Chris Penk

Andy interviews Minister Chris Penk, the Minister of Building and Construction, in a wide-ranging policy conversation. Penk breaks down NZ's construction cost crisis ($5,500/sqm vs AU $4,000, US $3,500) and the three levers government can pull: People, Products, and Processes, with processes offering the biggest gains. They dig into remote/video inspections, 3D model-based consenting, the 10-year infrastructure pipeline problem, and why NZ takes 14-20 months from paper to shovel on residential builds compared to 4 months in the UK.

Key Topics Discussed

• NZ build cost benchmarking. NZ at $5,500/sqm vs Australia $4,000, US $3,500, Philippines $250. Building products make up 25% of total build cost, significant but not the silver bullet.
• Three levers: People, Products, Processes. People: skilled labour shortages, immigration settings. Products: overseas product acceptance, competition (Commerce Commission 2022 plasterboard finding). Processes: consenting reform, inspections, this is where the biggest gains live.
• Consenting timeline. NZ takes 14-20 months from paper to shovel for residential, versus 4 months in the UK. Massive drag on productivity and housing supply.
• Remote/video inspections. Currently consulting on this. Penk calls it a "no brainer" in 2024. Would reduce delays and inspector travel.
• 3D model-based consenting. Andy pushes the vision of 3D/BIM models for consenting and CCC pre-approval. Penk is interested but flags the risk/liability barrier: who takes responsibility if something is signed off incorrectly? Leaky buildings era fear looms large.
• 10-year infrastructure pipeline. Andy argues political cycles kill projects (Light Rail cancelled, Interislander ferry replacement). Penk counters that genuinely good projects survive governments, cites the Puhui highway example where Labour cut the ribbon on what they'd called "John Key's Holiday Highway."
• Scale of industry. 1 in 10 Kiwis employed in construction, similar proportion of GDP.

Notable Quotes

• Penk: Remote/video inspections are a "no brainer" in 2024.
• Andy: Political cycles cancel projects, Light Rail, Interislander, undermining the pipeline.
• Penk: Good projects survive changes of government, Labour cut the ribbon on "John Key's Holiday Highway."

Guest Background

Chris Penk is the Minister of Building and Construction. Former Royal New Zealand Navy, trained as a lawyer, ran his own law firm before entering politics. Now responsible for building system reform including consenting, product regulation, and construction workforce policy.