FUJITSU HEAT PUMPS ` PROUDLY BRINGING YOU TONIGHT'S 3D. KIA ORA. TONIGHT, THE LATEST IN OUR SPECIAL SERIES, 3D INVESTIGATES ` AND THIS IS IMPORTANT. IT'S ABOUT THE COST OF BUILDING IN NZ. MICHAEL MORRAH HAS DISCOVERED A WEB OF SECRET DEALS AND FRIENDLY ARRANGEMENTS ` ALL OF WHICH COULD MAKE THE PRICE THAT YOU PAY FOR YOUR HOME OR YOUR EXTENSION OR YOUR NEW DECK... SO MUCH HIGHER. BUZZ! IT'S NOT HARD TO FIND EVIDENCE OF THE BUILDING BOOM. BUT BUYING A HOME IN THIS SO-CALLED GOLDEN ERA HAS NEVER BEEN SO DIFFICULT. EVERYTHING'S GOING UP ` LAND PRICES, MORTGAGES AND CONSTRUCTION RED TAPE. PLUS, WHAT MANY SEE AS EXORBITANT COSTS FOR THE VERY MATERIALS WE USE. THE BUILDING BLOCKS, LIKE THE TIMBER, CONCRETE AND PLASTER. DO WE PAY TOO MUCH FOR MATERIALS IN NZ? YES, WE DO. ABSOLUTELY. MY OPINION ` SUBSTANTIALLY RIPPED OFF. I SPEAK TO A LOT OF BUILDERS, A LOT OF HOMEOWNERS AND DEVELOPERS. WE'RE ALL FRUSTRATED FOR THE SIMPLE FACT THAT THINGS ARE VERY EXPENSIVE. IN THIS INVESTIGATION WE'VE UNCOVERED A WHOLE RANGE OF PRACTICES IN THE BUILDING INDUSTRY THAT KEEP THOSE PRICES UP ` FROM PERK TRIPS FOR BUILDERS TO EXCLUSIVE STOCKING DEALS AT HARDWARE CHAINS. SO YOU'VE ONLY GOT GIB BOARD? TONY SEWALL IS THE HEAD OF NGAI TAHU PROPERTY, THE BIGGEST DEVELOPER IN THE SOUTH ISLAND. HE'S SENT TEAMS AROUND THE WORLD TO INVESTIGATE BUILDING MATERIAL PRICES. WE'D BE PAYING AROUND 30% MORE THAN IN AUSTRALIA. PROBABLY 60% MORE THAN THE USA. THAT'S A HUGE AMOUNT. IT IS, AND THE USA PRODUCT IS BETTER. THE LATEST QUOTABLE VALUE STATISTICS TELL US $280,000 - $312,000 WILL BUILD YOU A MEDIUM HOME IN NZ. IN AUSTRALIA ITS MUCH CHEAPER ` AN EQUIVALENT HOUSE WILL SET YOU BACK $260,000 - $280,000. WE NEED TO OPEN UP THE NZ MARKET TO THE INTERNATIONAL ONE. IF THERE'S A PRODUCT THAT'S BEING USED ON A BUILDING HERE, THE BUILDER SHOULD HAVE CHOICE FROM ALL ROUND THE WORLD. THAT WILL KEEP THE COMPETITIVE TENSION UP AND KEEP THE PRICING AT THE RIGHT LEVEL. EVEN A SIMPLE COMPARISON OF IDENTICAL PRODUCTS HERE AND IN AUSTRALIA PROVES A POINT. HERE YOU'LL PAY $11 MORE THAN AT BUNNINGS IN AUSTRALIA FOR THIS DRILL, ALMOST AN EXTRA $18 FOR A BIT OF BASIC PLASTIC PIPING, AND 4L OF PAINT WILL SET YOU BACK AN ADDITIONAL $20.79. BUNNINGS NZ BLAMES TRANSPORT COSTS AND OUR SMALL POPULATION. BUT IN REALITY THERE'S A MYRIAD OF THINGS WHICH INDUSTRY INSIDERS SAY ARE PUSHING UP PRICES. FOUND THERE ARE EXCLUSIVE DEALS BETWEEN SOME SUPPLIERS AND BIG HARDWARE CHAINS TO STOCK ONLY ONE BRAND OF PRODUCT, SO THERE'S LITTLE CHOICE FOR THE CONSUMER. AND THEN THERE ARE ALSO KICKBACKS AND REBATES ` REWARDS DESIGNED TO KEEP BUILDERS LOYAL TO A PARTICULAR TYPE OF PRODUCT. FOR EXAMPLE, WE'VE DISCOVERED MITRE 10 AND ITS SUPPLIERS PAID FOR 150 KIWI BUILDERS TO GO TO SYDNEY FOR FOUR DAYS TO WATCH THE BLEDISLOE CUP MATCH. THE ALL-EXPENSES PAID EXCURSION INCLUDED BEING PUT UP AT THE LUXURY SHERATON HOTEL. THEY'RE CUSTOMER LOYALTY PROGRAMMES. THEY'RE WELL KNOWN INTERNATIONALLY. BUT QUITE SIMPLY, THE CUSTOMER IS PAYING FOR THAT. SO WHEN YOUR BUILDER IS SUNNING HIMSELF IN ITALY, YOU'VE PAID FOR THAT. THERE IS NO FREE MEAL. MITRE 10 SAYS THE TRIP WAS A NETWORKING EVENT, NOT A LOYALTY PROGRAMME, AND THEY DENY THE COSTS ARE PASSED ON TO THE CONSUMER, AND YES, SUCH PERKS ARE FOUND IN MANY BUSINESSES. BUT TONY SEWALL RECKONS WE ALL NEED TO KNOW MORE ABOUT THEM, ESPECIALLY IN AN INDUSTRY WHICH IS SO IMPORTANT TO THE NZ ECONOMY. I THINK THEY'RE SECRET COMMISSIONS. I DON'T LIKE THEM. THEY'RE NOT PUT OUT IN FRONT OF US. WE HAVE CONTRACT CONDITIONS HERE AT NGAI TAHU WHERE WE BAN THAT. WE DON'T THINK THAT'S REALLY HONEST. ENGINEER AND FORMER MATERIALS IMPORTER, STEVE TULLY, AGREES. SO IN THE END, THE POOR GUY WHO'S BUYING THE FINISHED PRODUCT... IS PAYING FOR IF YOU LIKE FAVOURS. AND THE COST OF THOSE FAVOURS ARE ADDED TO THE COST OF THE SALE OF THE PRODUCT, SO THE PRODUCT MIGHT ONLY COST A DOLLAR BUT YOU'RE PAYING 6 FOR IT. THE GOVERNMENT WAS CONCERNED ENOUGH ABOUT THESE DEALS THAT IT INVESTIGATED. HERE'S HOUSING MINISTER NICK SMITH TWO YEARS AGO. I THINK WE HAVE TO ASK SOME QUESTIONS AROUND SOME OF THE BUSINESSES THAT GO ON IN TERMS OF REBATES AND DISCOUNTS THAT GO ON WITHIN THE INDUSTRY. WHEN HE SAYS REBATES HE'S TALKING ABOUT ANYTHING FROM TRIPS OVERSEAS TO CASH BACK LOYALTY BONUSES. CONFIDENTIAL BRIEFING NOTES GIVEN TO THE MINISTER SHOW THE PRACTICE IS 'WIDESPREAD'. AND GAVE THE EXAMPLE OF 'A TRIP TO FIJI AS A REWARD'. IT ALSO SHOWS THE GOVERNMENT CONSIDERED FORCING BUILDERS AND SUPPLIERS TO DISCLOSE THEIR PERK DEALS. BUT IN THE END, ENFORCED TRANSPARENCY WAS CONSIDERED TOO HARD AND TOO EXPENSIVE. BUT PERHAPS OF MOST CONCERN IS THIS ` HIDDEN SUPPLY DEALS NONE OF THE HARDWARE CHAINS WANTED TO TALK ABOUT. YOU SEE, SOME SHOPS GET PAID MONEY TO STOCK ONLY ONE BRAND OF PRODUCT. UM, I'M JUST LOOKING FOR A QUOTE FOR SOME PLASTERBOARD AND... WE WANTED TO TEST THIS, SO WENT TO MITRE 10 TO BUY TWO COMMON ITEMS ` PLASTERBOARD AND FIBRE CEMENT CLADDING. BUT WE COULD ONLY FIND GIB, A FLETCHERS PRODUCT, AND CLADDING MADE BY JAMES HARDIE. DO YOU STOCK ANY OTHER BRANDS THAN THAT THAT ARE CHEAPER? AND IT'S THE SAME WITH THE GIB? YES. MITRE 10 WOULDN'T COMMENT ON SPECIFIC ARRANGEMENTS, BUT CONFIRMED THEY HAVE WHAT THEY CALLED 'NATIONAL SUPPLIERS FOR SOME PRODUCTS'. IT WAS THE SAME STORY AT THE HARDWARE CHAIN, ITM, WHERE WE FOUND NOTHING ELSE BUT GIB PLASTERBOARD. THERE'S NO OTHER BRAND THAT I COULD GET THAT'S CHEAPER? THERE ARE OTHER PLASTERBOARDS OUT THERE, JUST NOT AT THIS SHOP. WE WERE WARNED OFF THE ALTERNATIVES, LIKE A WELL-RESPECTED PRODUCT CALLED ELEPHANT BOARD. BUT WHEN WE PUSHED THE SALES TEAM ON THE CHEAPER ELEPHANT BOARD OPTION, OUT CAME THE CALCULATOR AGAIN. SUDDENLY THE PRICE OF GIB DROPPED FROM $21.60 TO $19 A SHEET. SO YOU CAN GIVE IT TO ME A BIT CHEAPER, CAN YOU? YEAH, YEAH. IT'S NEARLY CHRISTMAS. ALL LAUGH AT ANOTHER ITM STORE, IT BECAME CLEAR WHY ONLY CERTAIN PRODUCTS ARE ON THE SHELVES. YOU DON'T STOCK THEM? WHY NOT? I THINK THERE SHOULD BE NO REBATES. I THINK THAT ALL OF THE STORES SHOULD GET THE POSSIBLE INVOICE PRICE. AUCKLAND BUILDING MATERIALS IMPORTER, JASON BARDELL, SAYS SOME OF THE REBATE BONUSES FOR SOLE STOCKING CAN MEAN BIG MONEY. HOW MUCH ARE WE TALKING IN TERMS OF BONUSES? HUNDREDS OF THOUSANDS OF DOLLARS. FLETCHERS HAS SOME EXCLUSIVE SUPPLY DEALS WITH STORES ` IS THAT HELPFUL OR HARMFUL FOR THE CONSUMER? I'M THE WRONG PERSON TO ASK. WE DON'T DICTATE TO USE ONLY FLETCHER PRODUCTS IN OUR HOUSES. STEVE EVANS IS THE HEAD OF HOUSING FOR FLETCHER BUILDING, AND IS CURRENTLY WORKING ON A COMMUNITY DEVELOPMENT AT THREE KINGS QUARRY IN AUCKLAND, WHERE THERE ARE PLANS TO BUILD 1500 HOMES AND APARTMENTS. WHAT DO YOU THINK IS CONTRIBUTING TO THE HIGH COST OF HOUSING AT THE MOMENT? THE COSTS ARE LAND, DEVELOPMENT CONTRIBUTIONS, DESIGN COSTS AND THE BUILD COST AND WITHIN THE BUILD COST. WITHIN THE BUILD COSTS THERE'S MATERIAL COST AND WITHIN THAT THERE'S LABOUR COST, IF YOU LIKE. SURELY MATERIALS PLAY A SIGNIFICANT PART IN THE OVERALL COSTS? SURPRISINGLY NOT. SURPRISINGLY THE MATERIALS FORMS FROM MEMORY 10% - 15% OF THAT OVERALL SUM. I THINK IT'S 24% ACCORDING TO FLETCHER BUILDING FIGURES. THERE YOU GO. SO IT IS 24% THEN. SO THAT'S ALMOST A QUARTER OF THE COST, SO IT'S QUITE SIGNIFICANT. IT IS QUITE SIGNIFICANT. BUT WHAT'S YOUR PERSONAL VIEW OF REBATES ` DON'T THEY ULTIMATELY JUST REMOVE CHOICE FOR THE CONSUMER? I WOULD BE THE WRONG PERSON TO ASK. FROM A PERSONAL POINT OF VIEW, I HAVE NOT EXPERIENCED THAT. IF THERE ARE BARRIERS TO ENTRY THAT IS NOT NECESSARILY A GOOD THING. I'M NOT AWARE OF ANY ENFORCED BARRIERS OF ENTRY THAT FLETCHER BUILDING IS PUTTING ON ANY OF ITS PRODUCTS. BUT FLETCHERS DOES HAVE WAYS OF KEEPING CUSTOMERS AWAY FROM COMPETITORS. TAKE THIS CONFIDENTIAL AGREEMENT BETWEEN FLETCHER SUBSIDIARY WINSTONE AND A HOUSE BUILDING COMPANY. IT SAYS THE BUILDERS MUST REMAIN LOYAL TO GIB PLASTERBOARD, IN EXCHANGE FOR BIG DISCOUNTS AND MONEY FOR MARKETING AND PROMOTION. 99% OF MR AND MRS AVERAGE KIWI WOULDN'T HAVE AN IDEA OF WHAT GOES ON IN THE MARKETING, PROMOTION AND THE VALUE THEY'RE HAVING TO PAY FOR THEIR PRODUCT. GENTLE MUSIC You can do it. (GASPS) Good boy. Bye, Mummy. (SIGHS) CLICK! What? (SOBS) At Vodafone Digi-Parenting, you'll find simple, practical parenting advice to help your family stay connected. Vodafone. Power to family. Power to you. OUR INVESTIGATION INTO THE HIGH COST OF BUILDING MATERIALS HAS BROUGHT US TO A SMALL FACTORY ON THE OUTSKIRTS OF CHRISTCHURCH CITY, WHERE JEREMY WANG IMPORTS AND MANUFACTURES A NUMBER OF PRODUCTS TO COMPETE WITH THE BIG NZ COMPANIES. ONE OF THEM IS PROROC, A THAI-MADE PLASTERBOARD HE THINKS IS AS GOOD AS THE MARKET LEADER, GIB ` AND CHEAPER. HE DID GET IT ON THE SHELVES AT ONE OF THE BIG HARDWARE OUTLETS, BUT NOT FOR LONG. AS SOON AS OUR COMPETITORS SAW THE PRODUCT, IT GOT PULLED OUT. I'M NOT SURE WHETHER IT WAS THE COMPETITORS OR THE MANAGEMENT AT THOSE PLACES. IT GOT TAKEN OUT OF THE STORE? IT WAS SOLD AND NOT REPLENISHED. WASN'T REPLACED, SO... AND WE'VE GONE AND TRIED TO PUT OUR PRODUCT INTO OTHER PLACES, AND BASICALLY, THEY DON'T WANNA KNOW. AND MUCH THE SAME HAPPENED WITH ANOTHER INTERNATIONAL SUPPLIER ` WHEN IT CAME TIME FOR THE GOVERNMENT TO DECIDE WHO WOULD SUPPLY PLASTERBOARD TO THE CHRISTCHURCH REBUILD, THE CONTRACT WENT TO GIB AND A MAJOR GERMAN FIRM, KNAUF. THE GOVERNMENT SAID IT WOULD HELP IMPROVE COMPETITION. BUT WITHIN A YEAR, THE GERMAN COMPANY RAN INTO PROBLEMS. THERE WERE RESIGNATIONS AND THE COMPANY ANNOUNCED IT WAS REVIEWING ITS NZ OPERATIONS. THE WORLD'S SECOND-BIGGEST SUPPLIER OF PLASTERBOARD SIMPLY COULDN'T GAIN TRACTION IN A MARKET DOMINATED BY FLETCHER BUILDING. IN FACT, FLETCHER'S SHARE OF THE NZ PLASTERBOARD MARKET IS 94%. AFTER SEVERAL COMPLAINTS, INCLUDING FROM KNAUF, THE COMMERCE COMMISSION INVESTIGATED. IT FOUND EVIDENCE OF AGGRESSIVE MARKET BEHAVIOUR, BUT NO ILLEGAL, ANTI-COMPETITIVE PRACTICE. WHY DO YOU THINK KNAUF FAILED? I DON'T KNOW. YOU'D HAVE TO ASK THEM. WE THINK WE PROVIDE A GREAT OFFERING TO OUR CUSTOMERS. ONE WOULD HOPE THAT GOES NOT JUST IN THE WALLBOARDS INDUSTRY, BUT IN TERMS OF ANY OF THE BUSINESS IN WHICH WE OPERATE. 94% OF THE MARKET OF WALLBOARD IS PRETTY SIGNIFICANT, ISN'T IT? IT IS SIGNIFICANT. IT'S THE REALITY, BUT IT'S NOT BECAUSE WE RESTRICT COMPETITION. FLETCHERS' COMPETITORS DON'T NECESSARILY AGREE WITH THAT. ONE OF THEM, ELEPHANT PLASTERBOARD, TOLD THE COMMERCE MINISTER THIS YEAR THAT AGGRESSIVE MARKET TACTICS DO 'CURTAIL COMPETITION IN THE SUPPLY OF ALTERNATIVE WALLBOARD'. JEREMY WANG AGREES. WHY DOES THE CONSUMER NOT HAVE A CHOICE? YOU ASKED ME WHAT KEEPS PRICES UP. IF YOU ARE THE ONLY SUPPLIER OF GIB TO THE REBUILD, YOU CAN ANSWER THAT YOURSELF. SOME WOULD SAY YOU'RE JUST JEALOUS OF THEIR MARKET SHARE. I DO ENVY THEIR MARKETING STRATEGIES, THEIR SKILLS. THEY ARE A SUPERB COMPANY, THEY DO A FINE JOB. NO, I'M NOT JEALOUS, I JUST THINK THE CONSUMER NEEDS CHOICE. OFFICIAL REPORTS WE'VE OBTAINED SHOW THE GOVERNMENT'S LONG BEEN AWARE OF COMPETITION ISSUES ACROSS A RANGE OF PRODUCTS. THEY EVEN HAD A CONSULTANCY GROUP LOOK INTO THE PROBLEM. THIS 2013 REPORT SAYS SOME HARDWARE CHAINS ARE UNWILLING TO STOCK ALTERNATIVES TO GIB PLASTERBOARD. AND IT RAISES CONCERNS ABOUT PRODUCTS LIKE CONCRETE, STEEL, INSULATION AND PIPES, WHERE TWO SUPPLIERS ` USUALLY FLETCHERS AND ONE OTHER DOMINATE A MARKET. THIS IS A SIMPLE SLEEP-OUT ` A 10 SQUARE METRE STRUCTURE. JEREMY WANG SAYS THERE'S ANOTHER ISSUE PREVENTING ALTERNATIVE PRODUCT BEING CONSIDERED. WHEN PLANS ARE DRAWN UP, THEY OFTEN SPECIFY WHICH BRANDS YOU SHOULD USE. JEREMY WANG: 18.10 WE'VE GOT GIB RONDO STEEL CEILINGS, PINK BATTS, JAMES HARDIE LINEA BOARD. SO THERE'S A LOT OF SPECIFIC PRODUCTS THERE. WHO'S SPECIFIED THOSE PRODUCTS? AN ARCHITECT SPECIFIED THEM, BUT THE COUNCILS LOOK AT THESE PLANS, AND THAT'S WHAT THEY LOOK FOR. THE ARCHITECTS DO THIS PARTLY BECAUSE THEY KNOW COUNCIL INSPECTORS ARE RISK-AVERSE AND FEEL MORE COMFORTABLE WITH BRANDS THEY KNOW WELL. AND THESE OFFICIAL DOCUMENTS FOR THE HOUSING MINISTER SHOW SOMETIMES CONSENTING AUTHORITIES THEMSELVES SIMPLY WILL 'NOT ALLOW ALTERNATIVE BRANDS TO BE USED EVEN IF IT'S TESTED TO THE SAME STANDARD'. IF YOU TOOK THIS SAME SET OF PLANS AND USED ALTERNATIVE MATERIALS THAT YOU HAVE HERE, WOULD IT BE CHEAPER? IT WOULD BE UP TO 20% CHEAPER. SO THAT'S SIGNIFICANT. THAT'S HUGE. AND THAT'S NOT THE ONLY REGULATORY HURDLE. CENTRAL GOVERNMENT GETS IN THE WAY TOO. SO THIS IS A PRODUCT THAT'S BEEN MANUFACTURED IN GERMANY. JASON BARDELL BRINGS IN PRODUCTS FROM ALL OVER THE WORLD TO SELL IN THE NZ MARKET. THIS IS A TYPE OF BOARD MADE FROM WOOD CHIPS. JASON THOUGHT IT WOULD BE AN INNOVATIVE ADDITION TO THE BUILDING INDUSTRY HERE. SO THIS IS WIDESPREAD IN GERMANY, EUROPE, THE US, ALSO ALL OVER AUSTRALIA. IT TOOK US TWO AND A HALF YEARS TO GET THE CERTIFICATION TO BE ABLE TO USE IT IN NZ. IT'S A HELL OF A LONG TIME. HELL OF A LONG TIME, HELL OF A LOT OF MONEY. HOW MUCH MONEY? ABOUT $70,000. JASON SAYS SUCH RESTRICTIONS MEAN SOME COMPANIES SIMPLY GIVE UP TRYING TO GET THEIR PRODUCT INTO NZ. WE ARE ONLY 4 AND A HALF MILLION PEOPLE. WE ARE A SMALL ISLAND AT THE BOTTOM OF THE WORLD. I THINK HAVING THE DIFFICULTY IN BEING ABLE TO BREAK INTO THE MARKET IS A PROBLEM FOR CONSUMERS. SO HOW DO YOU BUILD A CHEAP HOME? HOW DO YOU GET AROUND THE LACK OF COMPETITION? WELL, AS YOU'LL SEE, ONE BUILDER SAYS HE MIGHT HAVE AN ANSWER. WE CAN SUPPLY A HOME THAT FITS YOUR BUDGET AND A DAMN FINE HOME AT THAT. IT'S ABOUT THE COST OF BUILDING IN NZ. MICHAEL MORRAH HAS DISCOVERED A WEB OF SECRET DEALS YAHOO! (LAUGHS) SALLY AND CARL FEINERMAN HAVE ACHIEVED THEIR DREAM ` A BRAND NEW THREE BEDROOM BUILT FOR LESS THAN $200,000. SO THIS IS GOING TO BE THE NEW DINING LIVING AREA. THIS IS OUR KITCHEN. AND FOR THAT PRICE, THEY DIDN'T JUST GET THE SHELL OF A HOUSE. THIS UNIT CAME WITH BUILT-IN EVERYTHING. WE SELECTED THE PAINT FINISHES OURSELVES, TILES... THERE'S SO MUCH TO CHOOSE FROM IN CHINA. IT'S AMAZING. THERE'S SUCH A HUGE SELECTION. CARPET AS WELL ROLLED UP HERE, WHICH IS GONNA GET LAID OUT. AND THE TOILET EVEN COMES WITH A TOILET BRUSH. THE ORIGINAL DESIGN WAS ENGINEERED AND DEVELOPED IN NELSON. BUT THE ACTUAL CONSTRUCTION ALL TAKES PLACE IN A MASSIVE FACTORY IN SOUTHERN CHINA. IT'S HUGE, BRAND NEW FACILITY, ITS 2 YEARS OLD. THE PRODUCTION LINE IF YOU WALKED IT IS 20KM LONG. THE FACTORY UNDER ROOF IS 27 ACRES. BRAND NEW. AND HAVE YOU BEEN BUSY? IT'S BEEN CRAZY. CRAZY IN A GOOD WAY. INNOVATION, KEEPING UP WITH NEW DESIGN ` THERE'S A HUGE NEED. 10 YEARS AGO WHEN TONY FROST STARTED SEARCHING FOR A WAY TO GIVE KIWIS CHEAP HOUSES, HE FOUND HE HAD TO TAKE A RISK. HE KNEW HE NEEDED MATERIALS AT A COMPETITIVE PRICE, AND THE ONLY WAY TO DO THAT WAS TO GO TO THE EXTREME OF GETTING OUT OF NZ ALTOGETHER. I KNOW EXACTLY WHAT IT COSTS TO PROCURE COMPONENTS FOR HOUSING IN CHINA, THAT I ABSOLUTELY KNOW THE SAME PRODUCT IS AVAILABLE HERE ON THE SHELVES IN NZ, EXACTLY THE SAME PRODUCT? EXACTLY THE SAME. NO DIFFERENCE, AND THE PRICE DIFFERENCE IS SUBSTANTIAL. HOW MUCH? 300% - 400% IN SOME CASES. HUGE. FOR EXAMPLE, KNAUF PLASTERBOARD. IN CHINA, FROST CAN BUY IT FOR HALF OF THE PRICE OF THE EQUIVALENT GIB BOARD IN NZ. AND THAT BEGS THE NEXT QUESTION ` ARE THE CHINESE MATERIALS AND CONSTRUCTION UP TO OUR STANDARDS? A LOT OF PEOPLE WOULD SAY, THOUGH, A HOUSE IN CHINA ISN'T GOING TO BE AS GOOD QUALITY AS KIWI PRODUCTS. GOOD POINT, AND THIS IS A KIWI PRODUCT. IT'S DESIGNED HERE IN NZ, IN NELSON. ENGINEERED IN NZ, IN NELSON. CHINA, YES, IT HAS GOT ISSUES WITH SOME OF ITS QUALITY, BUT BY JOVES IF YOU SHOP IN CHINA YOU'LL FIND THE BEST TECHNOLOGY AVAILABLE IN THE WORLD. ANOTHER COST SAVING COMES WITH THE SPEED OF ASSEMBLY. THE HOUSE ARRIVES ON A TRUCK AND IS LIFTED INTO POSITION. WE THEN WATCHED AS IT WAS ALL BOLTED TOGETHER IN LESS THAN TWO HOURS, KEEPING THE USUAL COSTS OF TRADESMEN TO A MINIMUM. GETTING THE ECOTECH PRODUCT TO THIS STAGE HASN'T BEEN EASY. A GREAT DEAL OF TIME AND MONEY WENT INTO THE PLANNING, INCLUDING SATISFYING NZ'S BUILDING CODES. TONY FROST 21.59 I'VE BEEN DOING THIS FOR 10 YEARS. MILLIONS OF DOLLARS ` NOT ONLY OF MINE BUT EVERYONE AROUND ME. IT'S HARD. IT ABSOLUTELY IS HARD, BUT THE END RESULT IS SO REWARDING. IT'S BEEN REWARDING FOR SALLY AND CARL TOO, AND THEY'RE JUST PUTTING THE FINISHING TOUCHES ON THEIR NEW HOME. BUT IF A HOUSE FROM CHINA ISN'T TO YOUR LIKING, IS THERE ANY OTHER WAY TO BEAT THE SYSTEM, WITH ALL ITS COSY DEALS AND HIDDEN ARRANGEMENTS? OUR EXPERTS HAD THIS ADVICE. COME ON GUYS. GET STUCK IN. BUT THE ONLY WAY TO MAKE THAT HAPPEN IS FOR THE POPULATION TO REBEL. ASK QUESTIONS, BE ASSERTIVE. DON'T GIVE THE MONEY AWAY WITHOUT ASKING WHY. IF YOU'RE GETTING A BUILDER BUILDING YOUR HOUSE AND HE QUOTES YOU $250,000, WHY CAN'T YOU ASK HIM, 'HOW MUCH MORE ARE YOU GETTING FROM THE BUILDING SUPPLIER?' OR, 'WHAT KICKBACKS ARE YOU GETTING?' KEEP ASKING THE QUESTION. THERE'S NOTHING WRONG WITH IT. JUST ASK HIM. YES, WELL, THIS IS AN ISSUE THAT MOST PEOPLE SEEM RELUCTANT TO TALK ABOUT ` CERTAINLY PEOPLE IN GOVERNMENT. WE TRIED THE HOUSING MINISTER, BUT HE DIDN'T WANT TO APPEAR. WE WENT TO THE ECONOMIC DEVELOPMENT MINISTER, WHO REFERRED US TO THE COMMERCE MINISTER, WHO SENT US BACK TO THE HOUSING MINISTER. SO NO DICE. AND THE SAME WITH MBIE ` THAT'S THE MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT. THOUGH IN THE END, THEY DID GIVE US A WRITTEN STATEMENT, WHICH YOU CAN READ ONLINE ALONG WITH A BLOG FROM MICHAEL. OK, THAT WAS THE LATEST IN OUR NZ ON AIR-FUNDED SERIES, 3D INVESTIGATES. STAY TUNED FOR MASTERCHEF. WE'LL SEE YOU NEXT SUNDAY. THANKS FOR WATCHING. THE INTELLIGENT CHOICE FOR YOU AND YOUR HOME ` FUJITSU HEAT PUMPS. PROUD TO HAVE BROUGHT YOU TONIGHT'S 3D. COPYRIGHT ABLE 2015