Business

Building industry urges delay to energy efficiency code

12:26 pm on 5 April 2022

The building industry says members are suffering from stress and want the deadline for meeting the new energy efficiency building code to be pushed back one year, amid escalating costs and disruptions to supply and labour.

Photo: 123RF

The requirements announced late last year by the Ministry of Business, Innovation and Employment (MBIE) were the biggest in more than a decade and designed to make homes and buildings warmer, drier and healthier, with less impact on the climate as the country moves to net zero carbon by 2050.

"The new requirements will reduce the energy needed to heat homes by up to 40 percent, allowing people to heat their homes more easily and efficiently, which will lead to positive health impacts and increased energy savings for New Zealanders," MBIE manager Jenni Tipler said, when the final code was released in late November.

"Over 98 percent of responses supported increases over the status quo in the shortest time possible," she said, adding there was widespread support for the proposed changes, which were to be implemented by 2 November.

Among the changes was a requirement to significantly increase insulation for roofs and windows.

Master Builders chief executive David Kelly said there was support for the changes, but the deadline was too tight.

"You also have to think about different elements of the building so...you have to think about how all of that works together to get the optimum solution," Kelly said.

"Because if you deal with them all individually, that's the most expensive way to achieve the outcome."

MBIE said in a statement it was talking to the industry about the concerns it raised about the deadline.

However, MBIE did not agree with the industry estimate that compliance would add at least $25,000 to the cost of building a basic home.

MBIE said it estimated the cost would be less than half that to insulate a new single-storey timber-framed four-bedroom home, at between $8800 and $12,100.

EasyBuild Homes director Mike Fox said MBIE should go back to the drawing board and consult directly with the industry about what it would take to meet the code's objectives, with a phased-in timeline for implementation.

"It is important this should be done in a well thought out and timely way, and that it is a New Zealand-specific solution that gives an already struggling industry time to advise, adapt, cope and maintain delivery," Fox said.

Fox questioned whether MBIE had conducted a cost-benefit analysis, when it considered the new standard.

"These changes come at a time when housing affordability and availability is at its lowest point ever, and really makes you wonder who is driving something so divorced from reality," he said.

Kelly said there was also concern the membership was already under enormous pressure, with increased concerns about the mental health of some members.

"Rushing this will not help one little bit and it's another thing for people to be worried about and for consumers to get more confused about," Kelly said.