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Chief Executive's Upfront
Materials Neutral Government Procurement Confirmed

Thursday, 15 July 2021  

The first half of 2021 has seen a huge amount of government consultation across the building and construction sector which has required a robust Concrete NZ response.


Rob Gaimster, Chief Executive

In addition to discussion documents around proposed changes to the New Zealand Building Code from the Ministry of Business, Innovation and Employment (MBIE), and the Climate Change Commission’s draft advice, the perennial ‘Wood First’ policy has loomed large.

It is extremely encouraging therefore that the resource committed by Concrete NZ to articulate the concrete’s industry strong opposition to the latter has paid dividend.

NO WOOD-FIRST POLICY
The Minister for Economic Development, Government Procurement and Forestry, Stuart Nash’s recent response to written parliamentary questions from Opposition Building and Construction spokesperson Tim van de Molen, was that the government’s proposed wood-first policy would not progress.

Although Minister Nash referred to the new Construction Procurement Guidelines, which encourage the use of wood in construction, they are not an explicit instruction to do so.

The Minister’s decision not to yield to the wood lobby, and adopt a wood-first policy for the procurement of government buildings, is applauded by Concrete NZ, which over recent months has partnered with the metals sector in advocacy efforts.

The wood-first policy would have directed government procurement towards a much stronger orientation on building in wood, including requirements that:

  • all government-funded project proposals for new buildings up to 10 storeys high require a build-in-wood option at the initial concept / request-for-proposals stage (with indicative sketches and price estimates); and that
  • when [Government is] a tenant of the private sector, give preference to new buildings that are constructed out of wood.

The belief, regularly dusted off over the past decade by government, that building in timber is the most effective route to zero carbon construction, has always been a concern.

A very real perverse outcome of the Wood-First policy could have been inappropriate material selection for buildings, which would drive up costs and slow supply, more so at a time when there is a much-publicised shortage of timber.

An even worse case would be another $50 billion leaky buildings crisis or a catastrophic fire.

Government procurement, not to mention climate change regulation, must treat all building materials equitably.

A building’s required performance and sustainability criteria should be articulated by government through a Life Cycle Assessment (LCA) from an approved third-party.

This would allow structural engineers, architects, quantity surveyors and contractors to select the most suitable materials.

Concrete NZ will continue to work collaboratively with government and other material industries to advance a whole-of-life carbon strategy that reduces emissions and waste, and in turn create durable buildings.

An important part of this work will be supplying the industry’s reportable metrics in line with the United Nations Sustainable Development Goals (SDGs).

SUSTAINABILITY REPORTING
Concrete NZ has been communicating over the past 12-months that a review by independent consultancy - thinkstep - confirmed New Zealand’s concrete industry reduced emissions from cement by 15 percent between 2005 and 2018.

This metric is hugely useful in allowing the concrete industry to demonstrate the progress already made as well as defining future goals. In fact, it has enabled us to set a reduction target of 30 percent in carbon dioxide emissions by 2030.

An objective for Concrete NZ in the second half of 2021 is to broaden our sustainability reporting beyond emissions reduction by comparing our industry against selected United Nations SDGs.

SDGs are at the heart of the United Nations 2030 Agenda for Sustainable Development which provides a shared blueprint for peace and prosperity for people and the planet.

The SDGs are an urgent call for action by all countries - developed and developing - in a global partnership.

They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change.

Concrete NZ will be identifying specific SDGs, such as #11 - Sustainable Cities and Communities, and collecting data and/or developing case studies that allow progress to be tracked. Key areas of focus will include fuel consumption, health and safety, employment, training and waste minimisation.

The intention is to present the initial report at the 2021 Conference to gain member feedback and help the concrete industry better understand, communicate and manage its contributions to the SDGs.