Housing Policy submission

SUBMISSION

OF THE

NEW ZEALAND RETAILERS ASSOCIATION

IN RESPECT OF

BUILDING FOR THE FUTURE; TOWARDS A NEW ZEALAND HOUSING STRATEGY

JULY 2004

INTRODUCTION

This summary submission is presented by the New  Zealand Retailers Association

BACKGROUND

The Association is the largest trade association involved in the retail industry in New Zealand. We represent an industry that has annual sales of $50b, and which employs some 325,000 people ( 17% of the workforce) in some 49,000 outlets spread through New Zealand. Our membership includes the major supermarket and general merchandise chains, specialised chains, traditional department stores and thousands of owner operators. We also service a number of trade groups of plumber materials suppliers, metal fastener distributors, bicycle dealers, pet shops and equestrian dealers.

SUMMARY OF SUBMISSION

The Association does not purport to have any particular expertise in the field of housing policy which it sees largely as a social issue which is largely outside of our direct field of concern. Nevertheless we have studied the document and wish to make a few observations on points arising from the proposed strategy given that our members are major suppliers to the trade.

We accept that the Government has a direct role in ensuring that all New Zealanders have access to affordable, sustainable and good quality housing appropriate to their needs. We also accept that there is a case to argue that the Government has a social obligation of providing housing assistance to lower income households that have difficulty in accessing affordable and suitable housing.

However, we do have some concerns about how housing policy is put into effect and believe there is a real need for regional councils and local bodies to ensure that they work with central Government agencies to ensure that housing policy is implemented in a co-ordinated way which acknowledges the particular needs of the various cities and towns throughout the country and which gives both the public and private sector the opportunity to make submissions on particular proposed developments. Major housing developments clearly have a major impact on the infrastructure, and, we consider it is important that good public transport linkages, suitable linkages with main arterial roads, and adequate space for appropriate commercial office and business premises are provided to ensure that the suburb or sub division does not become a socially undesirable place to live or work for the majority of New Zealanders.

We note that one of the ' areas for action ' notes that communities in Auckland and Nelson are seen to be areas where housing is under stress and how solutions are in fact being developed by the local communities in association with private and central Government, non-Governmental organisations, residents and the private sector. We believe such action reflects our concerns for a co-ordinated planning approach to housing policy and endorse the view contained in the discussion document that ' the wider role of employers in improving accessibility to affordable housing should be assessed, in consultation with business communities at the local level".

Our main commercial interest lies in the proposal that improved housing quality is best developed through a strengthened regulatory framework and better standards. The Association did not make submissions on the Building Bill. However, some of our trade groups who are involved in the supply of plumbing materials supplies and metal fasteners, did so as part of the Building Industry Federation. If this particular strategy is seen to assist builders to implement better standards in new housing construction it warrants support as a number of our members are direct wholesale suppliers to contractors involved in new housing construction.

Other non Government agencies such as Standards New Zealand can, we believe, also play a more significant role in the compilation, review and management of building standards. Agencies like this have the ability to draw upon specialised industry skills both from within the public and private sectors of the New Zealand, and, Standards New Zealand can consequently make a very positive contribution to improved building standards which must ultimately reflect in improved standards for new housing construction throughout the country.

We firmly believe that a vibrant housing sector is interrelated to the economic well being of retailers and their staff. We note that the paper states the building consents increased by 25% for the year ended August 2003 with new housing consents reaching 29,500 over the past year, compared to an historical average of around 20,000 units per annum. While direct comparative figures are not available we feel it is important to note that furniture retail sales totalled $1.3b, appliance sales $1.9b and hardware sales $0.9b in 2003, and a considerable part of these sales would have been for both new housing construction in both the private and public domain. The hardware sales figure would probably have been higher as sales by outlets classified as wholesalers are not included in the traditional retail series.

In summary, the Association considers that New Zealand business groups do have a constructive role to play in the development of some of the strategies of the Governments housing policy. We suggest that it may be desirable to form some sort of Overview Group that can assist in the development of a whole of Government approach to this policy development. Such bodies exist in other fields of government policy and we would be more that happy to work with such a Group if it was seen to have merit.

NZ Retailers Association

July 2004