the report said, "but even well-

established builders have been finding supplies tighter.” There was evidence that lack of building supplies had led to builders and building workers seeking alternative employment, the report said. Usually winter working conditions eased demand, but this winter a substantial backlog of unsatisfied demand was expected to keep the supply industries under pressure. LAND SPECULATION The Building Council said it agreed with the report that some measures were necessary to inhibit land speculation. But, in the long term, the real answer was to ensure that adequate serviced land was available. Improvements could come from reducing delays in land transfer offices, and reviewing policies on rating relief for farmers with land zoned residential. The Building Council said the industry was being seriously affected by industrial unrest. “Recent problems with the cement supply in Auckland are typical, but long-standing unrest of the type experienced in Kawerau ties up a large work force which could be better used if industrial problems could be resolved.” LOCAL BODIES It was concerned about further moves by local authorities which would add to building costs. There appeared to be no controls over charges made by them for reserve contributions, building permits, inspection fees, and the like. Industry training should take into account that career prospects in building and construction offered insufficient opportunity for advancement. This had led to a shortage of professional or technically trained people in the industry, and particularly a shortage of people able and willing to take responsibility. The N.D.C. will send the Building Council’s comments to the Government for consideration in conjunction with the interim report.