Elevate Taranaki Issue #1 by Markat

This issue of Elevate kicks off by looking at the Natural Hazards Commission’s message to homeowners, as landslide claims increase tenfold.

There are pieces on the Infrastructure Commission’s report on how urban density cuts costs and saves cities money, and how the construction industry is seeing mental health gains, but there’s still more to do.

We also look at research which claims to have

and how to implement successful reform.

You’ll find articles on how to protect your business from insolvency, construction disruptions in Wellington’s CBD, and the forces behind rising building costs and decreasing numbers of building consents, plus lots more. Enjoy.

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Landslide claims increase tenfold

In the wake of damaging weather events nationwide, New Zealand’s natural hazards insurer is urging homeowners to understand the natural hazards that could impact their properties and their insurance limits.

Natural Hazards Commission Toka Tū Ake (NHC Toka Tū Ake) had received almost 10,000 claims for damage from landslides in the last three years, nearly ten times more than the previous three years when there were just over 1,000 claims lodged.

“The significant storms in recent years caused devastation to communities across the country,” says NHC Toka Tū Ake Chief Resilience and Research Officer Jo Horrocks.

“Landslide damage can be complex and costly to fix, and the insurance available for damaged land is limited. It’s really important to understand the risks, think about ways to protect your property and factor that into your financial planningbefore an event happens.”

NHC Toka Tū Ake currently receives more claims for damage due to landslides than any other natural hazard. Since the Auckland Anniversary floods in January 2023, losses from landslides have totalled $302 million – over four times the cost of all other natural hazards combined.“For landslide damage, the natural hazards scheme covers up to the first $300,000 of damage to an insured home, and private

By Ben O’Connell

insurance covers the rest up to the policy limit. There is also a limited contribution available for damage to land through the national scheme. “However, the scheme can only cover up to the value of the insured land, up to eight metres around your home. For some homeowners, that won’t cover the full costs of repairing their land, especially when complex landslides have occurred,” Jo says.

If you’re buying a new property, you can also visit the Natural Hazards Portal for information on past claims related to landslides and other natural hazards, which could indicate future risk.

“A landslip may be triggered by heavy rain or earthquakes, with homes near hills or steep slopes most at risk. If you live near a hill or steep slope, watch out for cracks or movement that could be a warning sign,” the

Landslides occur when soil, rock, or debris moves downhill due to natural or human induced factors. In New Zealand, several key triggers contribute to the increasing risk of landslides, affecting homeowners and communities across the country.

Heavy rainfall and severe storms are among the most common causes of landslides. When the soil becomes saturated with water, it loses stability, making it more likely to slide. In recent years, extreme weather events such as the Auckland Anniversary floods in 2023 and Cyclone Gabrielle have caused widespread landslips, resulting in extensive property damage.

“If you live on or near a slope, there are things you can do to identify signs of potential slipping and prepare your property. Consider getting advice from a geotechnical expert and keep an eye on your retaining walls and slopes to make sure they’re wellmaintained,” she says.

“It’s also important to understand the limits of cover for your driveway, consider if you can strengthen it against storm damage, and make plans in case your driveway gets washed away.”

government’s natural hazards site reads.

“Make sure any retaining walls are well maintained, and look around to see if neighbouring retaining walls or slopes could affect your property.

“Keep a look out on your property for unusually angled retaining walls, small slips or rock falls, subsidence or bulges on or at the bottom of the slope, tilting trees or fences, cracks in the ground, retaining walls, driveways, footpaths or other hard surfaces, ground that’s

become waterlogged, and water seepage at the bottom of the slope.

“It’s worth thinking about what would happen if a retaining wall failed. Consider who and what would be affected. How would you pay for repairs? The work may cost more than you might receive from natural hazards cover or your private insurance cover.”

Visit www.naturalhazards.govt.nz for more information.

What causes landslides?

Landslides occur when soil, rock, or debris moves downhill due to natural or human-induced factors. In New Zealand, several key triggers contribute to the increasing risk of landslides, affecting homeowners and communities across the country.

Heavy rainfall and severe storms are among the most common causes of landslides. When the soil becomes saturated with water, it loses stability, making it more likely to slide.

In recent years, extreme weather events such as the Auckland Anniversary floods in 2023 and Cyclone Gabrielle have caused widespread landslips, resulting in extensive property damage.

Earthquakes can also trigger landslides, particularly in areas with unstable terrain. The shaking of the ground can loosen soil and rock, causing slopes to collapse. In earthquake-prone regions, even small tremors can weaken land over time, increasing the likelihood of future landslides.

Human activity, such as deforestation and construction on steep slopes, can make land more susceptible to landslides. Removing vegetation that stabilises the soil or altering natural drainage patterns can contribute to slope instability. Poorly designed infrastructure, such as roads or retaining walls, can also lead to unexpected land movement.

New Zealand’s geology plays a significant role in landslide risk. Many regions have weak or erodible rock formations that are more prone to failure, especially when exposed to heavy rain or seismic activity. Areas with steep terrain and soft soils are particularly vulnerable.

Climate change is expected to increase the frequency and severity of extreme weather events, leading to more landslides in the future. Rising temperatures and shifting

rainfall patterns may contribute to more intense storms and prolonged wet conditions, further destabilising slopes.

Reducing landslide risk

Homeowners can take proactive steps to reduce the risk of landslide damage. If you live on or near a slope, regularly inspect your property for warning signs such as cracks in the ground, retaining walls, or driveways. Look for tilting trees, bulging soil, or water seepage, as these could indicate potential land movement.

Ensuring that retaining walls are well maintained can help prevent soil from shifting. If you notice any signs of instability, seek advice from a geotechnical expert. Proper drainage is also crucial— diverting water away from slopes can reduce the risk of soil saturation and erosion.

Landslide damage can be complex and costly to fix, and the insurance available for damaged land is limited. It’s really important to understand the risks, think about ways to protect your property and factor that into your financial planning - before an event happens.

If you are considering buying a property, check the Natural Hazards Portal for information on past landslide claims in the area. Understanding the history of land movement in a location can help you assess future risks before making a purchase.

Insurance coverage for landslides in New Zealand is limited, so it is essential to understand what your policy includes. The national natural hazards scheme covers up to the first $300,000 of damage to an insured home, while private insurance covers the remaining

cost up to the policy limit. However, land cover is restricted to the insured area, typically up to eight metres around the home. In some cases, this may not be enough to cover extensive repairs.

For homeowners living in highrisk areas, being prepared is key. Monitoring your property for warning signs, investing in preventive measures, and understanding your insurance coverage can help you minimise the impact of a landslide before disaster strikes.

Consents down, building costs up

By Ben O’Connell

New figures have shown the annual number of homes consented to – so new residential building projects embarked on – is again down compared to the year prior.

Stats NZ says that in the year ending January 2025, 33,812 new homes were consented to, down 7.2% compared with the year ending January 2024.

The annual value of nonresidential building work consented was $8.9 billion, down 9.7% from the year ended January 2024.

11% more new homes were consented to in January 2025 compared to January 2024, but economic indicators spokesperson Michael Heslop says figures still remain below the levels seen in January 2022 and 2023.

Of the 2,203 new homes consented, there were 1,077 stand-alone houses consented, up 20% compared with January 2024, and 1,126 multi-unit homes consented, up 3.1%.

These findings from Stats NZ paint an especially grim picture when paired with QV CostBuilder’s latest study, which found building costs have increased at an average rate of 44% over the last four years despite the rate of inflation slowing markedly last year.

The study compared the cost of building a standardised 150m² home across six main urban centres – Auckland, Wellington, Christchurch, Dunedin, Hamilton and Palmerston North.

“Despite always being the most expensive city to build a home in overall, construction costs actually increased by the smallest margin in Auckland (39.4%). Christchurch (40.5%) wasn’t far behind, with Hamilton (44.8%) sitting just above average,” QV reported.

“In real dollar terms, however, Wellington saw the largest average increase in the cost to build a home; its average build cost increased by $900 per square metre in four years. As a percentage, the cost of building a home in the capital increased by an average of 45.9% since 2020.

“But the good news for developers or for anyone looking at building a home is that the rate of building cost inflation has slowed markedly in recent years. In 2024, costs increased at a rate of between 0.7% and 2.2% across these six main urban areas.

“The smallest percentage increases last year were in Auckland (0.7%) and Hamilton (0.7%). Palmerston North (2.2%) saw the largest increase in 2024.”

“There are currently no significant differences in the rate of construction cost increases across the country. What these numbers show is just a relatively small difference in cost, which can

be attributed to variable labour rates, different company overheads, some variance in materials, and differing transport costs across the country,” quantity surveyor Martin Bisset says.

“After years of pronounced inflation that came as a result of managing the COVID-19 epidemic here and abroad, it’s good to see that construction costs have become significantly more stable in recent years. Hopefully, the years of such staggeringly large construction cost increases are now firmly in the rear-view mirror.”

Ongoing geopolitical instability in Ukraine and the Middle East, the proliferation of US-led trade wars, and increased tariffs on construction materials also impact the cost of building homes in New Zealand, he adds. “Given that Aotearoa relies so heavily on importing building materials, a lot always depends on the buying power of the New Zealand dollar.”

The study compared the cost of building a standardised 150m² home across six main urban centres –Auckland, Wellington, Christchurch, Dunedin, Hamilton and Palmerston North.

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Getting to the bottom of governance dysfunction Fixing local government

New Zealand’s local government faces a fundamental issue that can be resolved, according to recent research.

Nick Clark, a senior fellow at The New Zealand Initiative, identifies the root cause of local government dysfunction: mayors and councillors are unable to deliver on their promises because they lack the power to govern. Instead, unelected officials hold the real authority.

Clark’s report, Making Local Government Work, points to successful reforms implemented in the German state of North RhineWestphalia, which faced similar challenges with the British-inspired system New Zealand inherited.

“They addressed this by giving mayors genuine authority while maintaining strong checks and balances. Now, 25 years later, the system delivers accountability and better results,” Clark explains. “This demonstrates the potential of addressing the democratic gap in local government.”

The report proposes five reform options, including adopting this international model, strengthening democratic oversight, allowing communities to vote directly on major projects, and extending Auckland’s mayoral office model to other councils.

Clark warns that every year reform is delayed, more dysfunction and wasteful spending ensue. “The solutions are available; we just need the political will to implement them,” he says.

From the report

Local government in New Zealand suffers from a critical flaw that hinders its effectiveness. Voters elect mayors and councillors to lead their communities, but these representatives have limited power.

Actual authority lies with unelected officials, often operating behind the scenes. Many New Zealanders may not realise that when they vote for a mayor, they are choosing a leader with significantly restricted powers.

While mayors can appoint deputy mayors and establish committees, councils can remove deputy mayors and disband committees at will. Meanwhile, unelected chief executives control

council operations, staff appointments, and the flow of information to elected officials.

This “democratic void” — the disconnect between voter expectations and the reality of local government — explains the dysfunction seen nationwide:

• Wellington City Council requires a Crown Observer to address escalating problems while basic infrastructure fails

• Carterton District Council tried to exclude an elected representative from crucial decisions due to her views, which aligned with her election platform

• In Waitomo, a mayor campaigning for a rates freeze faced criticism for publishing personal opinions ahead of a council vote

• The Gore District Council experienced such severe

dysfunction that both the mayor and chief executive faced calls to resign.

The impact of these governance failures extends beyond leadership issues; it also leads to rising costs. Local authority rates increased by 12.2% in the year leading up to September 2024 — the largest rise since 1991. The forecast for 2024/25 is even worse, with average increases predicted to be 15%.

While the government aims to get councils “back to basics,” these reforms will struggle without addressing the core issue: the systemic prioritisation of administrative control over democratic accountability.

Unlike corporate boards, which can seek independent advice, elected representatives are often left relying on information filtered through the very bureaucracy they are meant to oversee.

The system actively limits democratic oversight, it says, with more than half of councillors reporting that codes of conduct are weaponised against them, preventing them from speaking freely and effectively representing their constituents.

Accessing basic information is also a challenge, with councillors often unable to obtain the data necessary to make informed decisions.

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Insolvencies are on the rise

How

contractors can protect their business

Steve O’Dea of Anderson Lloyd

The construction industry can be tough, even when the economy is strong. When the economy turns sour, risk mitigation strategies are vital.

Times are still tough

Global economic activity is expected to remain subdued in the near term according to the Reserve Bank’s February 2025 Monetary Policy Statement. Activity remains below trend, and “[t]his reflects falling activity in interest rate sensitive sectors such as construction”. Growth is expected to recover during 2025, but the speed of that recovery is uncertain.

Construction sector leads credit defaults, and insolvencies are high

Inflation and interest rates have been a constraint for construction clients. With slow and uncertain work pipelines, aggressive pricing can lead to tighter profit margins and cashflow concerns. This puts a strain on businesses.

Credit defaults have hit the construction sector particularly hard, with construction defaults up 35% year-on-year, the largest increase of any sector (February 2024, Credit Indicator issued by Centrix). Company liquidations across all sectors are up 38% compared to the previous period. Centrix reports, “Notably, in January, 24% of these insolvencies were attributed to the construction sector”.

In this environment, contractors need to be alive to their risks. Proactively managing such risks

can preserve cash flow and protect contractors in conditions where issues and disputes are more common.

Contracts

that work for you

Getting the contracts right saves a lot of trouble:

• Know who you’re dealing with: Does the client have enough contingency? How financially healthy and reliable is the supply chain?

• Allocate the risks: Are the risks allocated to the person who can control each risk? Can that person afford those risks?

• Align the contracts: Do the subcontracts align with the client contract? If not, the gaps can leave a contractor exposed.

• Align the pricing: A fixed price client contract and uncertain subcontractor/supplier pricing can lead to losses.

• Write up the contract: Even if the building work costs less

than the $30,000 mandatory threshold for residential building work, have a written contract. This is vital for disputes relating to payment or scope.

Keep on top of admin and payment claims

Cash flow is the key to solvency. Good admin and getting payment claims right preserves cash flow and prevents expensive and time-consuming disputes.

• Payment claims to the client: If payment claims / invoices are set out in the format required by the Construction Contracts Act 2002 (the Act), contractors can get the benefit of the ‘pay now argue later’ concept which is useful when dealing with difficult clients.

• Payment schedules to subcontractors: Such enforceability under the Act also works for subcontractors against contractors. It’s important that contractors issue valid payment schedules. Otherwise, it will be the contractor who has to ‘pay now and argue later’.

An experienced quantity surveyor or project manager can prepare these documents and help contractors improve their cash flow and avoid expensive disputes.

Know your rights and responsibilities on retentions

There are many examples of clients and head contractors who went insolvent, and the retentions disappeared with them. However, the Construction Contracts

Contractors should check their retention money is being held properly by clients. In turn, contractors need to ensure they’re looking after their subcontractor’s retention money to avoid personal exposure to fines and losses.

(Retention Money) Amendments Act 2023 improved the protections for contractors and subcontractors.

There are now strict accounting practices (including reporting) for holding retentions. Noncompliance can lead to large fines and personal responsibility for directors.

Know when to notify issues and raise disputes

Some contracts have strict notification requirements requiring contractors to raise any variations or issues in writing within a certain number of days or else lose the right to do so.

If an issue is raised but not resolved, contractors have access to adjudication under the Act, which is unique to the construction sector and provides a quick and cost-effective thirdparty decision without needing to go to court. Used right, this is a

powerful tool that can secure cash flow when there are disputes.

It’s easier than it sounds

Many of these steps are about good habits, templates and processes. Spending a bit of time to get those right can help contractors maintain cash flow and weather the economic challenges until the boom times come again.

Steve O’Dea

Steve O’Dea is a construction law specialist at Anderson Lloyd.

Time and again Solutions for solving recurring issues

Design

“Procurement methods need to evolve. Where possible, finalisation of the contract should be collaborative and the preferred contractor should be involved in the negotiation of the contract, rather than simply given concluded terms to price,” says Russell McVeagh Property and Construction partner Ed Crook.

“High quality, well developed designs and specifications should be included in the contract documents. Incomplete and/or poor quality design frequently results in the contractor incurring delays and additional costs,” he says.

Project management

Building an effective team, including strong collaborative relationships with preferred consultants and contractors, is also recommended, especially where the Principal has a significant pipeline of work.

“Providing some assurance that a contractor will be engaged to perform a pipeline of work allows for greater investment in recruitment and training and encourages long-term cooperation,” Ed says. High quality training of engineers is needed too, which may assist in improving standards of engineers to the contract.

“From our discussions, adopting an accreditation process is suggested as a potential fix, albeit a medium-to-long term solution that would require large-scale buy-in,” he says.

Dispute resolution

In instances where the above mechanisms fail, there is scope for resolution processes to be used more efficiently, either through adjudication or dispute review boards, Polly says.

“Adjudication is intended to provide a mechanism for a fast and inexpensive resolution to disputes as they arise under a construction contract.

“There is scope for it to be used more efficiently, by referring issues for a decision as they happen. In the right case, this can allow parties to get an answer and get on with the project.

“Dispute review boards are also worth considering, particularly on larger projects. This involves having a standing panel appointed at the start of the contract, which is made up of usually one or three people.

High quality training of engineers is needed too, which may assist in improving standards of engineers to the contract.

They stay informed of the progress with the project and provide a means by which issues can be quickly resolved,” she says.

Russell McVeagh’s, ‘Getting it right from the ground up: A survey on construction disputes and how to avoid them’, found that over 70% of industry participants anticipated an increase in disputes over the following two years.

The firm released the results in August last year, and has since further engaged with construction sector stakeholders and drawn comparisons with international reports to better understand mechanisms for proactively avoiding recurring issues leading to construction disputes in New Zealand.

Contract forms

Despite widespread use of 3910 as a base contract, the increased use of long and complex special conditions appears to be resulting in contracts which are not understood by the parties to them, or the people responsible for administering the contracts.

“The industry would benefit from using a different standard form which all parties were happy to use without significant special conditions,” Ed says.

“This could either be by way of adopting a standard form currently in use overseas, or by a (prompt) update of NZS3910.”

Embracing change

Adopting new tech the key to construction’s

Workplace injuries, labour costs, and a shortage of skilled workers are among the challenges facing the construction sector.

These issues can be addressed by adopting technology, according to the CEO of a leading safety and worksite management platform.

Ben Leach, founder and CEO of HammerTech, has witnessed first-hand how technology can boost productivity and help

mitigate many of the rising costs and obstacles facing the industry.

“In our experience across New Zealand, Australia, and the US, some companies and subcontractors hesitate to embrace new processes, particularly when it involves

technology. Many resist adopting new platforms, especially if they aren’t user-friendly,” he says.

Ben emphasises that embracing technology is essential for attracting new talent to the construction sector and ensuring future

future

growth. Unfortunately, the construction industry has lagged behind other industries that are moving more swiftly to innovate.

“There are significant opportunities for New Zealand companies in the construction industry that become early adopters of evolving technology. These companies can boost productivity, deliver higher quality work, and enhance the safety of work sites for their teams.”

He also highlights the role of technology in reducing workplace injuries, a growing concern in the industry.

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“The right construction-specific technology has proven to bring substantial benefits, not just for main contractors but for subcontractors as well.”

Injury prevention

“Access to accurate safety data allows a company to pinpoint which injuries are happening and implement measures to reduce their occurrence,” Ben says. “For example, tracking hand injuries can help raise awareness, update safety protocols, and minimise the risk of these injuries moving forward.

Barriers to change

Ben illustrates several obstacles hindering technology adoption in the construction industry, including reluctance from tradespeople and

subcontractors to embrace new technology, as well as budget constraints preventing companies from investing in tech solutions.

He stresses that while other industries are quickly adopting new technologies, construction must do the same to stay competitive.

“AI tools like ChatGPT are disruptive and can be perceived as a threat to industries and people’s livelihoods. However, instead of focusing on job loss, we should look at how technology can simplify burdensome tasks, such as paperwork.

“This will free up time for safety and construction experts to focus on improving standards through training, coaching, and

trend analysis,” Leach explains. Deloitte’s State of Digital Adoption in Construction Report 2023 found that the main barriers to technology uptake include a lack of digital skills in the workforce (44%), budget limitations, and a lack of confidence in those skills.

Ben notes that the growing trend toward vertical construction in New Zealand, driven by the move towards higher-density neighbourhoods and precincts, presents an opportunity.

As construction workers upskill, they can adopt technology and provide new entrants to the workforce with the chance to utilise innovative tools and working methods. This, he believes, will attract younger,

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tech-savvy generations to the sector.

Insight, capability and change

“Having easy access to information enables managers to analyse health and safety and operational performance in real-time, which leads to better risk and operations management,” he says.

“Centralising safety and site operations into one system eliminates the hassle of using multiple platforms, which can stifle growth and waste valuable time. Going digital is the most efficient and effective way to produce high-quality data for reporting purposes.”

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Driving progress in Taranaki-King Country

Meet Barbara Kuriger, your dedicated Member of Parliament for TaranakiKing Country, who is currently proudly serving her fourth term.

With a wealth of experience as Deputy Speaker of the House of Representatives, Barbara brings a unique blend of passion, strategy, and heartfelt commitment to her role. A seasoned expert in dairy farming and agribusiness, Barbara has an extensive resume, including former board positions at DairyNZ, Primary ITO, Taratahi, Dairy Women’s Network, and NZ Young Farmers. Her accolades include being named 2012’s Dairy Woman of the Year and a Fellow of the NZ Institute of Directors in 2014. Barbara’s educational background is equally impressive, with a Strategic Leadership MBA and a Postgraduate Certificate in Public Policy from Victoria University of Wellington.

She is deeply respected within the agricultural and agribusiness communities and is known for her drive to pursue continuous personal and professional growth.

Her advocacy extends to rural health and community services, ensuring that all voices are heard and addressed.

Barbara is renowned for her strategic thinking and her capacity to tackle challenges head-on. She is deeply respected within the agricultural and agribusiness communities and is known for her drive to pursue continuous personal and professional growth. She remains committed to learning and drawing insights from those around her, believing in the power of community and collaboration.

As a long-time resident of Taranaki, Barbara understands the significance of New Zealand’s leading resources region and the necessity of well-maintained transport routes for both rural and urban communities. Her advocacy extends to rural health and community services, ensuring that all voices are heard and addressed.

Beyond her professional life, Barbara is a loving wife to Louis, a mother of three, and a grandmother to six. An avid tramper, she seized every opportunity to explore New Zealand’s breathtaking landscapes with her family.

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Wellington in crisis

Wellington has always been a city with character. Known for its creative energy, thriving arts scene, and vibrant cafés, it’s a place people either fall in love with or grow to appreciate for its quirks—wind included.

But recently, murmurs about the “death” of Wellington’s city centre have grown louder. With closures hitting both the hospitality and retail industries and construction disruptions affecting foot traffic, some are wondering if the capital is losing its life.

For many, the writing on the wall became hard to ignore when news broke that The Warehouse’s flagship store in Wellington’s central business district would be closing its doors. For decades, the red giant stood as a symbol of accessibility, offering locals and visitors a place to grab everything from cheap homewares to kids’ toys. The news of its closure hit residents hard, with some expressing sadness not just for the loss of a convenience store but for what it symbolised: a city centre losing its diversity.

The store’s closure speaks to a broader issue. Retailers across the city are struggling, and the pandemic only accelerated the challenges. Add to this the impact of major construction projects disrupting traffic flow and accessibility, and you have a recipe for dwindling foot

traffic. Some business owners, already dealing with tight margins, have simply decided it’s no longer viable to keep their doors open.

It’s not just retail taking a hit—Wellington’s renowned hospitality scene is feeling the pressure too. Once the beating heart of the city’s social life, the hospo industry is facing some tough realities. The buzz of Courtenay Place and Cuba Street isn’t quite what it used to be. High rents, staffing shortages, and fluctuating customer numbers are all creating a storm for business owners. One café owner described the situation as “unsustainable,” sharing how difficult it’s become to make ends meet when every week brings new challenges.

But for every claim that the city is “dying,” there’s someone pushing back. Wellington

Once the beating heart of the city’s social life, the hospo industry is facing some tough realities. The buzz of Courtenay Place and Cuba Street isn’t quite what it used to be.

mayor Tory Whanau has been vocal in defending the city’s resilience. She acknowledges the challenges but also points out the efforts being made to revitalise the city. Construction projects, while disruptive in the short term, are aimed at long-term improvements that will make the city more liveable, safer, and better connected. Projects like the strengthening

of heritage buildings and upgrades to infrastructure are designed to future-proof the city, ensuring Wellington remains a hub for residents and businesses alike.

Even the Beehive has weighed in on the debate. Deputy Labour party leader Carmel Sepuloni dismissed the idea that Wellington is “dying,” instead framing the current struggles as growing pains. From the government’s perspective, investment in the capital’s future will eventually pay off, even if it’s causing frustration right now. The intention is to create a city that’s better equipped to handle population growth, natural disasters, and modern demands.

However, not everyone is convinced. The public argues that the pace of change is too slow and communication

around disruptions is lacking. Business owners have called for better support, claiming they’re being asked to shoulder too much of the burden while waiting for promised improvements to materialise. Construction zones can stretch for months, if not years, creating a sense of limbo for both business owners and customers.

The conversation around Wellington’s so-called death also touches on something deeper: a sense of identity. For decades, Wellington has prided itself on being New Zealand’s cultural capital. It’s where people come for film festivals, live theatre, coffee dates, and creative energy.

So, when a prominent store or café shuts down, it feels personal. Each closure chips

What’s clear is that the people of Wellington care deeply about their city. And if there’s one thing this city has proven time and time again, it’s that it’s full of resilience.

away at the things that make Wellington, well, Wellington.

At the same time, it’s worth asking whether the narrative of decline is entirely fair. Cities, like people, go through phases. Wellington isn’t the first urban centre to face retail closures or construction headaches, and it won’t be the last. Other cities around the world have faced similar challenges and emerged stronger, finding new ways to adapt to changing times. The rise of online shopping, shifts in consumer habits, and economic uncertainty are not

unique to Wellington. There’s also hope to be found in the community itself. Wellingtonians are known for their passion, and many are actively working to bring life back to the city. From popup markets to street festivals, initiatives are popping up to remind people that the city still has a lot to offer.

Local business owners are banding together to share resources and ideas, and there’s a growing push to encourage people to support local—whether that’s grabbing

a coffee at a nearby café or spending a day exploring shops in the CBD.

So, is Wellington dying? The truth is, it depends on who you ask. For some, the closures and construction disruptions feel like a death knell. For others, it’s simply a challenging period that the city will push through. Perhaps the real question isn’t whether Wellington is dying but what kind of city it wants to become. Will it hold on to its creative roots and unique vibe, or will it morph into something new?

What’s clear is that the people of Wellington care deeply about their city. And if there’s one thing this city has proven time and time again, it’s that it’s full of resilience. The wind may blow, but Wellington always finds a way to stand tall.

The future of our fairways

By Ben O’Connell

Golf courses provide much-needed green and recreational space, but as land values rise, housing shortages grow, and major weather events persist, are we using these vast areas the best way?

It’s a prospect the Hastings Golf Club is currently facing. The proposal to rezone the club and develop it into a tourist destination with 170 residential dwellings alongside its fairways is up for public consultation. New recreational and commercial facilities, as well as short-stay visitor accommodation, could soon be built along the green.

With aging buildings outside the community’s ability to replace, Hastings Golf Club had the courage to undertake the ambitious plans. The plan looks to revitalise the club and ensure it thrives at a high level for future generations. The region’s Council stated that the plans represent a unique addition to the region, a bespoke tourism opportunity that cannot be easily duplicated elsewhere.

“The vision is to create a residential lifestyle community within the golf course property that enables enhancement of the facility to a level that transforms the site into a destination asset for the wider community and strengthens and enhances the linkages with other nearby attractions and activities such as the cycleway and vineyards,” says the club’s general manager Michelle Campbell.

Converting golf courses, either partly or wholly, into residential and commercial zones has become increasingly common. Still, doing so isn’t easy; the developers’ application to the Hastings District Council spans over 200 pages of designs, impact projections, and cultural implications.

Further north, the Auckland Council proposed halving AF Thomas Park, the Takapuna Golf Course, and developing the area into a floodwater catchment. “The January 2023 floods had a devastating impact on our community, negatively affecting thousands of homes and businesses in the Wairau catchment and causing millions of dollars of damage to community facilities,” North Shore ward councillor Richard Hills says.

“I recognise the potential changes to AF Thomas Park is upsetting to some of our golfing community and those who use this stunning course. As part of the design process, the council and local boards will work with the community to understand what opportunities may be available to meet the wider golfing and recreation needs of the north shore, alongside providing much-needed flood protection and safety for this community.”

It’s proved a contentious plan, with a public petition

With aging buildings outside the community’s ability to replace, Hastings Golf Club had the courage to undertake the ambitious plans.

launched to save the nation’s most popular course. Stephen Dowd, Takapuna Golf Club spokesperson, says courses around the world have been designed to help manage water during flooding events, and there is considerable scope to increase the Takapuna course’s existing capacity, without destroying a community asset.

Tom Mansell leads Auckland Council’s sustainable partnerships team, which oversees healthy waters and flood resilience. “Changes to the golf course will impact current users, but our priority must be to reduce flood risks to homes, schools, and businesses, protect vital infrastructure, and create a space that serves the entire community in multiple ways,” he says.

As our cities grow, cases like these highlight the challenges of balancing tradition and progress. While some see these projects as a chance to modernise infrastructure, create housing and tourism, and improve disaster resilience, others worry about losing vital green space. Such large-scale rezone plans shape our urban centres for decades to come.

Faster, greener and more convenient

After nearly three years of waiting, the Pukekohe train service officially resumed in February, significantly improving the morning commute for locals.

“Pukekohe Train Station re-opening is a welcomed relief to many in the area,” says Franklin Councillor Andy Baker.

The station had been closed since August 2022 as part of a major KiwiRail upgrade

to electrify the southern rail line. The extensive project aimed to modernise Auckland’s public transport infrastructure, supporting the region’s growing population and long-term sustainability goals.

The upgraded Pukekohe station now features an electrified train service, an improved platform layout designed to accommodate

six-car trains and modern passenger facilities. These changes are expected to enhance the commuting experience by offering faster and more efficient travel options.

Prior to the reopening, Pukekohe residents had to take a bus to Papakura before transferring to the city-bound train to Britomart. Now, with the station fully

operational, passengers can travel directly to their destination without the inconvenience of switching at Papakura.

The return of the direct train service is expected to encourage more people to choose rail over cars, ultimately easing traffic congestion and reducing carbon emissions. “As Pukekohe grows, it’s vital our transport system supports residents to move around with ease, reducing congestion and carbon emissions,” says Baker.

The resumption of the train service is not the only

positive news for commuters. Auckland Transport (AT) recently announced fare zone changes and a weekly fare cap, making public transport more affordable.

HOP Card users now pay a maximum of $50 per week for unlimited bus, train, and inner-harbour ferry rides. Additionally, the fare system has been simplified, with a single trip on buses or trains capped at $7.65 (four zones), regardless of distance or transfers.“The fare adjustment is offset by the introduction of zones. Commuters from Pukekohe will travel across fewer zones, lowering transport costs,” Baker explains. The move is expected to make public

transport a more attractive option for regular commuters.

The reopening of Pukekohe Station marks an important milestone in Auckland’s ongoing efforts to improve public transport infrastructure. As the city expands, ensuring an efficient and cost-effective transport system is crucial for managing growth and maintaining liveability. Trains now run every 20 minutes between Pukekohe Station and Britomart along the Southern Line, offering greater flexibility for commuters. For more details and to view timetables, visit Journey Planner or use the AT Mobile app.

The fare adjustment is offset by the introduction of zones. Commuters from Pukekohe will travel across fewer zones, lowering transport costs.

For many residents, the station’s reopening is a long-awaited development that restores a critical transport link and enhances connectivity across the region. As Auckland continues to evolve,

investments in public transport will play a vital role in shaping the city’s future, making daily travel more convenient, sustainable, and affordable for everyone.

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Ironclad investment Is a steel-framed home right for you?

By Ben O’Connell

With over 30,000 homes built in New Zealand every year, it’s no wonder the industry battle between timber frames and steel frames is intense.

Members of the timber team say that steel homes have a larger carbon footprint, poor thermal performance, can be susceptible to corrosion and rust, transmit sound more readily within the home, and make your Internet connection spotty, among other reasons.

Supporters of steel frame homes list enhanced fire resistance, design flexibility, and resistance to pests, mould growth and decay as some of the material’s advantages.

Still, interest in light gauge steel frame (LGSF) homes is growing, accounting for 6% of the homes built in New Zealand. Most of our roofs are steel, so why not the frame, too? Greg Jones is the deputy chair of NASH, the National Association of Steel Frames Housing. He refutes many of the common

arguments against steel homes, some of which have fallen as the industry has developed.

One such example is thermal performance. Greg says this is resolved by mandating the level of installation used in a steel-framed home.

“Thermal transfer is not solely a steel frame issue; timber is prone to this,” he says. “Take a look around next autumn and look for the shadows of the studs on the exterior walls of timber homes... that’s thermal transfer.”

Greg cites a current NASH project on moving light gauge steel frame homes into the next generation. “There are some exciting products that can improve efficiency and fit in with the machine manufacturing accuracy of LGSF,” he says.

Another concern about steel frames is that ‘tinny feeling’, but as an LBP carpentry, Greg says there’s nothing tinny about steel framed homes: they fully comply with the New Zealand Building Code, and once the house is lined, there’s no real way of knowing.

He notes that sound transfer needs to be considered no matter what material is used. “Sound does travel through steel, but we aren’t building a railroad,” he remarks. “Using good design and materials that absorb, isolate or deflect sound is essential to creating a liveable environment.

And we cannot ignore money. NASH says that though LGSF can be more expensive than other materials at first, its long-term benefits prove more cost-effective. “In general, we are on par to 10% cheaper than our timber counterparts,” Greg says, especially when you consider every component of a timber frame, down to the last brace and purlin.

Also saving the client, steel frames are typically built quickly, meaning efficiency,

schedule certainty, and pre-punched services, which save time and onsite mess. Builders aren’t as tired at the end of a day working with steel over timber frames.

Greg advises anyone considering a steel home to align with an architect and NASH fabricator. Finding industry experts is crucial. A full 3D model project render will be made so that you can manipulate and see how the rooms will look.

“We are experts in modular building, so plans and details are comprehensive without being incomprehensible,” he says. “Be aware of the hold timber has on our industry and what that means to the information you have been gathering while doing your due diligence.”

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Leveraging urban density

A new report by the New Zealand Infrastructure Commission, Te Waihanga, has highlighted Auckland’s population density as a significant factor in reducing infrastructure costs.

The findings emphasise the critical need for strategic planning to maximise these economic advantages as the city gears up for a projected population increase of nearly 30% over the next 25 years. Auckland’s urban density has long been considered a double-edged sword, but this report sheds light on how it can work to the nation’s economic advantage while presenting challenges that require careful management.

The report identifies several areas where Auckland’s density has led to measurable cost savings. From broadband rollout to electricity distribution, the efficiencies achieved in this metropolitan hub stand in stark contrast to the challenges of servicing rural areas.

Ultra-fast broadband

The ultra-fast broadband rollout between 2009 and 2022 exemplifies Auckland’s cost-saving potential. The perhousehold cost to the Crown in Auckland was $971 compared to $1,110 in other regions—a 13% reduction. This efficiency is largely due to the ability to connect more households per

areas.

Electricity

distribution

Retail electricity prices in parts of Auckland are about 5% lower than the national average, thanks to reduced distribution costs. In rural areas, electricity lines stretch further to serve fewer customers, but in Auckland, a single kilometre of line can serve multiple households, leading to significant savings.

Land transport

Auckland’s compactness has resulted in shorter travel distances and lower per-capita road infrastructure needs. The city has 79% fewer local roads and 88% fewer state highways per capita compared to the rest of New Zealand. This reduces the overall burden of maintaining an expansive road network. Public transport also thrives in this environment,

While Auckland’s density offers economic benefits, it also presents challenges. Land prices in the city are considerably higher than in rural areas, making infrastructure projects more expensive.

with Auckland accounting for 55% of the nation’s total public transport boardings. The city’s density makes investments in public transport more economically viable compared to sprawling regions with less concentrated populations.

The National Land Transport Fund (NLTF) allocates 33% of its resources to Auckland, mirroring the region’s share of New Zealand’s total population. However, the allocation

priorities differ due to Auckland’s unique infrastructure demands.

Road maintenance

Auckland’s smaller road network requires less expenditure on maintenance compared to other regions with extensive rural roads.

Public transport

With a higher reliance on public transport, Auckland directs more funding toward operational costs and expanding its public transit network.

Road improvements

Urban complexities, such as high land acquisition costs and the need for advanced engineering solutions, drive higher spending on road upgrades in Auckland compared to other parts of the country.

kilometre of cabling in dense urban

One of the report’s central recommendations is the need for proactive infrastructure planning to manage costs effectively in the future. Early designation or acquisition of land for infrastructure projects can significantly reduce expenses.

A striking example from the report involves the NorthSouth Opaheke Arterial. If land had been acquired early in the planning process, it would have cost approximately $78 million. However, delaying this acquisition could see costs balloon to an estimated $1 billion—a staggering 13-fold increase. Such examples highlight the importance of foresight and long-term planning to ensure infrastructure projects remain financially feasible.

While Auckland’s density offers economic benefits, it also presents challenges. Land prices in the city are considerably higher than in rural areas, making infrastructure projects more expensive. Urban environments often require additional investments in mitigation measures, such as noise reduction and environmental protection, further driving up costs.

The rapid pace of urbanisation also places pressure on existing infrastructure, necessitating upgrades and expansions to accommodate growing demand. Without careful planning, the benefits of density can quickly be outweighed by the challenges of congestion, pollution, and inadequate services.

Te Waihanga’s findings align with previous research, including the National Construction Pipeline Report 2023, which forecasted building activity over the next six years. Both reports stress the importance of efficient infrastructure delivery to meet the demands of a growing population. These insights are relevant not only for Auckland but for all urban centres in New Zealand facing similar growth pressures.

The Infrastructure Commission has also emphasised the need to address existing infrastructure deficits. Many parts of the country grapple with ageing infrastructure that is ill-equipped to handle future demands. By learning from Auckland’s successes and challenges, policymakers

can develop strategies that optimise infrastructure investment nationwide.

Auckland’s anticipated growth presents a unique opportunity for New Zealand to optimise its infrastructure investments. By embracing the advantages of urban density and addressing the associated challenges through proactive planning, the city can position itself as a model for sustainable urban development.

The lessons outlined in Te Waihanga’s report extend beyond Auckland, offering insights that can benefit the entire nation. As New Zealand navigates its infrastructure future, the choices made today will have lasting implications for generations to come.

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Construction industry experiences mental health gains – but

there’s still more to do

Recent research by MATES in Construction on the wellbeing of construction industry workers shows that while mental health is improving overall, our most vulnerable workers need more support.

The 2024 MATES in Construction Industry Well-being Survey, supported by ASB, involved a record 2,000+ workers and revealed

While overall mental health in the industry is improving, younger workers (aged 15-24), females, LGBTQIA+ individuals, Europeans, Pasifika Peoples, those who are separated/ divorced, and workers living with disabilities or long-term illness are at greater risk.

a positive shift within the industry, with 85% of workers reporting good mental health in 2023 - an encouraging increase from 75% in 2022 and 70% in 2021.

Despite this upward trend, the research underscores the pressing need for targeted support, as certain groups

within the industry remain particularly vulnerable to mental health challenges.

Vulnerable groups still at risk

While overall mental health in the industry is improving, younger workers (aged 15-24), females, LGBTQIA+

individuals, Europeans, Pasifika peoples, those who are separated/divorced, and workers living with disabilities or long-term illness are at greater risk.

In an industry notorious for its high-pressure environment, these groups face heightened psychological distress, emphasising the need for tailored mental health initiatives and stronger support systems at work.

Workplace stressors

With support from BRANZ, 19 focus groups with 115 workers in total revealed the common workplace stressors contributing to mental health

CONTENT WARNING: Mentions of suicide and self-harm

Open discussion about mental health in the workplace, and support from friends/ whānau, colleagues and wider community are cited as crucial in maintaining workers’ well-being. Those who have engaged with MATES report feeling less psychological distress and fewer instances of suicidal behaviour.

struggles in construction. Financial instability, poor communication, low pay, “old school masculinity” site culture, job insecurity and insufficient mental health support emerged across all groups.

Some 25% of workers cite workload as a primary concern compounded by poor weather, work demands, stress among peers and the pressure of tight deadlines. At home, the issues affecting mental health include lack of sleep/ exhaustion, lack of time for self-care, relationship issues and health concerns.

BRANZ Research General Manager, Dr Chris Litten, says the research adds the critical voice of construction workers to the conversation on mental health and suicide prevention in the industry.

“We’re grateful to the people who generously shared their own experiences about how home and work life pressures contribute to mental health struggles.

“These new insights will help drive positive change in the industry and save lives. It’s been a privilege to support this important research with funding from the Building Research Levy, and we look forward to an ongoing relationship with MATES.

Protective factors:

The power of support

Despite these challenges, the MATES in Construction suicide prevention programme stands out in the research as a powerful protective factor for those it touches.

Every life saved is a powerful reminder of the difference the MATES programme makes -

not only for the individuals and their whānau, but also for the wider industry where the positive impacts extend far beyond one person.

MATES 0800

Supportline: Essential support for vulnerable workers

In addition to in-person support methods, MATES in Construction’s 0800 Supportline, operating 24/7, stands as a crucial lifeline for the industry. With approximately 1,200 calls annually, the Supportline provides immediate and essential support in an industry where timely intervention can be life-saving.

Looking forward: A call for collective action

MATES’ latest findings serve as both a beacon of progress and a call to action. While the industry has made significant strides in improving mental health, the work is far from overparticularly for groups who remain at risk.

The combined efforts of industry leaders, businesses, and community organisations are crucial to addressing these gaps and ensuring that all workers receive the support they need.

Need help and support? Check out these resources:

Anxiety New Zealand 0800 ANXIETY (0800 269 4389)

Depression Helpline 0800 111 757

Kidsline 0800 54 37 54 (0800 KIDSLINE) for young people up to 18 years of age. Open 24/7

Lifeline 0800 543 354 or (09) 5222 999 within Auckland Need to Talk? Call or text 1737

Rural Support Trust 0800 787 254 (0800 RURAL HELP)

Samaritans 0800 726 666

Shakti Community Council 0800 742 584

Shine (domestic violence) 0508 744 633

Suicide Crisis Helpline 0508 828 865 (0508 TAUTOKO)

Supporting Families in Mental Illness

0800 732 825 thelowdown.co.nz email team@thelowdown. co.nz or free text 5626

What’s Up

0800 WHATS UP (0800 942 8787)

Women’s Refuge 0800 733 843 (0800 REFUGE)

Youthline 0800 376 633, text 234, email talk@youthline.co.nz or online chat

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