9. Question No. 9—Commerce and Consumer AffairsJAMIE STRANGE (Labour—Hamilton East) to the Minister of Commerce and Consumer AffairsQuestion No. 9—Commerce and Consumer Affairs9. JAMIE STRANGE (Labour—Hamilton East) to the Minister of Commerce and Consumer Affairs: What recent reports has he seen regarding competition for residential building supplies?Hon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs): Today the Minister for Building and Construction the Hon Dr Megan Woods and I were delighted to receive the Commerce Commission's final report on the building supplies market study. The commission's report found two key factors negatively impact competition in this crucial sector: incentives that favour familiar building products in the building regulatory system and quantity-forcing rebates. These things mean it's harder for alternative products that offer consumers a keener price or more choice to get into or expand in the market. We welcome these findings and we'll consider the recommendations to understand what changes are necessary to help increase competition and ultimately bring down costs to consumers.Jamie Strange: How will the recommendations make a difference for everyday Kiwis?Hon Dr DAVID CLARK: We know that market studies improve competition and competition improves prices. Low levels of competition hurt everyday New Zealanders across the board—at the pump and at the checkout. With building supplies we pay higher prices because of a lack of competition. The commission has suggested changes including to the current regulatory settings to improve competition among building suppliers. These changes are expected to support better prices quality range and innovation for New Zealanders over time.Hon Gerry Brownlee: Name just one.Hon Dr DAVID CLARK: Take a question Mr Brownlee—take a question.SPEAKER: Order!Hon Dr DAVID CLARK: Responding to an interjection.SPEAKER: Don't.Jamie Strange: What other initiatives did the Commerce Commission highlight as a way to improve competition for building supplies?Hon Dr DAVID CLARK: I'm pleased to see the Commerce Commission noted the actions taken by the Government to alleviate the plasterboard shortage earlier this year. This includes the ministerial plasterboard taskforce set up by the building and construction Minister Dr Megan Woods and guidance to the sector on how to substitute plasterboard. Taken together these actions resulted in more plasterboard being in the market. The commission's view is that the measures could be considered for a wider range of key building supplies to better support competition.Jamie Strange: What reaction has he seen in response to the report?Hon Dr DAVID CLARK: More good news: I'm pleased to see there's already been some preliminary moves to improve competition by dominant players in the building-supplies market. Winstone Wallboards announced just this morning that it will discontinue the use of quantity-forcing rebates. It's hard not to see this as a response to a key recommendation in the Commerce Commission's report. I think the House can see there is real merit in putting the spotlight on a sector through a market study process. While the Government immediately starts work to explore the recommendations there's nothing stopping market players from making moves right now that will improve competition in the market.