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Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 12:11 am
by deadduck
The government did enter the market.

It was called Kiwibuild

It was pretty successful (according to Phil Twyford)

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 12:27 am
by Flockwitt
It would be interesting to see what would happen with a government initiative in conjunction with the warehouse. The Warehouse said they’d looked at a direct sourcing model for materials and a jv public / private might be a feasible model.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 12:59 am
by Ted.
Fat Old Git wrote: Mon Mar 29, 2021 12:09 am
Ted. wrote: Sun Mar 28, 2021 11:52 pm
Fat Old Git wrote: Sun Mar 28, 2021 7:45 pm
Ted. wrote: Sun Mar 28, 2021 10:58 am It's not about you being happy with it mat all FOG.

I might be happy to take risks at work off a ladder, have done so for years and being quite happy doing it. New laws came in, those laws set much higher standards of work place health and safety and cast a wider net in relation to responsibility and liability. I now don't do goosey things off a ladder, mostly, I set and example, write my SSSPs and task analysis, get buy in.I do that because I see the sense in them fir the industry and society in general, even though I see a lot of box ticking, especially by corporates. The funny thing is, at home I cans do pretty much as I like risk wise, with impunity except to my own person.

I could give you examples under strengthened consumer protections as well. The point is, if you haven't already got it, once you involve other people in your enterprise, higher standards are expected.

There's a very good reason tenants don't ventilate homes. It's very expensive.

Ventilation, opening a window, using an extractor is pretty dumb in the colder months. It negates the shiny new insulation, it will bleed energy far more effectively than insulation can retain it. The best thing you can do is make a home more air tight, that is where the most energy is lost by far, then control moisture by installing an all of house ventilation system with energy recovery (not one of the cruddy systems that are installed in most houses). A decent ventilation system with energy recovery is a better investment than a heat pump as far as energy gains per running cost.
I think you've missed my point Ted. Especially as I did say I was supportive of the introduction of the standards.

However, to clarify, I wasn't happy to put up with a cold damp house. The point was that the house wasn't cold or damp because of the way we managed it.

And you're comments re ventilation are just silly. You don't need to have windows open for long, or extraction on all the time to prevent a home from being damp, so you're not really negating the insulation. If you have a shower on, or a pot boiling on the stove putting lots of moisture into the air than using the extraction system while you are doing that is just sensible. HVS systems are great, but are you really suggesting that any home that doesn't have one is unhealthy? That would be the vast majority of houses in NZ, including the one I currently live in, and our rental property. Both of which are warm and dry.
They are not silly comments. Sure, you can rid most moisture from a house in 20 minutes of or so of ventilation, but you need to know what that does for energy loss how and effective that is in different times of the year/temperature+humidity=energy flow direction & moisture loading. Some research on hourly air change rates for the average house per era of construction would be enlightening.

When a house has not been specifically designed to be energy efficient, without serious modification there will be a trade off between energy use (heating in the main) and a healthy environment. It's no surprise we as a country rate poorly on the health of our homes. That's not some bullshit spouted on a forum, but a researched fact.
Ted, I haven't argued that HVS isn't the best solution or the gold standard. I'm not disputing that at all. Just that occasionally opening a window or using extraction is "pretty dumb in the colder months". The alternative is having a damp house which is much dumber than using a little bit more heating.

I've lived in both my rental property when it had less insulation than it does now, and my current home. Neither has HVS and neither were / are cold and damp. Even in winter.
Yes, opening a window occasionally is better than having damp house, however that is a very low bar.

Also, if we are dealing with an older house, you will have that many air changes per hour that opening a window or using an extractor fan will make little difference. Code damp air will be coming in regardless that you will need to heated/should be heated + relatively cold surface = condensation = mould growth. Sorry, but there is no getting away from it.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:10 am
by deadduck
guy smiley wrote: Mon Mar 29, 2021 12:31 am
deadduck wrote: Mon Mar 29, 2021 12:11 am The government did enter the market.

It was called Kiwibuild

It was pretty successful (according to Phil Twyford)
I'm talking about the rental market, with a shared equity model leading to ownership.

How would the government stepping in with virtually unlimited buying and borrowing power, and undercutting the rental market help anything unless they're building new and increasing the supply of houses.

Which is the Kiwibuild program by any other name. The only difference being they would rent out the properties while maintaining equity in the asset, potentially requiring perpetual subsidisation of the program by the government, instead of the Kiwibuild model where selling the houses further funds the building program.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:13 am
by Ted.
guy smiley wrote: Mon Mar 29, 2021 12:31 am
deadduck wrote: Mon Mar 29, 2021 12:11 am The government did enter the market.

It was called Kiwibuild

It was pretty successful (according to Phil Twyford)
I'm talking about the rental market, with a shared equity model leading to ownership.
And that is called State Advances/ HNZC/ Kāinga Ora.

State Advances and HNZC did precisely that with affordable rent to own schemes.

Unfortunately, we do not have a building industry, including supply and material production that is capable of building a lot of house to a reasonable standard, something that is a prerequisite for Kiwi Build to work. In fact we struggle to build many houses to a poor standard.

We could go into the ins and outs of that, back to Douglas, Prebble, Richardson, et al, how they rejected knowledge and gutted trades and professional industry training that no politician has managed, or perhaps tried, to bring about a recovery from. If you stop investing yet want a responsive industry that can supply quick solutions, you are probably a little insane.

Private industry, the market has been equally shit at addressing the problems. In fact, they have generally exacerbated them.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:19 am
by jambanja
Aren't the govt the biggest renters out there already
I go back to my mate who is renting to the govt already.

I was in Gisborne a couple of months ago training a work colleague and all the motels, and there are plenty of them, were booked out, I asked my colleague if there was something happening in Gizzy, and no it's all Housing NZ renting them out, same apparently in quite a few places, which really does highlight the critical shortage of stock, the govt should be encouraging people to build not discouraging them

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:48 am
by Fat Old Git
Ted. wrote: Mon Mar 29, 2021 12:59 am

Yes, opening a window occasionally is better than having damp house, however that is a very low bar.

Also, if we are dealing with an older house, you will have that many air changes per hour that opening a window or using an extractor fan will make little difference. Code damp air will be coming in regardless that you will need to heated/should be heated + relatively cold surface = condensation = mould growth. Sorry, but there is no getting away from it.
And yet I, and Booji by the sounds of it, managed to get away from it and live in properties without them being cold and damp and fill of mold. Mind you, on those occasions when we might have gotten a bit of condensation we probably dried it off with cloth and maybe gave it a quick spray with exit mold rather than leaving it for months on end.

I think you are still missing my point though Ted. No one is saying there aren't issues with many older properties, and that there isn't a lot of poor housing stock out there, or that there is no need for regulation. Just that that isn't the full story. There are ways to manage them without having the latest and greatest. No one is arguing the well insulated sealed properties with an HVS aren't the ideal.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:48 am
by Ted.
jambanja wrote: Mon Mar 29, 2021 1:19 am Aren't the govt the biggest renters out there already
I go back to my mate who is renting to the govt already.

I was in Gisborne a couple of months ago training a work colleague and all the motels, and there are plenty of them, were booked out, I asked my colleague if there was something happening in Gizzy, and no it's all Housing NZ renting them out, same apparently in quite a few places, which really does highlight the critical shortage of stock, the govt should be encouraging people to build not discouraging them
What does discouraging people to build look like?

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:51 am
by JPNZ
jambanja wrote: Mon Mar 29, 2021 1:19 am Aren't the govt the biggest renters out there already
I go back to my mate who is renting to the govt already.

I was in Gisborne a couple of months ago training a work colleague and all the motels, and there are plenty of them, were booked out, I asked my colleague if there was something happening in Gizzy, and no it's all Housing NZ renting them out, same apparently in quite a few places, which really does highlight the critical shortage of stock, the govt should be encouraging people to build not discouraging them
Yep, the amount of money this government is wasting on emergency motel accomodation is mind boggling. $330 million a year and growing (Nearly $1 million dollars everyday)
Newshub can reveal the multimillion-dollar extent of the Government's emergency motel bill and just how much Kiwis are forking out to some of the top earners.

One motel made $6 million off the Government last year, charging much more for rooms than it normally would.

In the three months to December 2017, the Government spent $6.6 million on motels. By the following year it more than tripled and just keeps growing. In the same period last year, the Government spend skyrocketed to $82.5 million on motels.

Rental prices are out of control in New Zealand, leaving many to seek emergency accommodation. Newshub can reveal the top 10 earning motels collectively raked in $40 million of Government cash in just the last year - the top three charging more than $5 million each.
https://www.newshub.co.nz/home/politics ... olicy.html

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 1:58 am
by Ted.
Fat Old Git wrote: Mon Mar 29, 2021 1:48 am
Ted. wrote: Mon Mar 29, 2021 12:59 am

Yes, opening a window occasionally is better than having damp house, however that is a very low bar.

Also, if we are dealing with an older house, you will have that many air changes per hour that opening a window or using an extractor fan will make little difference. Code damp air will be coming in regardless that you will need to heated/should be heated + relatively cold surface = condensation = mould growth. Sorry, but there is no getting away from it.
And yet I, and Booji by the sounds of it, managed to get away from it and live in properties without them being cold and damp and fill of mold. Mind you, on those occasions when we might have gotten a bit of condensation we probably dried it off with cloth and maybe gave it a quick spray with exit mold rather than leaving it for months on end.

I think you are still missing my point though Ted. No one is saying there aren't issues with many older properties, and that there isn't a lot of poor housing stock out there, or that there is no need for regulation. Just that that isn't the full story. There are ways to manage them without having the latest and greatest. No one is arguing the well insulated sealed properties with an HVS aren't the ideal.
No, it's not the full story and I haven't =claimed it is. It's not many poor housing stick either, it is the majority of our housing stock falls below developed country standards including recent builds. The fact that you and Booji accept that is not your fault, it is simply indicative that it is the norm here. The latest and greatest here is actually the minimum of what should be acceptable in our climate.

Also, why do you expect your tenants to open the windows and there wallets? I realise that all tenants aren't on the breadline, but many don't have a extra $50 or so a month necessary to keep a draughty house acceptably warm.

I'm happy to provide a Dropbox.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 2:48 am
by jambanja
Ted. wrote: Mon Mar 29, 2021 1:48 am
jambanja wrote: Mon Mar 29, 2021 1:19 am Aren't the govt the biggest renters out there already
I go back to my mate who is renting to the govt already.

I was in Gisborne a couple of months ago training a work colleague and all the motels, and there are plenty of them, were booked out, I asked my colleague if there was something happening in Gizzy, and no it's all Housing NZ renting them out, same apparently in quite a few places, which really does highlight the critical shortage of stock, the govt should be encouraging people to build not discouraging them
What does discouraging people to build look like?

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 3:20 am
by Fat Old Git
I expect the tenants to keep the property reasonable clean, or should I be installing vermin traps and bait stations so they can leave food scraps and rubbish all over the place? Or employing a cleaner on their behalf? Both landlords and tenants have responsibilities. It's not a one-way street.

Landlords at the bottom end of the scale should be spending the money to bring the property up to standard if they haven't already. Ours was already above that standard when it was introduced, despite being an older property.

Perhaps everyone should be forced to bring them up to the higher standard you are advocating, if it is indeed possible for an older house. But it probably wouldn't save their tenant $50 per month or so. Such a property would sit higher in the rental price scale than it currently does.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 3:44 am
by Ted.
jambanja wrote: Mon Mar 29, 2021 2:48 am
Ted. wrote: Mon Mar 29, 2021 1:48 am
jambanja wrote: Mon Mar 29, 2021 1:19 am Aren't the govt the biggest renters out there already
I go back to my mate who is renting to the govt already.

I was in Gisborne a couple of months ago training a work colleague and all the motels, and there are plenty of them, were booked out, I asked my colleague if there was something happening in Gizzy, and no it's all Housing NZ renting them out, same apparently in quite a few places, which really does highlight the critical shortage of stock, the govt should be encouraging people to build not discouraging them
What does discouraging people to build look like?
There's nothing in there that opinion piece suppoprts your contention. Or are you/theye claiming that investors are the only people who were prepared to build houses in NZ currently or that building in general will be lessened under this regime. Actually, I have read the opposite, in Stuff no less and from investors, that it will encourage investors to move to new builds, rather than purchasing existing properties. Well done I say, that's if that actually happens.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 3:50 am
by Ted.
Fat Old Git wrote: Mon Mar 29, 2021 3:20 am I expect the tenants to keep the property reasonable clean, or should I be installing vermin traps and bait stations so they can leave food scraps and rubbish all over the place? Or employing a cleaner on their behalf? Both landlords and tenants have responsibilities. It's not a one-way street.

Landlords at the bottom end of the scale should be spending the money to bring the property up to standard if they haven't already. Ours was already above that standard when it was introduced, despite being an older property.

Perhaps everyone should be forced to bring them up to the higher standard you are advocating, if it is indeed possible for an older house. But it probably wouldn't save their tenant $50 per month or so. Such a property would sit higher in the rental price scale than it currently does.
Now you are certainly being silly with that, FOG. I have made no claims with regard to the expectations placed on tenants as far as care for the property are concerned, though I freely acknowledge that rental properties, in general, are not as well cared for as owner occupied properties. That is because tenants tend not to care for properties they don't own, a mind set that needs to change, and also that some investors tend not to do maintenance or try to do it cheaply or are poorly informed.

For your information, far too many property managers do not have adequate knowledge in this area and nor do many of the companies that specialise in maintaining rental properties and multi-unit complexes. I come across examples of both on an all too regular basis.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 4:22 am
by Fat Old Git
Yes, it is a bit of an OTT example, although I have had a tenent ask me if the house had had ant problems in the past as he was now getting them turned out to be because he had a habit of leaving empty unhinged beer cans in the garden and in the deck, and an extra large rubbish bin that he didn't change is rubbish all the often.

But you did seem to be advocating that tenents shouldn't have to take any responsibility in keeping their homes warm and dry.

As an aside, our property manager gives out guidance to tenants around how to look after properties. And goes through it with them at sign up. Which seems sensible.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 5:08 am
by Enzedder
Yep, the amount of money this government is wasting on emergency motel accomodation is mind boggling. $330 million a year and growing (Nearly $1 million dollars everyday)
Is it wasting the money though - it's money I bet they wish they don't have to spend but what is the alternative say this month, this year even?

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 5:24 am
by farmerdave
Enzedder wrote: Mon Mar 29, 2021 5:08 am
Yep, the amount of money this government is wasting on emergency motel accomodation is mind boggling. $330 million a year and growing (Nearly $1 million dollars everyday)
Is it wasting the money though - it's money I bet they wish they don't have to spend but what is the alternative say this month, this year even?
One of the problems with speculators trying for the high ground by arguing they provide a service is that the above spending by the govt would indicate that they are doing an absolute shit job.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 6:15 am
by Ted.
Fat Old Git wrote: Mon Mar 29, 2021 4:22 am Yes, it is a bit of an OTT example, although I have had a tenent ask me if the house had had ant problems in the past as he was now getting them turned out to be because he had a habit of leaving empty unhinged beer cans in the garden and in the deck, and an extra large rubbish bin that he didn't change is rubbish all the often.

But you did seem to be advocating that tenents shouldn't have to take any responsibility in keeping their homes warm and dry.

As an aside, our property manager gives out guidance to tenants around how to look after properties. And goes through it with them at sign up. Which seems sensible.
Unfortunately FOG, most of them know jack shit about building standards, the Building Act and Code (if its applicable) and especially not Schedule 1 (exempt work), which should be their bread and butter, and about the same about maintenance and repair. If you happen to have a goodun, hang on to them.

Giving out brochures is a good start, but most of them seem to come from entities that have a vested interest in minimising cost for their members/industry sector.

BRANZ have some very good publications. That's where I'd start for relatively easy to understand guidance on maintenance and repair. The website http://www.level.org.nz/material-use/maintenance/ is also pretty good.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 6:17 am
by Ted.
farmerdave wrote: Mon Mar 29, 2021 5:24 am
Enzedder wrote: Mon Mar 29, 2021 5:08 am
Yep, the amount of money this government is wasting on emergency motel accomodation is mind boggling. $330 million a year and growing (Nearly $1 million dollars everyday)
Is it wasting the money though - it's money I bet they wish they don't have to spend but what is the alternative say this month, this year even?
One of the problems with speculators trying for the high ground by arguing they provide a service is that the above spending by the govt would indicate that they are doing an absolute shit job.
That's one way of of looking at it.

I found the remark by JPNZ churlish and unhelpful. But that's only because I don't thunk people should be forced to live in tents or under a bridge. Hell, motel life is demoralising enough.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 6:28 am
by jambanja
All the people living in motel rooms now, where were they living before, and before people say “their cars” let’s be realistic about, there were never that many people living in their cars as compared to the numbers of people now in motel rooms

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 6:52 am
by Enzedder
jambanja wrote: Mon Mar 29, 2021 6:28 am All the people living in motel rooms now, where were they living before, and before people say “their cars” let’s be realistic about, there were never that many people living in their cars as compared to the numbers of people now in motel rooms
Some would have been sharing houses, garages etc. Some have been affected by the high immigration that we have had for over a decade, and some by the high numbers of Covid returnees soaking up available properties. Some will be taking advantage of the situation

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 7:29 am
by jambanja
Enzedder wrote: Mon Mar 29, 2021 6:52 am
jambanja wrote: Mon Mar 29, 2021 6:28 am All the people living in motel rooms now, where were they living before, and before people say “their cars” let’s be realistic about, there were never that many people living in their cars as compared to the numbers of people now in motel rooms
Some would have been sharing houses, garages etc. Some have been affected by the high immigration that we have had for over a decade, and some by the high numbers of Covid returnees soaking up available properties. Some will be taking advantage of the situation
:thumbup:

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 11:15 am
by JPNZ
Enzedder wrote: Mon Mar 29, 2021 5:08 am
Yep, the amount of money this government is wasting on emergency motel accomodation is mind boggling. $330 million a year and growing (Nearly $1 million dollars everyday)
Is it wasting the money though - it's money I bet they wish they don't have to spend but what is the alternative say this month, this year even?
Well it’s dead money isint it, all they are doing is paying money for accomodation that at the end of it all does nothing to help the situation. Just tell me how an ever increasing spend on emergency housing for the homeless actually reduces the problem?

Do you know how many houses you could build for $920,000 per day?

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 9:06 pm
by Fat Old Git
1 and a bit small Williamson Corp townhouses in Christchurch.

There was something about the spending on motels on one of the news shows the other week. Some motels are charging the government much more than their normal rates and justifying it due to the risk involved with some of the people being housed. That doesn't seem reasonable to me as I'm fairly certain the government would pay for any repairs that might be needed if the people they have placed there cause any damage etc.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 9:47 pm
by JPNZ
guy smiley wrote: Mon Mar 29, 2021 9:10 pm
JPNZ wrote: Mon Mar 29, 2021 11:15 am Do you know how many houses you could build for $920,000 per day?
A couple or three.

There's a bit of an issue though, with timber supply, lack of tradespeople and not enough land. Not short term solution type problems and people need roofs over their heads while the public don't like seeing homeless people on the streets.
You know you don't pay for houses upfront in full when building right? $27,600,000.00 per month would start the build on around 370 houses, obviously ramping up over time.

I work in construction, the timber supply issues will be cleared within 6 months, we have had a lack of qualified tradespeople for the last 10 years and land supply isin't an issue in all areas.

Whatever happened to Kiwibuild? If this government actually started doing something rather than paying exorbitant amounts of money to motel owners, we may have something to house people long term.

Re: NZ Politics Thread

Posted: Mon Mar 29, 2021 9:54 pm
by jambanja
guy smiley wrote: Mon Mar 29, 2021 9:10 pm
JPNZ wrote: Mon Mar 29, 2021 11:15 am Do you know how many houses you could build for $920,000 per day?
A couple or three.

There's a bit of an issue though, with timber supply, lack of tradespeople and not enough land. Not short term solution type problems and people need roofs over their heads while the public don't like seeing homeless people on the streets.
This news from Carter Holt Harvey could have serious implications for the building industries

Re: NZ Politics Thread

Posted: Tue Mar 30, 2021 6:47 am
by Enzedder
I wonder if the current Queensland outbreak / lockdown will have an effect on the travel bubble between NZ and Oz (or some states)

Re: NZ Politics Thread

Posted: Tue Mar 30, 2021 7:53 am
by kiweez
Well, I’ve quit my job at Ministerial Services with my last day in a few weeks. I’m looking forward to being able to contribute to this thread in a meaningful way.

Re: NZ Politics Thread

Posted: Tue Mar 30, 2021 7:59 am
by Enzedder
kiweez wrote: Tue Mar 30, 2021 7:53 am Well, I’ve quit my job at Ministerial Services with my last day in a few weeks. I’m looking forward to being able to contribute to this thread in a meaningful way.
Look forward to it - what sort of role are you moving into?

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:13 am
by JPNZ
For those that actually want to read about the Timber shortage the below from Marty Verry CEO of Red Stag Timber in NZ.
The current shortage of framing timber in New Zealand is a result of a global phenomenon compounded by unfortunate timing for New Zealand's largest supplier Carter Holt Harvey (CHH).

A year ago, the construction industry was at the top of the cycle. Sawmillers, like any manufacturers, invest in capacity based on forecast demand. Then Covid arrived, interest rates were slashed, borders were closed, and people around the world decided that was a great time to build the bach, extend the house, or catch up on the global housing shortage. A further building boom ensued, pushing demand beyond what was already the top of the natural market cycle.

There are now similar shortages in Australia, UK, Europe and the USA. This also explains why New Zealand cannot readily turn to imported framing timber to solve this short-term problem.

Unfortunate timing

The global shortage might not have affected New Zealand had it not been for two events at CHH in the last 18 months.

To put this in context, one needs to understand the structure and trends in the framing supply market in New Zealand. There is a long term global trend toward very large scale sawmilling operations, and consolidation of the sector as a result. Take for example, the construction of the Southern Hemisphere's largest sawmill in Rotorua. It produces over 600,000 cubic meters of timber annually and supplies 25 per cent of the New Zealand framing market.

CHH owned the second, third and fourth largest sawmills based in Kawerau, Whangarei and Nelson respectively, with around 45 per cent market share. In response to a shortage of high density 'structural' sawlogs in Northland – created due to the overcutting on young forests for export a decade ago – CHH elected to close the Whangarei mill and scale up the Kawerau mill. That was an entirely rational thing to do and something the industry expected would happen for many years.

It would have been fine had the Kawerau upgrade worked as planned. Unfortunately, the upgrade required an extra-long Christmas shut this year and the site has struggled to produce the capacity expected since then. I expect it will in due course; these things can take some time.

With the benefit of hindsight, it would have been better to await the successful Kawerau upgrade before closing the Whangarei mill this time last year.

Shortage


All this has created a shortage of timber over the traditionally busy summer and autumn period. CHH was struggling to supply its sister company Carters and its supply contract to PlaceMakers, whilst also supporting customers from other merchant chains, some of which the mills had supplied for decades. Something had to give. The surprising move came on Tuesday last week when ITM, Mitre10 and other independents were informed that their supply would be stopped forthwith.

It is important to note that not all stores in these chains are affected. Red Stag supplies many of the larger stores in these chains as well as PlaceMakers so its customers will be largely unaffected. Others have good relationships with other sawmills, of which there are around two dozen.

What tends to happen in these circumstances is suppliers look after their most loyal historic customers. Merchants will do the same. Those that miss out are likely to be the customers that have shopped around too much, haggled too hard on price, paid late, or been difficult to deal with. Which in turn means it will be business as usual for much of the industry.

Options from here

My estimate is that there is a shortage of 5-10 per cent currently in New Zealand. Others may say more, but what typically happens is the short-supplied stores or customers search around the market for supply giving the impression that there is more shortage than there really is. However, even at 5-10 per cent, this is a problem at a time when the government is trying to scale up construction.

Red Stag and the other sawmills will flex to try to supply more in the short term, but capacity is already stretched. It takes several years of planning, plant manufacture, ordering and installation to bring on meaningful capacity in sawmilling. In Red Stag's case, it has increased capacity from 200,000 to over 600,000 cubic meters in the last 15 years, and will likely push on to 1 million capacity in the coming decade.

One of the issues in the short term is that customers are committed to three months in advance, meaning it is hard to divert volume from export customers already committed to. Once CHH gets comfortable with its Kawerau output and stocking levels, I expect it will make volume available again to spurned customers. That might take until June, when things start to slow down a bit in the market anyway due to winter. The proviso here is whether this is a market share play by CHH's owners Rank Group to sell its sawmills – something it has been trying to do for over a decade.

Government's role

The main volume of new material coming into the New Zealand market will be from the new Cross Laminated Timber (CLT) factory in Rotorua, which will open in May. The Red Stag factory has the capacity to supply 2,000 apartment units annually, so around 5 per cent of New Zealand's housing needs, and much of the current timber shortage if the market adjusts to use that product.

CLT is ideal for mid-floors of terraced houses, so will also help alleviate the market shortage of 'wide' boards.

Kaianga Ora is the most experienced user of CLT in its apartment blocks of 3 storeys and above. It forecasts building hundreds of dwelling units annually with the product, yet it makes up only a portion of its build programme.

If the government wanted to act strategically to alleviate the timber shortage, it would focus Kaianga Ora on using a lot more CLT, and in doing so free up framing timber for the general market to use.

Across the foregoing factors, I expect the timber supply could be back in balance in six months.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:23 am
by Enzedder
Poor bloody motel dwellers (the genuine ones) can't cop a break, can they?

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:30 am
by farmerdave
jambanja wrote: Mon Mar 29, 2021 6:28 am All the people living in motel rooms now, where were they living before, and before people say “their cars” let’s be realistic about, there were never that many people living in their cars as compared to the numbers of people now in motel rooms
Earlier in the year a friend sold a house in the eastern bop to motel owners from Rotorua. They were buying the house as a bach so it's effectively empty. Friends then bought elsewhere in the Bay so one way or another there's a family without a home, probably shifting to to a motel, in Rotorua probably.
Related to this Both that house and a family members house in eastern bop sold for $100k above initial asking.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:35 am
by farmerdave
"What tends to happen in these circumstances is suppliers look after their most loyal historic customers. Merchants will do the same. Those that miss out are likely to be the customers that have shopped around too much, haggled too hard on price, paid late, or been difficult to deal with. Which in turn means it will be business as usual for much of the industry."

In my experience suppliers tend to look after those that make the most noise and just keep getting in the suppliers faces till the supplier just wants to be rid of them. Nice loyal customers don't always win.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:45 am
by JPNZ
farmerdave wrote: Wed Mar 31, 2021 2:35 am In my experience suppliers tend to look after those that make the most noise and just keep getting in the suppliers faces till the supplier just wants to be rid of them. Nice loyal customers don't always win.
Possibly for smaller builders that may happen. For larger scale and commercial builders, I know the main suppliers (Placemakers & Carters) will hold stock for them based on upcoming jobs and workload.

Two weeks ago here in Christchurch ITM sent a truck into Placemakers yard and tried to buy as much framing timber as they could, they were politely told to leave.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 2:56 am
by Ghost-Of-Nepia
Caught up with the property manager and my tenants today as I'm in Dunedin for a couple of days. The insulation was upgraded in the last few days and they're very happy (along with the new kitchen I installed last year).

But, my God, the two tenants can talk. I swear they must sit at home all day, talking at each other about nothing in particular.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 7:22 am
by Ted.
JPNZ wrote: Mon Mar 29, 2021 9:47 pm
guy smiley wrote: Mon Mar 29, 2021 9:10 pm
JPNZ wrote: Mon Mar 29, 2021 11:15 am Do you know how many houses you could build for $920,000 per day?
A couple or three.

There's a bit of an issue though, with timber supply, lack of tradespeople and not enough land. Not short term solution type problems and people need roofs over their heads while the public don't like seeing homeless people on the streets.
You know you don't pay for houses upfront in full when building right? $27,600,000.00 per month would start the build on around 370 houses, obviously ramping up over time.

I work in construction, the timber supply issues will be cleared within 6 months, we have had a lack of qualified tradespeople for the last 10 years and land supply isin't an issue in all areas.

Whatever happened to Kiwibuild? If this government actually started doing something rather than paying exorbitant amounts of money to motel owners, we may have something to house people long term.
The problem is, the need is now.

You are spending money on houses that simply won't be built any time soon due to shortages in materials (we're sending unprocessed logs off shore); shortages of suitably skilled labour labour in all trades, people capable of supervising trades and people qualified to inspect for TAs; shortages in land ready for building which will rely of infrastructure and civil companies capable of providing that infrastructure and professionals capable of designing it.

Once this govt is turfed out on it ear, yet again the training schemes will be bastardised on idealogical grounds, not need, and we'll start the friggen cycle all over again.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 7:34 am
by kiweez
Enzedder wrote: Tue Mar 30, 2021 7:59 am
kiweez wrote: Tue Mar 30, 2021 7:53 am Well, I’ve quit my job at Ministerial Services with my last day in a few weeks. I’m looking forward to being able to contribute to this thread in a meaningful way.
Look forward to it - what sort of role are you moving into?
Private sector. Electrical infrastructure. I’ll be dedicated to working on government agencies and department fleets, working with them to achieve their 2025 zero emissions targets.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 7:44 am
by Ted.
JPNZ wrote: Wed Mar 31, 2021 2:13 am For those that actually want to read about the Timber shortage the below from Marty Verry CEO of Red Stag Timber in NZ.
The current shortage of framing timber in New Zealand is a result of a global phenomenon compounded by unfortunate timing for New Zealand's largest supplier Carter Holt Harvey (CHH).
Spoiler: show
A year ago, the construction industry was at the top of the cycle. Sawmillers, like any manufacturers, invest in capacity based on forecast demand. Then Covid arrived, interest rates were slashed, borders were closed, and people around the world decided that was a great time to build the bach, extend the house, or catch up on the global housing shortage. A further building boom ensued, pushing demand beyond what was already the top of the natural market cycle.

There are now similar shortages in Australia, UK, Europe and the USA. This also explains why New Zealand cannot readily turn to imported framing timber to solve this short-term problem.

Unfortunate timing

The global shortage might not have affected New Zealand had it not been for two events at CHH in the last 18 months.

To put this in context, one needs to understand the structure and trends in the framing supply market in New Zealand. There is a long term global trend toward very large scale sawmilling operations, and consolidation of the sector as a result. Take for example, the construction of the Southern Hemisphere's largest sawmill in Rotorua. It produces over 600,000 cubic meters of timber annually and supplies 25 per cent of the New Zealand framing market.

CHH owned the second, third and fourth largest sawmills based in Kawerau, Whangarei and Nelson respectively, with around 45 per cent market share. In response to a shortage of high density 'structural' sawlogs in Northland – created due to the overcutting on young forests for export a decade ago – CHH elected to close the Whangarei mill and scale up the Kawerau mill. That was an entirely rational thing to do and something the industry expected would happen for many years.

It would have been fine had the Kawerau upgrade worked as planned. Unfortunately, the upgrade required an extra-long Christmas shut this year and the site has struggled to produce the capacity expected since then. I expect it will in due course; these things can take some time.

With the benefit of hindsight, it would have been better to await the successful Kawerau upgrade before closing the Whangarei mill this time last year.

Shortage


All this has created a shortage of timber over the traditionally busy summer and autumn period. CHH was struggling to supply its sister company Carters and its supply contract to PlaceMakers, whilst also supporting customers from other merchant chains, some of which the mills had supplied for decades. Something had to give. The surprising move came on Tuesday last week when ITM, Mitre10 and other independents were informed that their supply would be stopped forthwith.

It is important to note that not all stores in these chains are affected. Red Stag supplies many of the larger stores in these chains as well as PlaceMakers so its customers will be largely unaffected. Others have good relationships with other sawmills, of which there are around two dozen.

What tends to happen in these circumstances is suppliers look after their most loyal historic customers. Merchants will do the same. Those that miss out are likely to be the customers that have shopped around too much, haggled too hard on price, paid late, or been difficult to deal with. Which in turn means it will be business as usual for much of the industry.

Options from here

My estimate is that there is a shortage of 5-10 per cent currently in New Zealand. Others may say more, but what typically happens is the short-supplied stores or customers search around the market for supply giving the impression that there is more shortage than there really is. However, even at 5-10 per cent, this is a problem at a time when the government is trying to scale up construction.

Red Stag and the other sawmills will flex to try to supply more in the short term, but capacity is already stretched. It takes several years of planning, plant manufacture, ordering and installation to bring on meaningful capacity in sawmilling. In Red Stag's case, it has increased capacity from 200,000 to over 600,000 cubic meters in the last 15 years, and will likely push on to 1 million capacity in the coming decade.
One of the issues in the short term is that customers are committed to three months in advance, meaning it is hard to divert volume from export customers already committed to. Once CHH gets comfortable with its Kawerau output and stocking levels, I expect it will make volume available again to spurned customers. That might take until June, when things start to slow down a bit in the market anyway due to winter. The proviso here is whether this is a market share play by CHH's owners Rank Group to sell its sawmills – something it has been trying to do for over a decade.

Government's role

The main volume of new material coming into the New Zealand market will be from the new Cross Laminated Timber (CLT) factory in Rotorua, which will open in May. The Red Stag factory has the capacity to supply 2,000 apartment units annually, so around 5 per cent of New Zealand's housing needs, and much of the current timber shortage if the market adjusts to use that product.

CLT is ideal for mid-floors of terraced houses, so will also help alleviate the market shortage of 'wide' boards.

Kaianga Ora is the most experienced user of CLT in its apartment blocks of 3 storeys and above. It forecasts building hundreds of dwelling units annually with the product, yet it makes up only a portion of its build programme.

If the government wanted to act strategically to alleviate the timber shortage, it would focus Kaianga Ora on using a lot more CLT, and in doing so free up framing timber for the general market to use.

Across the foregoing factors, I expect the timber supply could be back in balance in six months.
So a wee error of timing by CHH is the primary cause. A large part of that is a load of self serving tripe and quite different to the tune Verry was singing in Rotorua a couple of years ago.

CHH, along with Fetcher Forest has a lot to answer for, and not just in relation to timber supplies, but construction supplies in general.

However, other mills and suppliers are also complicit in created shortages by cherry picking what they want to supply to the industry rather than what is required across the board to construct buildings, predominantly houses.

There is a shortage of wides and CCA treated landscaping timber in some areas because the mills/suppliers have swapped production to more profitable lines.

Then CHH play silly buggers, ostensibly because the mistimed the closing of a mill and the commissioning of another. Get of the farkin grass. For start, those people don't give a shit about the cost to us in the form of infrastructure of closing mills close to forestry necessitating expensive and damaging road transport, not to mention the carbon expense.

Developers, designers, builders, etc, if they are organised, are committed at least 6 months in advance, in some instances that will be a year to 18 months. CHH are not going to stop sending unprocessed logs out of the country to help us building more houses if there isn't a significant dollar in it for them, meaning construction costs will go up from an already inflated position. Great for CHH, Graham Hart, etc, but not for NZ.

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 7:46 am
by Ted.
kiweez wrote: Wed Mar 31, 2021 7:34 am
Enzedder wrote: Tue Mar 30, 2021 7:59 am
kiweez wrote: Tue Mar 30, 2021 7:53 am Well, I’ve quit my job at Ministerial Services with my last day in a few weeks. I’m looking forward to being able to contribute to this thread in a meaningful way.
Look forward to it - what sort of role are you moving into?
Private sector. Electrical infrastructure. I’ll be dedicated to working on government agencies and department fleets, working with them to achieve their 2025 zero emissions targets.
:thumbup:

Re: NZ Politics Thread

Posted: Wed Mar 31, 2021 8:24 pm
by Enzedder
kiweez wrote: Wed Mar 31, 2021 7:34 am
Enzedder wrote: Tue Mar 30, 2021 7:59 am
kiweez wrote: Tue Mar 30, 2021 7:53 am Well, I’ve quit my job at Ministerial Services with my last day in a few weeks. I’m looking forward to being able to contribute to this thread in a meaningful way.
Look forward to it - what sort of role are you moving into?
Private sector. Electrical infrastructure. I’ll be dedicated to working on government agencies and department fleets, working with them to achieve their 2025 zero emissions targets.

Good work - Police are going to have to plant a lot of trees (P.D. workers???) :D