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# How to Fix KiwiBuild
- URL: https://goodoil.news/how-to-fix-kiwibuild/
- Published: 2019-06-28T20:30:08.000Z
- Updated: 2019-07-07T11:11:55.000Z
- Author: WH
- Tags: Blog, #wp, #wp-post, #Import 2024-07-17 04:14

Someone who builds houses for a living and understands the market has spoken to Morning Report about some of the issues with the whole KiwiBuild fiasco.

Is it slightly possible that he may have a better understanding of the issues than someone with a doctorate in History?

> Matthew Horncastle, managing director of Williams Corporation, told Morning Report **he had no confidence that the changes would improve the outcome for KiwiBuild.**  
>  
> He said his company sells 20 houses a month in Christchurch and Auckland with 170 under construction at present. Since **Labour had come to power it had delivered 88 houses while the private sector had built 45,000 houses**.  
>  
> While it sounded easy to ease shortages by just going out and building more houses, the government’s approach was too simplistic.

Horncastle talked about the inefficiencies in the current situation:

- There are hundreds and hundreds of little issues:
- It’s not just the Resource Management Act
- It’s not just the building consent process
- It’s not just the planning rules
- It’s everything is an issue and everything causes delays and everything causes inefficiencies.”

Horncastle was hopeful that ministers would see all these problems first-hand and write some policy that can make it more efficient for everyone to operate.

> Mr Horncastle said he refused to be part of the KiwiBuild programme because he knew it would be slow-going and the private sector is always more efficient. **He saw a report recently that said KiwiBuild’s overheads per home produced were $300,000.**  
>  
> “That’s horribly **inefficient and unfair on the New Zealand taxpayer** to be fronting that sort of bill.”  
>  
> His company operated from an **overhead of $5500 per dwelling** produced and that was built into the overall cost.  
>  
> Another problem with the KiwiBuild policy was targeting it at only first home buyers which he called “inefficient and scary”. As well as first-home buyers, a development needed to attract other potential buyers such as downsizers, immigrants and mum and dad investors.  
>  
> He said while 60,000 potential first home buyers had messaged the government to say they wanted to buy a home, it did not mean they would follow through. They might decide to go on holiday, start a business or buy a new car.  
>  
> “We just saw too much risk, probably brand risk, in building a beautiful development and because we could only sell to one piece of the market not having the sales completed in the most efficient way possible.”  
>  
> [RNZ](https://www.rnz.co.nz/news/political/393148/kiwibuild-horribly-inefficient-and-unfair-on-taxpayer-developer?ref=goodoil.news)