Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 08 September 2015. Volume:708;Page:6305. Text is incorporated into the Bound Volume.]10.PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Housing: Why did he say that the building materials industry “needs a shake-up through increased competition and greater transparency to ensure Kiwi families can get access to more fairly priced building materials and homes”?Hon Dr NICK SMITH (Minister for Building and Housing): I said it because it is true. It is why in Budget 2014 the Government removed tariffs on many thousands of building products. It is also why we announced last month changes to anti-dumping duty law. It is why we have a bill before Parliament reforming the standards system because part of the problem is enabling the timely approval of imported building products. And it is also why we are working through the complex liability issues in line with the recommendations by the Law Commission which noted that because councils face high liabilities it should be capped. Then there is resistance from councils to innovative building technology which reduces competition. I can assure the member that we are very open to competition from products with Chinese-sounding names.Phil Twyford: Why has he done nothing to address the anti-competitive rorts in the building supplies market that are adding tens of thousands of dollars to the cost of a new home even though the Productivity Commission told him all about these rorts 4 years ago?Hon Dr NICK SMITH: This sounds like a bit of a rerun of the Shane Jones claims in respect of supermarkets which came to absolutely nothing. If the member has evidence of anti-competitive behaviour occurring in the building industry then I am happy to receive the information and to take it up with the Commerce Commission. I note that the Commerce Commission did an extensive inquiry into the issue around plasterboard. Apart from the issue around the duties which the Government has addressed it was satisfied that there were no breaches of the Commerce Act.Phil Twyford: Does he agree with the Prime Minister who said yesterday: “if people really feel as though the system isn’t delivering for them … there’s a number of avenues they could follow”; if so in the case of plasterboard what are the avenues open to people when Fletcher’s Gib board has 94 percent of the market and when it has sweetheart deals with the four major retailers—Mr SPEAKER: Order! Either of those two supplementary questions the Hon Dr Nick Smith.Hon Dr NICK SMITH: I will draw the member’s attention to the very comprehensive report by the Commerce Commission into the specific issue of plasterboard. I would also note that since Budget 2014 when we removed the anti-dumping duties we have seen almost a doubling in the amount of plasterboard imported from Thailand. I would also note that one of the key issues is actually both designers and councils continuing to specify the tried and true and that is why the Government is making changes to the Standards Act and to liability laws in order to encourage a greater and wider use of alternative plasterboard products.Phil Twyford: Does he think that these anti-competitive kickbacks rebates and sweeteners like Fletcher’s flying 150 Auckland builders to the Bledisloe Cup match in Sydney have anything to do with the fact that the German company Knauf the world’s second-biggest supplier of plasterboard was not able to put a dent in Fletcher’s 94 percent market share and has given up?Hon Dr NICK SMITH: I am interested in the principles of members opposite who find it obscene for builders to get free rugby tickets when I have noted those members at rugby games all the time when they take free rugby tickets.Phil Twyford: Has he advised the Minister of Commerce and Consumer Affairs that the Commerce Commission needs more teeth given that it confirmed all of the rorts and kickbacks are in fact going on in the building supplies market but it does not have the powers to do anything about them?Hon Dr NICK SMITH: I would draw the attention of the House to the wild claims that were made by Shane Jones in respect of the supermarket circus which the Commerce Commission found came to nothing when it investigated them. I simply say to the member: put up the detail. I am happy to take a complaint but just more rhetoric does not cut the mustard.