NZ govt reviewing import duties on home building materials

[WELLINGTON] The New Zealand government said yesterday that it is considering cutting import duties on home building materials in a bid to help bring down the country's soaring house prices.

"Building materials costs are too high and can be as much as 30 per cent more in New Zealand than in Australia according to the Productivity Commission. The 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," Housing Minister Nick Smith said. "I worry that high duties on some imported building products, combined with limited competition in New Zealand is allowing excessive margins by building product manufacturers."

Mr Smith and Commerce Minister Craig Foss released yesterday an options paper outlining possible measures to curb the cost of house construction.