Who is now in charge of building? 

Simon Watts has taken responsibility for Building and Construction following the departure of Chris Penk, adding the portfolio to his existing responsibilities, which include Local Government, Climate Change, Revenue and Auckland

The change does not mean Watts is now responsible for every government policy affecting where, when and how New Zealand builds. Building and Construction is one of several portfolios with a direct influence on the sector. 

Housing, Infrastructure and RMA Reform are all held by Chris Bishop, while Watts’ Local Government responsibilities give him oversight of another area closely connected to the building system. The result is a series of portfolios that are separate but frequently intersect. 

Building and Construction – Simon Watts

Building and Construction is the portfolio most directly connected with the rules builders encounter on the job. 

MBIE describes the portfolio as having oversight of the institutions and markets involved in the construction and maintenance of New Zealand buildings. It includes responsibility for the direction and design of the building regulatory system. 

In practical terms, that encompasses the Building Act, Building Code and the building consent system, alongside areas including occupational licensing and product certification. 

Bringing the Local Government and Building and Construction portfolios together potentially creates a closer connection with councils, which perform key functions within the building system.

That crossover was evident in June, when Watts and then Building and Construction Minister Penk jointly announced that the statutory timeframe for councils to issue Project Information Memorandums would be halved. 

Building Industry Federation (BIF) Chief Executive Julien Leys expects the immediate effect of the ministerial change to be limited. 

“A change of minister does not necessarily mean a change in policy,” said Leys. “Unless otherwise announced, it remains business as usual.” 

Leys also pointed to the potential relevance of Watts’ existing portfolios, given the overlap between building policy and areas including council consenting, infrastructure and climate-related requirements. 

Watts held a building and construction industry representative meeting on 19 August with invited industry bodies and groups such as the BIF, where he spoke about his willingness to maintain and build on the work Penk has done. He added that he was looking forward to learning more about the industry and will be talking to builders in the coming months. 

“As Minister, I’m committed to continuing the progress that we’re making, to make sensible changes that are fair and supported by industry to give it more resilience and confidence in the sector,” he said. 

Housing, infrastructure and RMA – Chris Bishop

Chris Bishop holds three other portfolios with significant implications for builders – Housing, Infrastructure and RMA Reform. 

Housing deals with the wider question of housing supply and how government policy can enable more homes to be built.

RMA Reform sits further upstream. It concerns the planning and resource management system that determines matters such as where development can occur and the rules applying to land use.

Infrastructure is another part of that equation. New housing requires supporting infrastructure, including services such as water and transport, while the way infrastructure is funded can influence whether development proceeds. 

The portfolios consequently overlap in practice. The Government’s Going for Housing Growth programme, for example, combines changes to land supply through resource management reform with infrastructure funding and financing changes and financial incentives for councils to support housing growth. 

Where the portfolios meet

The division becomes clearer by considering a housing development from start to finish. 

RMA and housing policy can influence whether land is available for development and what can be built on it. Infrastructure policy can affect whether the services required to support that development can be provided and funded. Building and Construction policy then governs much of the regulatory system applying to the building itself. 

Local government cuts across several of those areas because councils administer planning requirements, provide infrastructure and operate building consent authorities. 

The portfolios are therefore distinct but government decisions affecting builders can involve more than one minister. 

Watts’ appointment does not in itself alter the building reforms already under way. The next indication of his approach will come as the Government continues that programme and Watts sets out his priorities as Building and Construction Minister.