Yesterday the Commerce Commission launched a new website for the construction industry. The commission saw the need for a user-friendly guide specifically tailored for construction businesses and workers to understand the laws that apply and what constitutes acceptable conduct.
The wider construction sector is incredibly important to New Zealand’s economy for a number of reasons. Estimates suggest that we are on the brink of the largest construction boom in New Zealand for 40 years, part of which of course is due to the Canterbury rebuild but also to high levels of activity in Auckland. Overseas experience indicates that the sector is particularly susceptible to cartel, or price-fixing conduct, mainly due to structural characteristics of many construction markets.
Ensuring there is sifficient competition is important for an efficient economy and may not be completely understood by many in the construction industry, as highlighted by our post about the Carter Holt Harvey settlement.
This website should be a valuable resource for the industry moving forward.