9. Building and Construction Industry—Government Policy and Skills ShortageANDREW BAYLY (National—Hunua) to the Minister for Building and ConstructionBuilding and Construction Industry—Government Policy and Skills Shortage9. ANDREW BAYLY (National—Hunua) to the Minister for Building and Construction: Does she agree with the comments of Property Council Chief Executive Connal Townsend that there is a perfect storm" in the building and construction sector that includes issues with cost escalations allocation of risk lack of skills and problems with the Building Act 2004?Hon JENNY SALESA (Minister for Building and Construction): There are a number of longstanding issues affecting the building and construction sector including the allocation of risk lack of skilled people building costs and the Building Act. My colleagues and I have a work programme to address these issues.Andrew Bayly: What new policy initiatives has she announced to prevent the loss of skilled tradesmen leaving New Zealand for Australia where there is a boom in construction and infrastructure projects?Hon JENNY SALESA: What this Government has done—and I chair this—is we have convened nine Ministers to look at and to address construction skills in general. We are at the moment seeking advice from industry. We know that these issues are longstanding and we know that the Government does not have the answers on its own. We are willing to make sure that we are training enough people. I have not yet announced a new scheme to stop people from going to Australia but we are looking at training enough of our own people to build our own houses.Virginia Andersen: What is the Government doing to lift skills in the construction sector?Hon JENNY SALESA: The ministerial group that we've established the construction group—we have a draft construction skills action plan. We're out now asking industry because the nine Ministers together have come up with five ideas—three of them are brand new; two of them are expansions of ideas—and it is all to make sure that we are training up our own people. The reality is that in the building and construction sector the majority of the workers in the sector—256000—are New Zealanders. So in the long term the long-term solution has to be that we train up our own people to build our houses including KiwiBuild.Andrew Bayly: What new policy initiatives has she announced to facilitate the introduction of appropriate new products into the building and construction sector?Hon JENNY SALESA: I have not yet announced a new policy in this area. However this is part of the area of priority for work for me as the Minister for Building and Construction. The Ministry of Business Innovation and Employment (MBIE) is currently—right now—out consulting with the sector because we are looking at a products review. The policies that MBIE will present to me as Minister will come in the next few months. So I will be presenting a paper to Cabinet in the next few months and after then we will make some policy decisions.Andrew Bayly: What new policy initiatives has she announced to amend the Building Act to make it more fit for purpose?Hon JENNY SALESA: I have not yet announced a new policy to do with the Building Act but that is because we have a big work programme in the building and construction sector. We are looking at reviewing products right now and the regulations. We are looking at reallocation of risk and liability. There are several other work programmes that we're currently doing with MBIE in terms of me being Minister for Building and Construction. We will look at all of that because we are looking at a whole-of-system approach. We don't want to be introducing new legislation that we then have to come in and amend and amend or amend later on. We want to get it right the first time.SPEAKER: Just before I call the next supplementary can I ask the—I think it's Marja Lubeck up the back. I know she was waving more fingers than might be normally considered offensive but I would ask her not to do that again. Thank you.Andrew Bayly: Why was no money allocated in the 2018-19 Budget for additional skills training for the construction sector?Hon JENNY SALESA: The construction skills action plan that I expect to take to Cabinet in the next few weeks—a lot of the new things that we're proposing will be paid for but it will be paid for under baseline. Any new money that we would expect in terms of training new people will probably be considered in the Budget process of 2019.Hon Chris Hipkins: Can the Minister confirm that she was involved with an announcement yesterday that will directly contribute to an improvement in the level of skills in the workforce in the building and construction sector?Hon JENNY SALESA: Absolutely. The Minister of Education the Hon Chris Hipkins and I announced the micro-credentialing skills system which will allow us to ensure—Hon Gerry Brownlee: Lowering of standards.Hon JENNY SALESA: —that we're building these houses as fast and as efficiently as possible.SPEAKER: Order! Order! Now I do realise that the member has some expertise in the area but I would much prefer him to make his contributions from his feet rather than his seat.Hon Gerry Brownlee: Is that an offer?SPEAKER: If the member wants to have a question go for it."